Business Model: Value Creation, Innovation, and E-Business

This essay provides an in-depth analysis of business models, focusing on concepts such as value creation, innovation, and their application in e-business contexts. The essay explores various business model archetypes, activity systems, and cost-revenue architectures, emphasizing their roles in generating revenue and achieving competitive advantages. It examines how innovation is crucial for business success, particularly within companies like Lidl, and how strategic planning and the use of big data tools can drive value creation and address static and dynamic business challenges. The essay also touches upon the importance of aligning business models with the overall strategic goals of an organization, highlighting the need for continuous improvement and adaptation to market changes. The student utilizes academic literature to support arguments, providing a comprehensive understanding of business models and their implications for real-world business operations. This essay is a comprehensive exploration of business models, innovation, and strategic planning, offering valuable insights for students and professionals alike.

Business Models

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Concepts of Business model.......................................................................................................1
Innovation in the company because of various factors...............................................................1
Various business models involved to the notion of an e-Business.............................................2
Conceptualisation of the business Models..................................................................................3
Used to solve static and dynamic issue......................................................................................4
Brief conclusion Taking an example...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business models is a plan for the operations which are successful for the business as it
assist in identifying the sources of revenue. It includes the detail of financing as well as intended
consumer base which assist in increasing productivity (Doleski, 2015). Business model includes
the broad range of description whether it is formal or informal which assist in representing the
aspects of business such as purpose, target consumers, strategies, organisational structure as well
as operational processes should be used. Present report is based on Lidl is a global discount
supermarket chain. In the below mentioned report, discussion on the concept of business model.
TASK
Concepts of Business model
A business model helps in making a clear picture so that business can be operate in a
better manner. When, business entities using appropriate business model then this will help in
providing the values to their service users. If they are using best model then this will assist in
making value proposition so that revenue growth along with the profitability can be expanded.
Business models should used by manager of Lidl which helps the firm in generating more
revenue. Innovations on business model should depend on opportunity so that they can transform
the value proposition as well as revenue model of which helps in improving the thinking by
using system which is related to human value (Afuah, 2014).
Innovation in the company because of various factors
In Lidl, innovation is necessary on business models as it helps in creating a new path to
attain the success. Creation of wealth is the important function of business entity and it helps in
designing economic changes which having a potential locus of innovation. When they design the
appropriate business model then entrepreneur should include appropriate information as well as
communication technologies (Casadesus-Masanell and Ricart, 2010). Manager of Lidl should
focus on competitive advantages from new venture as well as their internal stakeholders.
Business models are adopt by employers which will helps in describing and classify the business
so that they can explore the capabilities for improvement or development in future. There are
various functions of business model which includes in articulating the value proposition,
identifying the market segment along with the revenue generation mechanism for Lidl. This will
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assist in defining the structure of value chain and estimating the cost structure and potential of
profit (Casadesus-Masanell and Tarzijan, 2012).
Various business models involved to the notion of an e-Business
There are different business models which refers to the notion of e-business archetype,
activity system as well as cost revenue architecture. Business model archetype having a purpose
which describe the function of business in the overall market. It includes inputs or dependencies,
target consumer base as well as value which is created on behalf of consumers. This will aid in
understanding the functions of Lidl and evaluate the strength, weakness, opportunities along with
the threats and compare with other business which will helps in identify about the another similar
company and on that way they can attain their goals. This model helps in providing or delivering
the conceptual framework so that they can grasp possible opportunities (Zott, Amit and Massa,
2011).This model helps in providing or delivering the conceptual framework so that they can
grasp possible opportunities. With help of this model Lidl company can able to attain its
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Illustration 1: Concepts of e- Business
(Source: - What Is A Business Model?, 2010)

