Business Model Enabling Value Creation

Question: Discuss about the Business Model Enabling Value Creation. Answer: Introduction Globalization and competition in global business has led to business adopting various strategies and developing a business model for them. The scope of business model allows structure for businesses as well as entrepreneurs to develop a framework for handling tasks(Zott C. A., 2011). There are vast number of research and study conducted in the area of business model that can deliver a business values on the basis of structure and governance. Business model for businesses enables development of a structure which can be applied on managers and leaders which they can implement in order to deliver greater values to customers as well. An interconnected framework of structures and governance allows competing within the industry as well. It incorporates conceptualization for the future sustainability of businesses. A business model allows devoted resources of the organization to meet the strategic goals and objectives. Thus, the strategic goals acts as a key driving force behind formation o f the business model and in defining its structure. Designing for a business model integrates operations, sourcing, strategies, structures for utilization of commercial opportunities allowing for extraordinary growth for firms. A business model allows creating framework which further incorporates a firms capturing of economic, social as well as cultural values for its business. A business model helps solve dynamic and static problems for businesses and to undertake innovation as a key system. Thus, the scope of this current essay evaluates the scope of business model, ways that it can solve static and dynamic challenges in business and the way it can perform as a system itself. For the purpose of evaluation Kodamas (2009), Zott and Amits (2010) work has been taken tinto account. Analysis According to Schloderer Mezias, (2016), there are many arguments of many scholars regarding the business model concept, basically business model helps an organisation to build their business structure successfully. There are two kinds of elements of a business model, such as business system or the profit model. These two elements can be helpful to make the proper business model. However, the business system builds the business or organisation structure and the profit model takes care of the profitability of the business as well. The profit model also helps organisation to make competitive strategies to compete with the rivals companies. So that business model always has the focus to build the business or firm structure in a proper way (Zanella et al. 2016). Conceptualized business models have the involvement in understanding the proper business models. As business models help organizations to enhance the market value of the company with competitive advantage, hence this conceptualized model helps organizations to make the concepts understand with the help of composition concepts Gassmann et al. 2016). As per early discussion, there are two elements of the business model so that one element can be understood as the profit model or system so that the profit model helps the business model to understand and calculate the each and every terms of the business. The scope of this current article, it can be seen that there is a difference between business model and the business system. And the business system is more focused on the real-time business process and structure, and this system plays twins roles in the business process at first it helps the organisation to calculate the strategies and diagrams mathematically. However the business model is the actual business system, therefore it can be said that the business system is a part of business model. According to Christensen, Bartman Van Bever, (2016), on the other hand, the business system helps the organisation to understand their partner in a proper way, as this system works on the understanding the outcome and procurement sources of a particular organisation. In this way the business systems helps the company to understand their actual partner who can be helpful to understand the partners who help the business to make their outcomes in a good manner. As sighted by the scholar Sauer et al. (2016), basically this system helps the company to understand their internally and externally outsources, therefore in this way they can make new innovative products after gathering the information about their outcomes and competitive advantage. On the other hand, this system also helps to keep control over the activities of trading partners so that in this process they can make a strategy wiry their partners to make innovative products. Figure 1: Business Model Framework Source: (Alexander, 2010) In this framework it can be clearly seen that the business model works in the organisation in many ways to develop the performance of that particular company. As per early discussion it works as a system as well so that the framework is based on that early discussion in the essay. In this essay it has been focused on the Zott and Amit's (2010), article, and where is a description about the business model in a proper way. This article focused on the business model innovation, basically business model innovation helps organizations to develop or choose new technologies in their business process. According to Massa, Tucci Afuah, (2016), along with this the BIM also provides new ideas to the company that can attract people towards the company. This article