Google's Data-Driven Business Model
Added on 2020-02-24
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Running head: BUSINESS MODELBusiness ModelStudent NameUniversity nameAuthor Name
BUSINESS ETHICSBusiness model can be defined as the conceptual structure that helps the organization toachieve its mission, purpose and organizational goal. Business models are designed in order tocreate the value and distribute it in a profitable way. The business models acts in between thetwo poles of classification and taxonomy (Baden-Fuller & Morgan, 2010). Zott and Amitoppose the idea of a general business model, as each business works in a very differentindividual way. The business model’s classificatory function depends on the scale models andshort-hand definitions (Zott & Amit, 2010). In an effective business model the role model andscale model come together and the internet based Google business model is one such example. The concept of business model is getting huge attention because of the internetrevolution. Many scholars use the term in order to define as how the internet transformed thetraditional business models (Laudon & Traver, 2013). The emergence of e-commerce hasmotivated the scholars and business professionals examine the business models of theirorganizations.Figure: Business Model Formation ( Source: Made by author)A coherent framework is achieved through the business model which helps theorganization to gain financial output. Therefore business model can be described as an abstractmodel that connects business processes and strategies. Organizations often confuse businessArticulatingthe valuepropositionIdentifyingthe market Profitpotential andcoststructureOrganization’s positionin the valueConnectingthesuppliers,customersFormingcompetitivestrategies
BUSINESS ETHICSmodel with revenue model (DaSilva & Trkman, 2014). Revenue model is a part of the businessmodel which only describes the volume of the revenue, its sources and distribution. Carl Jung developed the idea of business model archetype. He describes archetypes is somethingwhich possess certain qualities that others follow and inherit to develop their own. There arebusiness models with fundamental business qualities that provides others good structural base foreffective business (Zott, Amit, 2010). The electronic communication has changed the business model significantly. The informationtechnology is at the core of e commerce. Before the emergence of e-commerce the organizationscould not maintain close relationship with suppliers as the system was stand alone and high costbased. The e commerce technologies provided huge capabilities to the companies withconnectivity, interactivity, openness and transparency which led the company in direct exchangeof information among organizations (Barney & Ray, 2015). The supplier integration resulted incustomer satisfaction and influenced the business model overall. Many enterprises utilized the e–commerce opportunity to develop new business models. Through innovate new business models the companies put substantial efforts in generate highrevenue. The new business model helps them to improve the product and service quality;however the innovation of new business model requires ample time, research and hugeinvestment. A survey by EIU or Economist Intelligence unit highlights that Majority of thecompanies now prefer innovative business models over new service or products (Bashir &Verma, 2017). They believe that the new model is more effective than the others to give thecompany more competitive advantages. Another survey by IBM also demonstrated that the
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