Design logic and narrative coherence

Design logic considers the business model as the result of creating new organizational structures or modifying existing ones to take advantage of new opportunities. Gerry George and Adam Bock (2011) interviewed managers to understand how they perceived the key concepts of business models. In their analysis, they showed that there is a design logic in the way entrepreneurs and managers interpret and explain their models. In 2012, using case studies and survey data from IBM, they described how CEOs and entrepreneurs create coherent narratives to move their businesses from one opportunity to another. They also demonstrated that when the narrative lacks coherence or its components are not aligned, businesses tend to fail.[8] Therefore, they recommend ways in which CEOs can build strong narratives to drive change.

Business models between companies that associate

Hummel et al. (2010) found that to choose business partners, it is important to ensure that the business models of both parties are compatible and complementary[9]​ For example, they found that it is important to identify and analyze the business models of potential partners and that it is advisable to find companies that understand our business model.[10]​.

The University of Tennessee conducted research on collaborative relationships in business. The researchers coded their research into a model known as Vested or Vested Outsourcing. Vested is a hybrid in which buyers or suppliers, within an outsourcing relationship, focus on the values ​​and objectives they share to create a collaboration that is mutually beneficial.[11]​.

Contenido

A partir de 2012, algunos investigadores han estudiado el modelo de negocio líquido.[12]​[13]​.

V4 BM Scheme

Al- Debei and Avison (2010) V BM Framework - four main dimensions that encapsulate 16 elements.[3]​.

Shift from linear models to platform models

Sangeet Paul Choudary (2013), distinguished between two families of business models in a Wired magazine article "Wired (magazine)").[14] Choudhry contrasts the linear model with the platform model. In the first case, firms create goods or services and put them on sale. Value is produced and consumed in a linear manner, like water flowing through a pipe. The second, platform model not only creates products and launches them, but also allows users to create and consume value.

Choudary,[15]​ Van Alstyne and Parker, further explained how businesses are evolving from linear systems to platform systems, resulting in the change of entire industries.

Business model platform

There are 3 key elements to a successful platform model.[16]​ The Toolbox creates a connection that makes it easy for others to connect to the platform. This infrastructure allows interaction between participants. The magnet attracts participants to the platform. For transaction platforms, both producers and consumers must be present. The Matchmaker fosters the flow of value through connections between consumers and producers.

Chen (2009) established that the business model has to consider the capabilities of Web 2.0 such as collective intelligence, network effects, user-generated content and the possibility of self-improving systems. He suggested that the service industry such as airlines, traffic, transportation, hotels, restaurants, information and communication technologies, could benefit from adopting business models that adopt the capabilities of Web 2.0. He gave the example of success of Amazon, who generate large profits through an open platform that supports other companies.[17]​.

Malone et al.,[18]​ found that some business models performed better than others using data from major US companies from 1998 to 2002.

The concept of a business model has been incorporated into certain accounting standards. For example, the IASB uses "an entity's business model for managing financial assets" as a criterion for determining whether those assets should be measured at amortized cost or fair value in its accounting standard for financial instruments. The Financial Accounting Standards Board also proposed a similar use of the business model to classify financial instruments.[19]​ The concept of a business model has also been introduced in the accounting of deferred taxes under the International Financial Reporting Standards.[20]​[21]​[22]​.

Diseño de modelos de negocio se refiere a la actividad de definir el modelo de una compañía. Es parte de los procesos de desarrollo y estrategia de negocios, e involucra métodos de diseño.

Business model definitions

Al- Debei and Avison (2010) consider financial value as one of the main dimensions that business models must include. With information regarding costs, methods for selecting prices and income structure. Stewart and Zhao (2000) defined the business model as “a statement of how a company will make money and maintain its income stream over time.”[23]​.

Osterwalder et al. [24]

May AndyBrown (1999), considers the business model as "the design of independent key systems that create and maintain a competitive business."[26]​.

Zott y Amit (2009), consideran el diseño de modelos de negocio desde ambas perspectivas (diseño de temas y diseño de contenido). Los temas de diseño hacen referencia a los conductores dominantes de creación de valor, y el contenido examina con mayor detalle las actividades a realizar, la vinculación y la secuencia con la que se llevarán a cabo las actividades.[27]​.

Theme design with emphasis on the business model

Developing a scheme for Business Model Development, Lim (2010) proposed the ESSO or Environment-Strategy-Structure-Operations model that takes into consideration the alignment of the organization's strategy with the organizational structure, operations and ecosystem factors in order to achieve a competitive advantage of cost, quality, time, flexibility or innovation.[28]​.

Content design with emphasis on the business model

The design of business models includes the modeling and description of:.

A distinctive characteristic of content design is its dynamic orientation: it not only describes the business model at a specific moment, but also contemplates the sequence of activities, the value logic over time and the ability to adapt to the environment. For example, a company can design a revenue model that starts with a basic rate and evolves towards a freemium offering with premium services. This type of progression must be reflected in the content of the model to be strategic.

