Understanding what Business Model is
The business model is basically a company’s plan or strategy which is geared to make profit. It specifically identifies the products or services that a said business plans to sell, its intended target market, expected expenses, and revenue.
It helps to describe how a business intends to create, deliver and capture value in all business contexts.
To different organizational levels, business models play unique roles.
For new organizations, a good business model helps them to attract and motivate the right skills and talent and attract investors.
To the already established business, the business model further exposes or regularly informs them on how best to update their business plans so as to measure up with competitors and not fall below the expectation of their customers.
Types of Business model frameworks
- Industrialization of services business model
- Business Model Canvas
- Business reference model
- Component business model
Business model innovation
What is business model innovation?
Business model innovation is the process whereby an organization creates or implements new business models. Most of the time, a continuous business model innovation helps to increase an organization’s resilience capacity to environmental changes which in the long run becomes its competitive advantage.
In conclusion, having understood what a business model is, you will do well to create one for your organization.
In the next article, you will understand the importance of a business model to your business.
By Gracefield Maxcot
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