Business Model and Big Data Impact
Added on 2020-03-02
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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT Innovation and Sustainable Business DevelopmentName of the Student:Name of the University:Author’s Note:
1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTBusiness model is an integral model which is used to analyze the economic andtrading behavior. It can be referred to as a statement, a representation, a conceptual modelor a description, a structural template or a conceptual tool. It is a concise and a clear wayto show the operation of a business. The companies must try to support the customers andcreate a stronger value proposition in comparison with its competitors (Zott, Amit &Massa 2011). The business model is also used to depict the various types of methodswhich are used by the companies for the generation of revenues. This can be carried outby selling different types of service contracts of various products, selling a particularproduct or charging different kind of subscription fees. Business model is very importantfor a startup company and it is the first and the foremost thing which needs to bedeveloped even before the development of the product. This type of model helps indemonstrating the feasibility of the business venture (Zott & Amit, 2010). The companiesmay also sometimes adopt the business models which are used by other companies indifferent industry. The companies also change the business model as per theirrequirement to increase the generation of the revenue. Sometimes, it is see that somecompanies change their business model very frequently and this is due to the constantchange in the actions of the competitors who are capturing the market with improved andbetter model. It can be said that a business model is a conceptual tool which containsvarious objects, relationships and concepts which are used in expressing the businesslogic of a business venture (Bocken et al., 2014).The development in information and communication technology has facilitatedthe expansion of the internet and thus there were new developmental processes. When
2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENTreferring to the notion of e-Business, there are certain models which are involved such asthe brokerage model, merchant model, advertising model, subscription model,community model and many more. There are various types of generic e-business modelssuch as e-procurement, e-shops and varied third party services (Kastalli & Van Looy,2013). Moreover, there are various components of e-business model such as logisticstream, value stream, revenue stream, profit stream and many more. The model of e-business is based on certain classes such as the participants, flows and relationships. Thevalue map of the e-business model is used to depict the operation of a business venture.The activity in the business firm model is referred to as the engagement of physical,human and varied types of capital resources which are used in the business model by thevendors, customers and the local firms for fulfilling the purpose of the business venture.The activity set can also be called as a set of activities which are related to each other andit concentrates on the focal firms (Miller, McAdam & McAdam, 2014). The content ofthe activity system helps in the selection of varied kinds of activities and the structureshows how these activities are linked with each other. The system of governance of theseactivities refers to those individuals who perform them. Business model can also bereferred to as a cost revenue architecture which is very much useful for the innovativeand the technological scholars who are likely to explain the various mechanisms andwhich allows the firms for the commercialization of various kinds of technologicalinnovations (Brock et al., 2014). Business model shows how a firm carries out various kinds of business activitiesand how it delivers its business to the stakeholders. The model also shows how to addressthe various kinds of issues and helps the managers in the creation of design. The adoption
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