What Is A Business Model?

Summary: What is a “Business Model?”

    1. Not
      1. MBA Jargon.
      2. A prototype of a venture.
      3. Meaningless management speak.
      4. Corporate fashionista.
    2. Business Model
      1. A way to understand organizations.
      2. As systems.
      3. That have common components.
    3. To understand an organization’s business model – think about
      1. What value it creates?
      2. Who it serves?
      3. What sets it apart?
      4. What resources it depends upon?
      5. Its crucial relationships.
      6. The channels through which it delivers value.
      7. How it generates money?
      8. What it spends money on?
    4. Business model innovation
      1. Not just about changing what you sell.
      2. It is about continually re-evaluating.
        1. What value you create.
        2. With whom you collaborate.
        3. Who you are?
        4. How you capture value?
        5. How you work?
        6. How sustainable you are?
    5. Modern business is a continual re-evaluation.
    6. Modern managers must become adept at “ambidextrous thinking.”
      1. Exploiting their current business model.
      2. While also exploring new business models.
    7. Exploit + Explore
    8. In an era of rapid change, organizations either.
      1. Adapt.
      2. Or die.
    9. Embrace the change!

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