Business Model Innovation for Sustainability
Added on 2020-03-02
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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTInnovation and Sustainable Business DevelopmentName of the StudentName of the UniversityAuthor note
1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTIntroductionA business model is a concise and distinct way of picturing the way in which a businessoperates. It should be possible for the management to describe their business model in a fewsentences. It is the aim of every company to provide their customers with value. The stronger thevalue they provide, especially if compared with their competitors, the more probable it is that thecompany would have a large number of people purchasing from them. The business model is justa mean of translating the value proposition provided to customers into a potential for swiftrevenue growth. All the processes and policies of the business are a part of the business model.According to management expert, Peter Drucker (2017) a business model provides answers tothe following questions: Who is the customer? What does the customer value? How value isdelivered at an appropriate cost?DiscussionWith research streams contributing extensively to the business model concept, the streamthat has contributed the greatest attention to business models is e-business. E-business impliesdoing business electronically. It contains of e-markets, internet-based business, and e-commerce.It takes into consideration hose business that are carried out exclusively over the internet as aform of business that makes use of the potential present in the internet as a form of complementto a business’s existing operations. Only those business that are into commercial transactionswith their customers and business partners are considered as e-businesses, not counting thosewho just use websites for displaying their products and services that they are selling in thephysical world. The recent advancements in communication and information techniques, like theadvent and rapid development of the web and the swift degeneration in the communication andcomputing costs, have made it possible for the development of new and innovative ways of
2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTcreating and delivering value, which have provided scope for the generation of traditionalexchange mechanism and transaction architectures (Fielt, 2013). The overall aim of the business model of a focal firm is exploiting any businessopportunity in creating value for the involved parties. This aim is reflected in the consumer valueproposition and is characterized as a value creating insight that turns any firm. In these type offirms an activity in a business model is regarded as human engagement, physical and/or materialassets of any of the party to the business model, for serving any particular purpose for thefulfillment of the whole objective. An activity system is therefore a set of codependentorganizational activities focused on the firm, comprising those carried out by the firm, theirpartners, suppliers or consumers (Amit & Zott, 2012). In analyzing business models in terms of cost/revenue architecture, they can beaddressed in the domains of innovation and technology management. Two complimentary viewsdominate the domain: companies commercialize the new ideas and technologies with the help oftheir business models, and business models signify a new aspect of innovation that covers theconventional modes of procedure, product and structural innovation and even includes newforms of collaboration and cooperation. Business models not just entails outcomes fortechnological innovations, they even get shaped by them. Other than adopting business modelsfor facilitating technological innovation and management of technology, businesses also canconsider the business model as an origin of innovation in and of itself (Iacob et al., 2014).Exploring the seven components inside business model, scope, goal, key resources, keyactivities, value proposition, customer channels and customer relationship, resulted in a thoroughassessment on how the sensing, seizing and transforming competences of the firm can be madeuse of for bringing dynamism to every component and even to the whole organization’s business
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