determined goal in an appropriate manner. With help of this model, profitability and revenue can
gain by the company.
Another business model is an activity system which is a set of different organisational
activities which are interdependent with each other and centred on a focal firm. Along with this it
includes all those activities which are conducted on a focal firm, its partners, vendors along with
the consumers and so on these are the functions which are performed by Lidl or their suppliers,
partners as well as consumers which is a essence of the business model design (Chen, Cheng and
Mehta, 2013). In addition to this is business model as a cost revenue architecture which focuses
on the sustainable and predictable profits. Revenue growth is a primary driver of the shareholder
value which provides the different condition so that they can make the changes to become
successful and at that time they are facing different challenges which includes new strategies
requires new go-to market as well as technology which disrupts the buying and selling process in
Lidl. The changes which are done in the market and this disrupt the value positioning. Along
with this it helps in misaligned the marketing and sales of business entity (Pels and Kidd, 2015).
Conceptualisation of the business Models
Conceptualisation of business models helps in analysing the problems with the
development on a theoretical basis. Models refers to the content, structure as well as governance
of transactions which assist in making proper designing so that they can create a value by the
exploitation which is related to business opportunities. While doing the transaction in Lidl
appropriate goods and information should be exchanged along with the resources as well as
capabilities so that they require enabling the exchange (Apostolou and et. al., 2011). Governance
of transaction refers to various ways in which they can transmit or exchange the information,
resources along with the goods which are controlled by the parties.
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The conceptualisation of business models which encompasses the efficiency of transaction
which includes the structure as well as governance by using resources and capabilities. There are
two type of notions which are included in value creation that is static as well as dynamic value
creation. In the static creation of value, it focuses on the single time period. Where as in
dynamic, increment in stock market value of Lidl. A dynamic framework helps in creating the
new value so that they can distribute in the different ways which are based on competition,
bargaining power, legal rights and so on. The conceptualisation of value creation helps in
identifying the good empirical measures. They have to use appropriate model and tool so that
they can access value capture (Kolmos and Holgaard, 2015). Conceptualisation of business
models helps in analysing the problems with the development on a theoretical basis. Models
refers to the content, structure as well as governance of transactions which assist in making
proper designing so that they can create a value by the exploitation which is related to business
opportunities. With help of these model, corporation can easily take an impressive decision about
the business activities and functions. Manager can also beneficial to analyse the situation of
business and take the decision accordingly.
Used to solve static and dynamic issue
A business is a person which helps in doing the regular occupation, profession along with
the trade. Along with this it helps in doing the different commercial activities as well as
exchanging the buying and selling of Lidl. It is a organised efforts of individuals who produce
and sell their goods so that they can generate more profit and also satisfy the society needs.
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Illustration 2: Conceptualisation of business models
(Source: - Viitanen and Kingston, 2014 )

