Business Models and Strategy

Business Models and Strategy

• A business model describes the design or architecture of value creation, delivery, and capture mechanisms employed by a business enterprise.
• The essence of a business model lies in defining how the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.

Key Components of a Business Model

• A business model articulates the logic and provides data and evidence to demonstrate how a business creates and delivers value to customers.
• It outlines the architecture of revenues, costs, and profits associated with delivering value to customers.

Business Model Design

• Good business model design is crucial to building a sustainable competitive advantage and achieving super normal profits.
• The key question in business model design is how to build a sustainable competitive advantage and turn a super normal profit.

Innovation

• A product innovation is the introduction of a new or significantly improved good or service with respect to its characteristics or intended uses.
• Examples of product innovations include improvements in technical specifications, components, materials, incorporated software, user friendliness, or other functional characteristics.

Types of Innovation

• A process innovation is the implementation of a new or significantly improved production or delivery method.
• Examples of process innovations include significant changes in techniques, equipment, and/or software.

Steps to Achieve Sustainable Business Models

• Questions to ask about a provisional business model are important to ensure its sustainability.

Business Models and Strategy

• A business model describes the design or architecture of value creation, delivery, and capture mechanisms employed by a business enterprise.
• The essence of a business model lies in defining how the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.

Key Components of a Business Model

• A business model articulates the logic and provides data and evidence to demonstrate how a business creates and delivers value to customers.
• It outlines the architecture of revenues, costs, and profits associated with delivering value to customers.

Business Model Design

• Good business model design is crucial to building a sustainable competitive advantage and achieving super normal profits.
• The key question in business model design is how to build a sustainable competitive advantage and turn a super normal profit.

Innovation

• A product innovation is the introduction of a new or significantly improved good or service with respect to its characteristics or intended uses.
• Examples of product innovations include improvements in technical specifications, components, materials, incorporated software, user friendliness, or other functional characteristics.

Types of Innovation

• A process innovation is the implementation of a new or significantly improved production or delivery method.
• Examples of process innovations include significant changes in techniques, equipment, and/or software.

Steps to Achieve Sustainable Business Models

• Questions to ask about a provisional business model are important to ensure its sustainability.