A business model is a way where the company generates revenues and
makes a profit from its operations. It is often regarded as the abstract
representation of the business that has textual, graphical and conceptual
cooperation that are developed and designed by an organisation that even
includes services and products based on arrangements that need objectives and
strategic goals to achieve. The model describes the cultural, social and the
economic contexts of the values that are captured. The practice is used to
represent the business process, purpose, strategies, sourcing that also include
culture of the organisation. It is often used to classify and describe the
entrepreneurial settings that are even used by managers who can help the
company for future possible developments. In this research paper, the
conceptualized business models and its use to solve dynamic and static problems
as well as to understand how the firm's partner and their innovation process
has been discussed. The significance and the future of these business models
will also be explained in the conclusion.
The concept of business is used to
build the systems like the customized one for the numerous companies
particularly the insurances and the banks as said by the DaSilva & Trkman (2014). For an open market, the
application families include billing, handling and air- traffic control
systems. In each business case, a system identifies a sub-system in the
analysis model. The subsystem is regarded as the first prototype in iteration.
In the order or billing process of the business model, identification of the
application of these sub systems is the analysis model. Though the billing and
the order subsystems are separate but it's a matter of scope that the business
tools share applications of these architectures by Morris et
al. (2015). In
order to the management system consideration and the scope of all the business
tools in one system of the organisation should be taken. Each business worker
identifies itself to be represented by the system as automated. The business
entity is supported and identified in the business analysis model. Some of
which are considered as component entities and key mechanisms in the system.
The cluster in the business entities are group of sole business group that are
within one business case or group that are closely related to the entities and
creates a subsystem in the specific layer of the business.
The business models are systems that are used
to solve various dynamic and static problems (Bohnsack, Pinkse & Kolk, 2014). The business rules can be verified
at anytime. The business rule deals with various static structures which are
documented as diagrams in the structural view and the dynamic rule that can be
verified at any point of time when something happens. It deals with the dynamic
behavior of class objects that are documented under behavioral views. The
business analysts are used to working with more dynamic models i.e. often
regarded as behavioral as with the static i.e. structural models (Casadesus‐Masanell & Zhu, 2013). The dynamic system defines the
work of the system whereas the static modeling is what the system is. Statics
include diagram, domain model, context diagram and data flow along with the
description of the objects. The logical aspects of the data components of a
business problem improve communication along with discovery and investigation
of business requirements. Dynamic processes require hypothesis approach to
support experimentation.
The business models have used different types of firm’s partnership to
explain its system (Kastalli & Van Looy, 2013). The strategic alliances are between
non- competitors who work through various channels like news agency that
supplies to the offline and online channels. The strategic partnerships spread
risks that both the companies may take. Both partners when try to do something
new a confirmed supply stream is meant. There's a security in supplying rare
earth metals that can be a reason for a competitor. Joint ventures are a new
and innovative type in this business model (Khanagha, Volberda, & Oshri, (2014). The mutual interest of both
partners is taken into consideration that has emergence to a new market into
the business concept. Buyer supplier is the most common and used to concept in
business models which assures reliable sources coming and means a steady
confirmed buyer for their product. This partnership in business confirms the
two commercial entities to form a business alliance which might be in a loose
relationship to retain their independence or liberty to form more partners’s i.e.
an exclusive contract which binds the two for that one relationship.
The innovation process in the business model can be
explained by identifying various goals and problems that needs to be solved (Spieth, Schneckenberg, & Ricart, 2014). The first step requires goals or
needs to engage in this innovation which involves good cross section in
developing goals within an organisation and extend the client-customer network
to get a view of the market view. The analysis consists of discovery of various
situations and needs of customers as well as challenges. There is impact on
business which innovates the outside implementation. Design and development is
based on thoughts and information that is advisable during analysis to develop
ideas on portfolio that meets and innovates problems and goals (Bryman & Bell, (2015). These developed ideas; prioritization
and initial evaluation will lead to the innovation in the portfolio. The
conversion is the next major step that is the translation of ideas to practical
products that are targeted towards identified marketplace (Zikmund et
al. , 2013).
Prototypes compete with costing and rudimentary process to design or make them
innovatively involved. It is regarded as the most important step towards
modified feedback in markets and customers. Commercialization is an innovated
and developed full scale operation that needs access to facilities in
production, partnerships etc. Risk decreases slowly following this process.
Innovation always requires careful
balancing in risk and reward at almost all stages. That will be influenced by
the culture of the organisation.
Itami and Nishino (2010) developed
different visions and models in their articles about business concepts on their
systems. According to Itami and Nishino, (2010) the model of business is
considered as a profit model, a business system in delivery and a learning system.
The focus of analysis is on learning, which is the firm rating system (Boons & Lüdeke-Freund, 2013). It justified its arguments with
the examples of Toyota and Google. Their argument is based on the people who
are working in the companies to learn, deliver and realize the strategic
intentions of the executives are the essence of the model of business. The
significance of the organisational development cannot be denied. It is based on
the framework for development linking the elements of the model as well as
influence between the elements connected. The company’s learning system with
the activity perspective of the framework and the customer’s perspective with
the delivery system. Among the entire activities value proposition is in the
centre (Barquet et al.
2013).
The article that helped to understand the business model the most is of
the sage publication house UK and the Elsevier article. It concentrated on the
different keywords and the innovation of the business concept. The Elsevier
article has discussed the business models along with its strategy and
innovation process which became useful for the research paper. There are
various barriers to imminent the business models which also likely helped in
evaluating this research paper.
The innovation in the business models have
widely opened up to hyper-connection and high density over the years. It can
easily predict the future innovations regarding business as he catalogs its
emergence that are concentrated in various groups. The premises are not of
created value and needs to be removed. The models can serve two or more markets
at the same time. Lately, the global business is soon opening up that will
generate international level growth. Its importance will focus on the
developing innovation, as well as the virtuous promoting circles, which is the
primary goal of the good business model.
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