01_Business Models

A Business Model synthesizes a way of creating value in a business. The concept refers to the description of the articulation between different Business Model components or “building blocks” to prduce a proposition that can generate value for consumers and thus for the organization.

In the process of new Business Model generation, the Business Model innovator can use one or more of these patterns to creating a new Business Model. Each of these patterns has similarities in characteristics, Business Model building blocks arrangements and behaviors.

Definition:

Design themes are configurations of transactional and organizational determinants and can be defined as the degree to which an organization´s elements are orchestrated and connected by a single theme.

• They span a multi-dimensional vector space (graphic)

Central idea:

• The higher the degree of configuration (score on the design theme scale), the better the organizational performance

Advantages:

• Synergy:

  All elements of a Business Model complement one another

  
  

• Clarity of direction and coordination:

  Every member of the Business Model share a clear vision

• Difficulty of imitation:

  Complex, tailored Business Model designs are dificult to copy

  
  

• Distinctive competence:

  Focusing on certain resources and efforts allows to act better than rivals in operations

  
  

• Commitment:

  Focusing on a certain Business Model design gives firm credibility and momentum

  
  

• No need for bureaucratic controls:

  No rules between competing design directions required

• design themes are more practical due to the infinity of number of types

  -> In order to localize a new Business Model that does not fit exactly to an existing type, one needs to define a new one

  
  

• In order to localize a new Business Model that does not fit exactly to an existing type, one needs to define a new one

Three different Business Model Perspectives:

• BM firm innovation: Significant change in the firms´s existing business model, only reconfiguration of existing patterns

• BM industry-innovation: Significant change to existing business model design that is new from the specific industry perspective, no competitor has similar business model

• BM market innovation: Significant change to existing business models that is new from the customer perspective