2. GROWTH & OPEN
BUSINESS MODEL
The business model provides a
coherent framework that takes
technological characteristics
and potentials as inputs, and
converts them through
customers and markets into
economic outputs1
.
A business model has two
functions:
1.Value creation
2.Value capture
6. The business model mediates between
technical and economic domains
Over the years, entrepreneurs have been mostly known for technical
innovations. And there are many great companies that have been built on top
of technical innovations like Intel, Cisco, Oracle, Apple, and arguably
Microsoft. If you think of Federal Express, Google, Netflix, these companies
were built on business model innovations.
Business Model:
• market segment
• value proposition
• value chain
• c/profit mechanism
• value network
• competitive strategy
Business Model:
• market segment
• value proposition
• value chain
• c/profit mechanism
• value network
• competitive strategy
Economic
Outputs:
e.g.,
value,
price,
profit
Technical
Inputs:
e.g.,
feasibility,
performance
Measured in technical domain Measured in economic domain
7. Focus in Business Model
A business model is a conceptual tool that contains a big set of elements and their
relationships and allows expressing the business logic of a specific firm. It is a
description of the value a company offers to one or several segments of customers
and of the architecture of the firm and its network of partners for creating,
marketing, and delivering this value and relationship capital, to generate
profitable and sustainable revenue streams.
9. Portfolio of Capabilities
& Business Model
Open
Capabilities
Dynamic
Capabilities
Operational
Capabilities
Technology
Capabilities
Portfolio
10. how do you measure the
success of a business model?
11. Revenue Growth, Life Cycle &
Innovation Dynamics
Business model innovation has captured the attention of executives tasked with achieving
growth in the face of increasing competitive pressure. Business model innovation suggests
that if you took an existing product and repackaged how you sold it, you can hold off
competitive pressures and even capture entirely new market segments.