Along with this when they deliver proper satisfaction then this will helps in identifying the goals
of the firm. They have to use appropriate strategy which helps in providing appropriate products
and services so that they become successful in meeting the needs of society (Holtgrewe, 2014).
Changes is necessary in the business entity as it helps in encouraging the person as well as
attracting large number of consumers. change refers to the learning, growth along with the
achievement of new things. When manager of Lidl making changes which is inevitable as it
assist in creating efficient, authoritative. It focuses on simplification in designing as well as
apparently aesthetic matters. When they are making the changes in the actualities or business
models it assist Lidl in fulfilling the demand and boost the performance in the market. With help
of these model, company can bale to solve static and dynamic problem in the business. Along
with this it helps in doing the different commercial activities as well as exchanging the buying
and selling of Lidl. It is a organised efforts of individuals who produce and sell their goods so
that they can generate more profit and also satisfy the society needs.
Strategic plans are important for the business and the owners of business entity helps in
including information in document so that they can modify the changes in environment which
requires the shifts in direction of business entity (Viitanen and Kingston, 2014). It is necessary as
well as essential that they are having a appropriate process so that they can monitor all the
change along with this incorporating the changes and also putting more effort for the planning of
Lidl. They have to do appropriate work which shows the establishment as well as
implementation of proper policy as well as decisions which will help in influencing the
leadership along with the management of business entity. It includes the review of existing
policies, strategies as well as standards which will assist in attaining the performance
management as well as accomplishment of goals in the system (Anttiroiko, Valkama and Bailey,
2014). In the decision making of managers or leaders of Lidl assist in attaining best result so that
success can be attain, scope of their choices along with the inherent risk of different options and
according to that targets can be attain. With assistance of strategic plan, manager and other
authority can take the effective decision because in this process, they can able to revise their
system, business structure, policies etc.
For understanding the different theories and policies and to analyse them it is a complex
process which helps in driving the value creation. It is different from the strategy of business
level and it should be measured. For example, develop, improve as well as test hypothesis which
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having a adverse impact on business model design on the basis of value creation. It having a
differential impact under various resource regimes along with the potential diseconomies of
scope in designing (Stark, 2015). Hence, business model helps in doing the appropriate research
whether it is theoretical and empirical. They have to use appropriate big data or technology then
it will leads to change. Business always include the fact based decisions which is based on
demand and knowledge for growth of big data tools along with platforms. Big data assist in
making the changes in the way businesses compete as well as operate. They have to derive the
value from their data which will having a distinctive advantages over their competitors so that
they become successful in removing the performance gap which will assist in continuing to grow
so that relevant info can be generate, emerging technologies as well as digital channels helps in
development (Bhasin, 2012).
Research based on the models which is related to business, at that point, could profit by a
meeting of the field to a typical comprehension of the build, through both hypothesis
improvement and observational research. Agreement on the hypothetical establishment and key
properties could prompt the development of comprehensively acknowledged typologies of plans
of action, which are right now deficient. Additionally examine on the connection between the
business and income models of firms is expected to broaden both hypothesis and practice. Such
research will help develop our comprehension of the linkages between esteem creation and
esteem apportionment. Experimental research on the estimation of models which is to be
configured, organized to catch all lines of an association's business that have income potential,
holds extraordinary guarantee to upgrade our comprehension of plans of action. While using or
evaluating the dynamic and appropriate model, then this helps in finding out that how they
emerge in the market. Along with this it has been determined that by using different and relevant
business models they can deliver best products and services in a appropriate time by using
effective strategy and organisational design which reflects the research program so that they can
do proper analysis for the understanding of value creation.
Brief conclusion Taking an example
Another business model is VCA model which the manager of Lidl can use for the value
creation as well as distribution. It requires the profit of economic and it is equal to the sum of
gain which is appropriated by the different stakeholders. The company having a lack of value
creation where as appropriation of value should be indeterminate. For the managers along with
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the shareholders, profit growth is the main objective. By the return of shareholders it represent
the value transfers from one stakeholders to another rather than creating the value. It will help in
increasing the competitive advantage which leads to the economic gain. Lidl should do
innovation in their existing products and services as it assist in boosting the performance. It is a
important aspect which helps in increasing the shareholder return for all stakeholders. When
managers and employees of business entity doing the comparison among business model which
the company is using and VCA model then it aid in identifying current level of value creation so
that they can expand the firm inputs and outputs (Innovative Business Models Map, 2017). This
model having some advantage and disadvantages includes:
Benefits:
 It requires the data for estimating which are available for the firms.
 Measurement of the firm's performance.
Drawback:
 Innovation and replication is a specific type of economic gain which is attributable to the
changes of firm level.
CONCLUSION
After summing up assignment, it has been interpreted that by using appropriate business
model, manager of Lidl can create the value by using appropriate technology helps in attaining
the advantages which having a appropriate key factor so that they can give proper contribution in
reaping the success. They have to make changes in the business entity which helps in attracting
large number of consumers and deliver best products so that they can attain maximum
competitive advantage. After making changes appropriate promotional strategies should be used
and also maintain quality of products while transactions.
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REFERENCES
Books and journals
Doleski, O. D., 2015. Integrated Business Model: Applying the St. Gallen Management Concept
to Business Models. Springer.
Afuah, A., 2014. Business Model Innovation: Concepts, Analysis, and Cases. Routledge.
Casadesus-Masanell, R. and Ricart, J. E., 2010. From strategy to business models and to tactics.
Long Range Planning. 43(2–3). pp. 195–215.
Casadesus-Masanell, R. and Tarzijan, J., 2012. When one business model isn’t enough. Harvard
Business Review (January–February). pp. 1–6.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Chen, S., Cheng, A. and Mehta, K., 2013. A review of telemedicine business models.
Telemedicine and e-Health. 19(4). pp.287-297.
Pels, J. and Kidd, T. A., 2015. Business model innovation: Learning from a high-tech-low-fee
medical healthcare model for the BOP. International Journal of Pharmaceutical and
Healthcare Marketing. 9(3). pp.200-218.
Apostolou, D. and et. al., 2011. A collaborative decision framework for managing changes in e-
Government services. Government Information Quarterly. 28(1). pp.101-116.
Kolmos, A. and Holgaard, J. E., 2015. Design of virtual PBL cases for sustainability and
employability. Global Research Community: Collaboration and Developments. p.312.
Holtgrewe, U., 2014. New new technologies: the future and the present of work in information
and communication technology. New technology, work and employment. 29(1). pp.9-24.
Viitanen, J. and Kingston, R., 2014. Smart cities and green growth: outsourcing democratic and
environmental resilience to the global technology sector. Environment and Planning A.
46(4). pp.803-819.
Anttiroiko, A. V., Valkama, P. and Bailey, S. J., 2014. Smart cities in the new service economy:
building platforms for smart services. AI & society. 29(3). pp.323-334.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1)
(pp. 1-29). Springer International Publishing.
Bhasin, S., 2012. An appropriate change strategy for lean success. Management Decision. 50(3).
pp.439-458.
Online
Innovative Business Models Map. 2017. [Online]. Available through:
<http://www.wrap.org.uk/resource-efficient-business-models/innovative-business-
models>. [Accessed on 22nd August 2017].
THE E-BUSINESS MODEL. 2017. [Online]. Available through:
<http://www.prudens.com/patens/ebusiness/busmodel.html>. [Accessed on 26th August
2017].
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