Business Model

Early in the 20th the 1950s was put forward the concept of "business model", but it wasn't until after 40 years (1990) did not become popular. Thai holmes define business model is refers to a complete product, service and information system, including every participant and its in which the function, and each participant the potential benefits and the corresponding source of revenue and the way. On the analysis of the business model process, the main concern category enterprise in the market and customers, suppliers and other cooperation do relation, especially between logistics, information flow and cash flow.

summary

Business model has become hanging on the side of the mouth of entrepreneur and venture investors a noun. Have a good friend Model, success will have half the guarantee. Business model is the company through what way or the ways to make money. In short, beverage company to make money by selling drinks, Express company by Courier to make money; Network company through clickthrough rate to make money; Communications company by receiving tariffs make money; The supermarket by platform and warehouse to make money, and so on. As long as there is money the son, have business models exist.

Business model is a relatively new nouns. Although it first appeared in the 1950s, but until the 1990s began to be widely used and spread.

Business model is a kind included a series of elements and their relationship of conceptual tools, used to illustrate a particular entity business logic. It describes the company can provide the value and the company's internal structure, partners network and Relationship are etc for realizing (create, merchandising and delivery) this value and generate sustainable profitability income elements.

In the literature use business model of this one noun, often blurs two different meanings: one kind the author simply use it to refer to how your company is engaged in the commercial concrete methods and pathways, another kind is the author puts more emphasis on the model of meaning. This both is essentially different: former referring to a company engaged in commercial way, while the latter refers to this way of generalization. After a view supporters of the proposed some by elements and their relationship between composition of ReferenceModel used to describe the company's business model.

Reference model

In the comprehensive concept of various common was put forward on the basis of a contain nine of the elements of the reference model. These elements include:

Value Proposition: namely through its products and services to provide consumers with Value. Value proposition confirmed company for consumer's practical significance.

However Target: namely company provides targeted by consumer groups. These groups have some similarities, thus enable the company to (according to these common) create value. Define consumer groups process is also called MarketSegmentation.

Ever Channels: namely the company to contact the various approaches to consumers. This paper analyzes the company how to exploit market. It involves the company's marketing and distribution strategy.

However toolbar: namely company with its consumer groups established between the contact. We say however Relationship Management is related to this.

ValueConfigurations: namely resources and activities of configuration.

CoreCapabilities: namely company to execute its business patterning ability and qualification.

A: the company namely sino-partner with other company between to effectively provide value and realize their commercial formed relations of cooperation Network.

By the follies practices: namely using tools and methods of monetary description.

Making Model: namely company through various worldwide blunt to create wealth approach.

Successful characteristics

Any business model is a by the customer value, the enterprise resources and competence, profit form of 3d model.

By the harvard professor Mark Johnson, Clayton Christensen and SAP company CEOHenning Kagermann written jointly "business model innovation white paper" the three elements can be summarized as follows:

"The customer value proposition", point in a given price on enterprise to its clients or consumers provide services or products needed for tasks.

"Resource and the production process", namely support customer value proposition and profit model of concrete operation mode.

"Profit formula", namely enterprise to realize economic value for shareholders of the process.

Engaged in business model research and consulting of accenture thinks, successful business model has three features:

First, successful business model provides a unique value. Sometimes this unique value may be new thinking, And more, it tends to be unique combination of products and services. This combination can either to provide additional value. Either make the customer can lower the price to get the same interests, or use the same price get more benefit.

Second, business model is difficult to imitate. Enterprise through to establish their own distinctive, such as to the customer care and incomparable implement ability, will raise trade the entry threshold, thus ensuring the profit source are inviolable. For example, direct sales model (mere "marketing" bit of, still cannot say that it is a commercial mode), everyone knows how it works, also know dell is direct benchmarking, but it's difficult to copy dell's mode, the reason is that "marketing", is behind a complete, extremely hard copy of resources and production process.

Third, successful business model is down-to-earth. Enterprise to make ends meet, the balance of payments. This seemingly self-evident truth, want to be the year after year, day by day, but it is not easy to do. Reality of many enterprises, no matter be traditional enterprise or a new enterprise, for their own money earned from where, why customer fancy himself enterprise products and services, and even how many customers can not actually lead to the company profit, but in erosion enterprise's income, and other key issues, are not well understood.

Accenture put forward three characteristics and SAP put forward three key elements are mutually, sealed primers.

The historical development

1, the Shopkeeper Model

Generally speaking, servicing business models than manufacturing and retail business models more complex. The oldest and most basic business mode is "Model", bit more specific Shopkeeper said, be in namely with potential consumer group of place open stores and show their products or services. A business model that is to an organization to exercise their functions are described, and its main activity is the followings generalizations. It defines the client of the company, products and services. It also provides about how your company organization, as well as generation and earnings of information. Business model and (company) strategy together, the company's main policy leading. Commercial mode also describe the company's products, services, customer market and business process.

Most business models are dependent on technology. Internet entrepreneurs invented a lot of new business model, these business mode depends entirely on existing and new technology. Use technology, enterprises are able to a minimum cost, access to more consumers.

2, Bait and hooks mode

With the progress of The Times, business model is also becoming more and more exquisite. Bait and hooks mode - also called Razor Blades mode, and Tied the Products or model -- appeared in the early 20th century. In this mode, the basic product sale price is extremely low, usually in the red state; And the related consumables or service prices are very expensive. For example, razor blades (bait) and (hook), cell phone (bait) and call time (hook), printer (bait) and ink cartridges (hook), camera (bait) and photos (hook), etc. This model also has a very interesting deformation: the software developers distributed free their text reader, but for its text editor pricing as opposed to hundreds of dollars.

3, other modes

In the 1950s, new business model is by McDonald 's and Toyota built, In the 1960s innovators Wal Mart and is ypermarkets; - Arrived in the 1970s, a new business model is appeared in the FedEx Toys "R" US express and toy store business, The 1980s was Home Depot, Blockbuster, Intel and Dell, In the 1990s, Southwest Airlines is Netflix, eBay, amazon.com and star Starbucks. Without well-considered commercial mode is the many dot - com a serious problem.

Every business model of innovation can bring to the company in certain period of competitive advantage. Yet as times changed, the company must constantly rethink its commercial design. As (consumer) value orientation from a industrial transfer to another industry, companies must constantly changing their business model. A company's success or failure depends on its commercial design meets the consumer's priority demand.

Some scholars and experts tried to business model for the systematic classification. Earliest this experiment of the people who Rappa Timmers and.

Business model and innovation

Profit is every company needs to consider the first problem, but also people are interested in the topic. Profitable way? And is easy to understand, also are profitable method, profit of thought. So, our enterprise management of the way? Lu xun say of good: "in fact the ground and had no way, walk of person many, there is also a way." In the enterprise growing, lu xun's epigrams gives us strength, we must encourage positive efforts, and the courage to explore and path.

In all of the innovation of commercial mode innovation belong to enterprise most primordial innovation. Leave commercial mode, other management innovation, technological innovation is lost a sustainable development may and earnings basis. All the success of big businesses start enterprise grasps the successful business model step by step up. We say, wal-mart is actually open at the grocery store, Coca-Cola is selling pop, Microsoft is selling software, gome is open electronics shop, little sheep is open hotpot restaurant. These ordinary industry successful show? Actually that a truth: no matter the high-tech, low technology, can be successful, the key is you to find a successful business model, and the business models profitability rapidly develops acme.