has the intention to develop the proper idea about BIM and business model as well. The authors have the argument on the exact capabilities of the business model. BIM increase the innovative designs and developing new products or serv ices(Anderson, 2016). Apart from this business model also develops the relationship of the organisation with their customers. As stated by Bitsch et al. (2017), the model increases the profitability of the organisation as well. The reason behind choosing this article is to understand the efficiency of the BIM and business model. In the below part there has given the framework of BIM that is related to this article. On the other hand this essay also based on the information about Itami and Nishino (2010) article as well. Figure 2: BIM Framework Source: (Zott C. a., 2008) In the first article Kodama (2009), there is a description about the creativity of the organisation and this creativity can be possible with the help of a business model. On the other hand, Zott and Amit (2010), said that the business model this the main part of a business process which works on the various path of a business. Itami and Nishino (2010), have said in the article this model increase the productivity and profitability of an organisation. There are the three arguments of three articles that can be seen to be analyzed. As there has been given three articles in the question but among those three articles I have found Zott and Amit's (2010), and Itami and Nishino (2010) articles helpful to understand the proper business model. As in those articles, there is a brief description of business innovation model, thus it helps me to understand the innovation process of a business model (DEspallier et al. 2017). As per this article, the business model is very efficient and without a proper business model, it is impossible for an organisation to increase their profit and adopt innovative products or services in their process. Recommendation and Conclusion After analyzing this essay it can be concluded that business model is the thing which provides a positive impact on the several parts of the organisation. In order to analyse proper business model, it can be seen that this model has many parts or ways such as BIM, profit model and so on. Thus to develop the structure of a company and to increase the profitability or on the other hand to make new partners of the company business model is always helpful. The partners of an organisation always find new opportunities for the company, so that the partners always can be helpful in a positive way for a company. Apart from this in this essay there has been chosen Zott and Amit's (2010), article to elaborate this model properly, there has been also given frameworks of this model as well. Organizations in order to expand and create more future scope for its businesses has to incorporate the concept of business models which allows them to establish competitive advantages easily. Though there ar e no stringent process that can help to form business model yet the structure and governance of an organization can guide for the same for creating business sustainability. Reference Lists Alexander, O. a. (2010). Business model generation. . Business Model Canvas, explanation and concept of the Business Model canvas, 89-107. Anderson, P. (2016). Nicolai J. Foss and Tina Saebi, eds.: Business Model Innovation: The Organizational Dimension.Administrative Science Quarterly,61(2), NP17-NP19. Bitsch, J., Brochstedt, S., Holm, A. H., Knudsen, A. (2017). The role of stakeholders in relation to the business model in the taxi industry.Proceedings of Pragmatic Constructivism,5(1), 3-17. Christensen, C. M., Bartman, T., Van Bever, D. (2016). The hard truth about business model innovation.MIT Sloan Management Review,58(1), 31. DEspallier, B., Goedecke, J., Hudon, M., Mersland, R. (2017). From NGOs to banks: Does institutional transformation alter the business model of microfinance institutions?.World Development,89, 19-33. Gassmann, O., Frankenberger, K., Sauer, R. (2016). Conclusion: Opening up a New Debate on BMI. InExploring the Field of Business Model Innovation(pp. 107-111). Springer International Publishing. Gaus, O., Raith, M. G. (2016). Commercial transferA business model innovation for the entrepreneurial university.Industry and Higher Education,30(3), 183-201. Massa, L., Tucci, C., Afuah, A. (2016). A critical assessment of business model research.Academy of Management Annals, annals-2014. Rayna, T., Striukova, L. (2016). From rapid prototyping to home fabrication: How 3D printing is changing business model innovation.Technological Forecasting and Social Change,102, 214-224. Sauer, R., Frankenberger, K., Lingens, B., Gassmann, O. (2016). Spin-offs as Core Vehicles for Business Model Innovation: An Attention-Based View. Schloderer, F., Mezias, S. (2016). Knowing Pains: Identity Based Market Control and the Creation of the Hollywood Studio Business Model. InAcademy of Management Proceedings(Vol. 2016, No. 1, p. 10713). Academy of Management. Zanella, P., Verona, G., Cillo, P., Priem, R. L. (2016). The Microfoundations of Customer Involvement in Business Model Ideation and Development. InAcademy of Management Proceedings(Vol. 2016, No. 1, p. 14130). Academy of Management. Zott, C. a. (2008). The fit between product market strategy and business model: implications for firm performance. Strategic management journal, 1-26. Zott, C. A. (2011). The business model: recent developments and future research. . Journal of management, 37(4), 1019-1042.