What is business model summary

The shorter you can make your summary business plan, the better. You want to focus on just a few key elements of your business that will generate the most excitement among those reading it -- without requiring them to invest a weekend in doing so. You can always pass along a more detailed plan to those interested later.

What is business model summary

Gerry George and Adam Bock conducted a comprehensive literature review and surveyed managers to understand how they perceived the components of a business model. In further extensions to the design logic, George and Bock use case studies and the IBM survey data on business models in large companies, to describe how CEOs and entrepreneurs create narratives or stories in a coherent manner to move the business from one opportunity to another.

Summary of the GE Matrix. Abstract

They recommend ways in which the entrepreneur or CEO can create strong narratives for change. Since innovating firms do not have executive control over their surrounding network, business model innovation tends to require soft power tactics with the goal of aligning heterogeneous interests. As a result, open business models are created as firms increasingly rely on partners and suppliers to provide new activities that are outside their competence base [8].

In a study of collaborative research and external sourcing of technology, Hummel et al. Researchers codified their research into a sourcing business model known as Vested also referred to as Vested Outsourcing.

Vested is a hybrid sourcing business model in which buyers and suppliers in an outsourcing or business relationship focus on shared values and goals to create an arrangement that is highly collaborative and mutually beneficial to each. In the case of pipes, firms create goods and services, push them out and sell them to customers.

Value is produced upstream and consumed downstream. There is a linear flow, much like water flowing through a pipe. Unlike pipes, platforms do not just create and push stuff out. They allow users to create and consume value. Alex Moazed, founder and CEO of Applicodefines a platform as a business model that creates value by facilitating exchanges between two or more interdependent groups usually consumers and producers of a given value.

In an op-ed on MarketWatch, [16] Choudary, Van Alstyne and Parker further explain how business models are moving from pipes to platforms, leading to disruption of entire industries.

Platform[ edit ] There are three elements to a successful platform business model. This infrastructure enables interactions between participants. The Magnet creates pull that attracts participants to the platform.

For transaction platforms, both producers and consumers must be present to achieve critical mass. The Matchmaker fosters the flow of value by making connections between producers and consumers.

Business Model Innovation

Data is at the heart of successful matchmaking, and distinguishes platforms from other business models. Chen stated that the business model has to take into account the capabilities of Web 2. He suggested that the service industry such as the airline, traffic, transportation, hotel, restaurant, information and communications technology and online gaming industries will be able to benefit in adopting business models that take into account the characteristics of Web 2.

What is business model summary

He also emphasized that Business Model 2. In the context of the Software-Cluster, which is funded by the German Federal Ministry of Education and Research, a business model wizard [20] for software companies has been developed.

It supports the design and analysis of software business models.

What is business model summary

The concept of a business model has been incorporated into certain accounting standards. It is part of the business development and business strategy process and involves design methods.

Massa and Tucci [38] highlighted the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when the tooling company Hilti shifted from selling its tools to a leasing model.

They suggested that the differences are so profound for example, lack of resource in the former case and inertia and conflicts with existing configurations and organisational structures in the latter that it could be worthwhile to adopt different terms for the two. They suggest business model design to refer to the process of crafting a business model when none is in place and business model reconfiguration for process of changing an existing business model, also highlighting that the two process are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model.

Economic consideration[ edit ] Al-Debei and Avison consider value finance as one of the main dimensions of BM which depicts information related to costing, pricing methods, and revenue structure.The executive summary of the business plan needs to capture the reader's attention and get them reading the rest of the plan.

Here's how to write one. The executive summary of the business plan needs to capture the reader's attention and get them reading the rest of the plan. Business model - describe your products or services and and what.

Summary of the McKinsey matrix. Abstract

Executive summaries are a very elusive component to any business plan. Use this executive summary example as a model for writing your own. What is a 'Business Model' A business model is a company's plan for how it will generate revenues and make a profit. It explains what products or services the business plans to manufacture and.

Executive Summary. Reprint: RH. Drawing on the idea that any business model is essentially a set of key decisions that collectively determine how a business earns its revenue, incurs its costs. Platform Scale: How an emerging business model helps startups build large empires with minimum investment - Kindle edition by Sangeet Paul Choudary.

Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Platform Scale: How an emerging business model helps startups build large empires with minimum.

A business model isn’t something you build from the ground up. When management-types ask about a business model — as in, “So what’s your business model?” — they really want an answer to a much more direct and basic question: “How do you plan to make money?”.

What's Better? Lean/Business Model Canvas or Executive Summary? - StartupDevKit