Additionally, content design, as opposed to “modeling” which focuses more on graphical representation or process mapping, privileges the narrative of how components connect and evolve. A business model template or outline is a useful aid, but the real value lies in the story that is articulated: how the value proposition originates in a customer need, how the right channel conveys it, how the relationship is sustained, and how, in time, partners, resources, costs and revenues are aligned to maintain competitive advantage.

Business model design is different from business modeling. The first refers to defining the business logic of a company at a strategic level; while the second focuses on the design of business processes at an operational level.

A business model template can facilitate the process of designing and describing a company's model.

Daas et al. (2012) developed a decision support system (DSS) for the design of business models. In their study they developed a (DSS) to help the SaaS model in this process, based on a process guided by various design methods.[29]​.

Other examples of business models are:

Communities focused on technology have defined schemes to model businesses. These frameworks attempt to define a rigorous approach to business value. It is not known for sure how important these schemes really are for business planning. The schemes represent the central aspects of any company, they involve "how a company selects its clients, how it defines and differentiates its offers, tasks that it will develop and those that it will subcontract... it creates utility for clients and obtains profits."[37]​ A business scheme involves internal factors (market analysis; promotion of products and services; development of trust; social influence) and external factors (competition and technological factors).[38]​.

A review of business model schemes can be found in Krumeich et al. (2012).[39]​ Some schemes are:.

The business model design process is part of business strategy. Business model design and innovation refers to how a company (or network of companies) defines its business logic at a strategic level.

In contrast, companies implement their business models at the operational level through business operations. This refers to activities, processes, capabilities, functions, infrastructure, organizational structure, human resources and systems.

Consequently, an operationally viable model requires lateral alignment with business operations.[42]​.

The brand is a consequence of the business model and has a symbolic relationship with it since the business model determines the mission of the brand, and the brand becomes part of the model. Managing this is a task of integrated marketing.

The standard terminology and business model examples do not apply to most nonprofits, as their revenue sources are not the same. Instead, the term fund model is used[43].

The model is defined by the vision, mission and values ​​of the organization as well as its limits. —What products are you going to offer, what customers or market are you going to target, and what supply and distribution channels are you going to use. The business model includes high-level strategies and tactical direction as well as efficient implementation. It also includes annual objectives and goals that outline the specific steps the organization needs to take in the coming year to achieve the expected results. All of this information is likely found in internal documentation and is available to internal auditors.

Design logic and narrative coherence

Design logic considers the business model as the result of creating new organizational structures or modifying existing ones to take advantage of new opportunities. Gerry George and Adam Bock (2011) interviewed managers to understand how they perceived the key concepts of business models. In their analysis, they showed that there is a design logic in the way entrepreneurs and managers interpret and explain their models. In 2012, using case studies and survey data from IBM, they described how CEOs and entrepreneurs create coherent narratives to move their businesses from one opportunity to another. They also demonstrated that when the narrative lacks coherence or its components are not aligned, businesses tend to fail.[8] Therefore, they recommend ways in which CEOs can build strong narratives to drive change.

Business models between companies that associate

Hummel et al. (2010) found that to choose business partners, it is important to ensure that the business models of both parties are compatible and complementary[9]​ For example, they found that it is important to identify and analyze the business models of potential partners and that it is advisable to find companies that understand our business model.[10]​.

The University of Tennessee conducted research on collaborative relationships in business. The researchers coded their research into a model known as Vested or Vested Outsourcing. Vested is a hybrid in which buyers or suppliers, within an outsourcing relationship, focus on the values ​​and objectives they share to create a collaboration that is mutually beneficial.[11]​.

Contenido

A partir de 2012, algunos investigadores han estudiado el modelo de negocio líquido.[12]​[13]​.

V4 BM Scheme

Al- Debei and Avison (2010) V BM Framework - four main dimensions that encapsulate 16 elements.[3]​.

Shift from linear models to platform models

Sangeet Paul Choudary (2013), distinguished between two families of business models in a Wired magazine article "Wired (magazine)").[14] Choudhry contrasts the linear model with the platform model. In the first case, firms create goods or services and put them on sale. Value is produced and consumed in a linear manner, like water flowing through a pipe. The second, platform model not only creates products and launches them, but also allows users to create and consume value.

Choudary,[15]​ Van Alstyne and Parker, further explained how businesses are evolving from linear systems to platform systems, resulting in the change of entire industries.

Business model platform

There are 3 key elements to a successful platform model.[16]​ The Toolbox creates a connection that makes it easy for others to connect to the platform. This infrastructure allows interaction between participants. The magnet attracts participants to the platform. For transaction platforms, both producers and consumers must be present. The Matchmaker fosters the flow of value through connections between consumers and producers.

