Drawing on extensive research they ran over the course of the last decade, the authors define an organization's business model as a system of interconnected and interdependent activities that determines the way the firm "does business" with its customers, partners and sellers. In other words, a business model is a package of specific activities -an activity system- conducted to satisfy the perceived needs of the market, together with the specification of which parties (a firm or its partners) conduct which actions, and how these activities are linked to each other.
Changes to business model design may be subtle, the authors note when they may not have the capacity to interrupt an industry, they can nevertheless afford significant benefits to the innovator. What perceived needs can be fulfilled through the brand new model design? 2. What new activities are needed to fulfill these perceived demands? 3. How could the required activities be linked to each other in new ways? 4. Who should perform each of the tasks which are part of the business model? 5. How is value created through the innovative business model for every one of the participants? 6. What sales model fits to appropriate section of the overall value it helps create with the company's business model?
PUBLICATION DATE: April 01, 2012 PRODUCT #: SMR415-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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