Business Model and Disruption

Running head: BUSINESS MODEL AND DISRUPTION 1
Business model and disruption
Name
Institution

BUSINESS MODEL 2
BUSINESS MODEL AND DISRUPTION
Definition
The business model is the unique innovation an organization, entrepreneur, and
companies employ that fits into their view of business so as to increase the operational scope of
the company. The business model adopted by a company is aimed at maintaining the
organization for a long period of time ad versing the different market conditions that might
come. The business model targets customers, solutions to various company stalemates, the best
areas to venture e.g. youth programs. There are different types of business models. Business
models vary from organization to organization. Some of the commonly used business models
are; direct sales, franchise model, freemium model and subscription model.
A company feeling it’s not serving the purpose it should and does not get profits should
change their business model. Business environment might change a particular time making it
necessary to change the model. There could be new government policies that include tax rates.
Such factors are called business disruptions. Business disruptions are factors that influence the
business models of a company both in the negative and positive ways. This enables the business
to suit the rapidly changing business environment (Bocken, Short, Rana & Evans, 2014). These
disruptions include; change of culture, globalization, and customer dependency, among others.
This is according to Harvard business review and literature.
Smart Products and the Dominion Bank
Smart products can act as disruptions to companies in conducting their business. The
products affect business models of great companies for instance. Commonwealth bank that
provides finance and banking services in Australia. The disruption of smart products influence
opportunities in the market or disadvantage them.

BUSINESS MODEL 3
Smart connected products have many, of these physical components that influence the
decision of the company through soft wares updates, and made through to services to continually
improved and optimized with the visits to the leader.
The competitive landscape reshaped by smart products in the positive way include;
Monitoring
Customer accounts are easily monitored by the account owners and the bank. The
customer can receive bank services from anywhere they are not necessarily on the bank
premises. Assisted by the use of a smartphone as a form of a smart product.
Control
The bank makes software in places where the bank services are needed and a premise is
still far-fetched to put. An ATM machine controlled by the bank to provide banking services to
customers. This is a form of the smart product.
Autonomy
The bank uses self-coordinated smart products that help customers get round the clock
services. The machines that are forms of smart products are self-automated and can on their own
balance the accounts, calculate profits and detect any imbalances. These even make work easier
for the bankers.
The smart products influence the decisions in the following ways;
Since there are deeper relationships between the company and customers created
by the smart products. The company has to improve their market strategies and accountability to
the customers in order to maintain the company’s stability. Possible account delays should be
avoided with the 24-hour customer service.