Chen (2009) established that the business model has to consider the capabilities of Web 2.0 such as collective intelligence, network effects, user-generated content and the possibility of self-improving systems. He suggested that the service industry such as airlines, traffic, transportation, hotels, restaurants, information and communication technologies, could benefit from adopting business models that adopt the capabilities of Web 2.0. He gave the example of success of Amazon, who generate large profits through an open platform that supports other companies.[17]​.

Malone et al.,[18]​ found that some business models performed better than others using data from major US companies from 1998 to 2002.

The concept of a business model has been incorporated into certain accounting standards. For example, the IASB uses "an entity's business model for managing financial assets" as a criterion for determining whether those assets should be measured at amortized cost or fair value in its accounting standard for financial instruments. The Financial Accounting Standards Board also proposed a similar use of the business model to classify financial instruments.[19]​ The concept of a business model has also been introduced in the accounting of deferred taxes under the International Financial Reporting Standards.[20]​[21]​[22]​.

Diseño de modelos de negocio se refiere a la actividad de definir el modelo de una compañía. Es parte de los procesos de desarrollo y estrategia de negocios, e involucra métodos de diseño.

Business model definitions

Al- Debei and Avison (2010) consider financial value as one of the main dimensions that business models must include. With information regarding costs, methods for selecting prices and income structure. Stewart and Zhao (2000) defined the business model as “a statement of how a company will make money and maintain its income stream over time.”[23]​.

Osterwalder et al. [24]

May AndyBrown (1999), considers the business model as "the design of independent key systems that create and maintain a competitive business."[26]​.

Zott y Amit (2009), consideran el diseño de modelos de negocio desde ambas perspectivas (diseño de temas y diseño de contenido). Los temas de diseño hacen referencia a los conductores dominantes de creación de valor, y el contenido examina con mayor detalle las actividades a realizar, la vinculación y la secuencia con la que se llevarán a cabo las actividades.[27]​.

Theme design with emphasis on the business model

Developing a scheme for Business Model Development, Lim (2010) proposed the ESSO or Environment-Strategy-Structure-Operations model that takes into consideration the alignment of the organization's strategy with the organizational structure, operations and ecosystem factors in order to achieve a competitive advantage of cost, quality, time, flexibility or innovation.[28]​.

Content design with emphasis on the business model

The design of business models includes the modeling and description of:.

A distinctive characteristic of content design is its dynamic orientation: it not only describes the business model at a specific moment, but also contemplates the sequence of activities, the value logic over time and the ability to adapt to the environment. For example, a company can design a revenue model that starts with a basic rate and evolves towards a freemium offering with premium services. This type of progression must be reflected in the content of the model to be strategic.

Additionally, content design, as opposed to “modeling” which focuses more on graphical representation or process mapping, privileges the narrative of how components connect and evolve. A business model template or outline is a useful aid, but the real value lies in the story that is articulated: how the value proposition originates in a customer need, how the right channel conveys it, how the relationship is sustained, and how, in time, partners, resources, costs and revenues are aligned to maintain competitive advantage.

Business model design is different from business modeling. The first refers to defining the business logic of a company at a strategic level; while the second focuses on the design of business processes at an operational level.

A business model template can facilitate the process of designing and describing a company's model.

Daas et al. (2012) developed a decision support system (DSS) for the design of business models. In their study they developed a (DSS) to help the SaaS model in this process, based on a process guided by various design methods.[29]​.

Other examples of business models are:

Communities focused on technology have defined schemes to model businesses. These frameworks attempt to define a rigorous approach to business value. It is not known for sure how important these schemes really are for business planning. The schemes represent the central aspects of any company, they involve "how a company selects its clients, how it defines and differentiates its offers, tasks that it will develop and those that it will subcontract... it creates utility for clients and obtains profits."[37]​ A business scheme involves internal factors (market analysis; promotion of products and services; development of trust; social influence) and external factors (competition and technological factors).[38]​.

A review of business model schemes can be found in Krumeich et al. (2012).[39]​ Some schemes are:.

The business model design process is part of business strategy. Business model design and innovation refers to how a company (or network of companies) defines its business logic at a strategic level.

In contrast, companies implement their business models at the operational level through business operations. This refers to activities, processes, capabilities, functions, infrastructure, organizational structure, human resources and systems.

Consequently, an operationally viable model requires lateral alignment with business operations.[42]​.

The brand is a consequence of the business model and has a symbolic relationship with it since the business model determines the mission of the brand, and the brand becomes part of the model. Managing this is a task of integrated marketing.

The standard terminology and business model examples do not apply to most nonprofits, as their revenue sources are not the same. Instead, the term fund model is used[43].

The model is defined by the vision, mission and values ​​of the organization as well as its limits. —What products are you going to offer, what customers or market are you going to target, and what supply and distribution channels are you going to use. The business model includes high-level strategies and tactical direction as well as efficient implementation. It also includes annual objectives and goals that outline the specific steps the organization needs to take in the coming year to achieve the expected results. All of this information is likely found in internal documentation and is available to internal auditors.