Innovation and Business Model Samples †MyAssignmenthelp.com

Question: Discuss about the Innovation and Business Model. Answer: Innovation and business development The essay examines the concept of business model and referring the models in different situation like e-commerce archetype, activity system, and cost-revenue architecture. The concept of business model assists in resolving the static and dynamic problem keeping in view the model design and redesign problem. The business environment is studied linking it with the changing external and internal environment. It argues upon the for sure changes that are likely to take place and elucidating the statement supporting the example of Coles and its positive technological amendments that the company initiated. Lastly, the impact of dynamism on business models is discussed followed by the decision-making process adopted by the managers and their way of dealing with the issues that occurred. The business model is framework that designs the manner in which the business will process and progress. The entire business could be easily explained in a small paragraph justifying the gist of conducting the business. It is stated that customers get attracted to those organisation which follows a set predefined Performa. On following the criteria a sense of discipline is maintained and compromise with quantity and quality is never done. This is the factor that grabs customers attention and increases the customer loyalty. Consumers like those product and service that maintains its consistency and fulfil the promises. They gain a positive factor of word of mouth publicity. More satisfied the customer is more will they recommend it to others. Business model is the tool to save cost and listing down the expenses and cutting cost wherever required. This helps in generating revenue and increase the profit margin. Business model is a narrow term and is just a structure and part of busines s plan which argues about the human resource, capital investment, budget setting and fulfilling the requirements of business model. Even investors decide to invest in a business by scrutinizing and analysing the business model. Business models should be flexible and adaptable to dynamic environment to react positively as per the changing situations (Hill, 2017). The business model can be constructed with the help of seven archetypes. Business archetypes are introduced by Carl Jung, the inventor states that archetypes are similar to that of personality. When one is inspired by the others personality they try to adapt them inside as well. Same is the case with archetypes if the model or structure of the similar business is attractive the competitors tries to inculcate those strategies within them as well. An E-business archetype gets inspired with the portal and software that could be beneficial for flourishing business. The seven archetypes are product, subscription, service, brokerage, trade, marketplace and ecosystem (Smarter start-up, 2014). Another business model is based on activity type. The activities are set of tasks which are interdependent on each other and connected with the central focal firm designed by the managers and entrepreneurs of that focal firm to maintain the connectivity and flow of information. There are two parties in volved and activities are designed using two attributes: design element design theme. The design element involves content, structure, and governance. The design theme includes novelty, lock-in, complementarities, and efficiency (Zott Amit, 2010). Business model acts as a cost-revenue architecture where the budgetary chart is constructed keeping in view the cost incurred to gain customer satisfaction and whether such cost is justified or not? Is the cost rendering the well-defined profit or the strategy need to be changed? Keeping in mind the business model there occurs a variety of challenges. A business faces static and dynamic problems, also there exists design and redesign issues as well. Using these predefined flexible business models the constant and diverting problems can be solved (Zwilling, 2011). The static problems are those that always stays attached with the business whenever it is started thus the solution is almost known to the business and applying the business model these issues can be resolved. The dynamic problems are sudden and could appear at any point of time, the challenge is to resolve these problems efficiently using business model concept including the design/ re-design problem as well. There are multiple models of business, some of them are a low-cost business model, franchising, auction, catalog, add-on business model, affiliate, the ad was driven, freemium e-commerce business model (Problemio, 2016). The models differ with the nature of the business, considering e-commerce the static problem is connectivity problems, availability of resources, viruses piracy which is static one whereas the changing software, banned by the government, payment issues, delivery problems and many other unpredicted problems are dynamic. With the set model and IT experts, the static problems could be resolved but dynamic problems require expertization and intelligence level to solve it with immediate aspect to satisfy the angry customer and providing them the rapid assistance possible. The business context is the wider aspect which is highly dynamic including different stakeholders. The business environment is further divided into two attributes: macro environment and microenvironment. Macros are external whereas micro includes the internal environment. Macro is a wider aspect that covers the study of the external environment and relates to the moves of the competitors, changing trends and taste of customer, the launching of new political policies and dynamism in the international market. Micro relates to the internal environment which is the working environment, communication channel, organizational structure and much more (Chand, 2016). The business model should be designed keeping in view the ever-changing external environment. Changes are inevitable in the business; in order to expand, there is a need to implement fruitful changes. Also, it is not always the company that initiates changes, certain changes take place due to change in governmental policies, techn ological changes and other unpredictable changes taking place. These changes are the part of business thus model creation should be that flexible to accept the required changes and handle it in classic manner (Stavert, 2014). Not every change will be favoring, some may lead to loss, therefore, pre-preparation to the adverse situation and adaptability needs to be there. The following diagram renders more clarity to the above thoughts: In connection with the ever-changing business environment the example of Coles, Australia could be quoted with respect to the technological changes adopted by the organization. The company brought the dynamism by initiating new technique of refrigeration which is cost effective and environmental friendly as well. The gas used to cool down the stuff is fluorocarbon which maintains the temperature and not contributing to the depletion of Ozone layer. Another pocket-friendly and environment soothing technology adopted by Coles is the use of LED lightings which lessens up the remitting radiations and costs lower than the usual light and they are bright too so units implanted is also less. This change has contributed in the functioning of Coles in a positive manner. The business and social obligations both are fulfilled which results in creating a benchmark for the competitors as well (FM Magazine, 2016). Dynamism can knock the business at any moment and it affects the designing of the business model as well. The business model is constructed by keeping in view the prevailing situations and predicting the things which are likely to happen in the near future. But certainly one cannot make a definite prediction and sudden things are meant to happen. To deal with such situations flexibility need to be maintained and specific training program should be initiated to make employees learn the rapid adaptability and catch the immediate changes as soon as it occurs and positively responding towards it (Venturi, 2014). Considering the changes in business model from the perspective of managers it turns out into the challenging job. Managers need to draft the strategies according to the dynamic environment and preliminary blueprints are constructed concerning the predictable changes (Ylisela, 2017). In order to respond to the changes in positive manner metrics and measurements with regards to the decision-making should be taken into consideration. Study regarding the changes should be made and risks should be inculcated for ensuring the growth. The wise steps need to be taken by gathering a lot more information regarding the changes that occurred. The deep knowledge helps in solving the problem from the root. Also managers should adopt the decentralisation strategy so that the work gets distributed and employees, as well as customer, feel involved in the decision making of the company, as the customers are the one that brings changes and employees are the first ones to handle those challenges thus they are best people to initiate a better decision (Richards, 2017). Hence, it could be concluded that business model is a must for every business to plan the growth and performs the activity accordingly. But constructing a model is not an easy task it requires a lot of studies, brainstorming, risk management and appropriate decision making by the managers. The business model also variates due to the changing situation taking place, thus it needs to be elastic to adapt the situation and positively respond to it. It is the managers responsibility to study the upcoming changes and making predictions accordingly to stay a step ahead and welcome the challenges. But all the time the challenges are not welcoming, sometimes they are harsh as well but adaptation needs to be made so that at least loss could be avoided. Managers elect the smart strategies by involving employees and customers as well for taking certain decisions which fulfill motivational strategy along with wise decision making. References Chand. S. (2016). Business environment: nature and significance of business environment. Viewed on 17th August 2017. https://www.yourarticlelibrary.com/business/business-environment-nature-and-significances-of-business-environment/23367/. FM Magazine. (2013). How Coles has reduced its refrigeration costs and environmental impact. Viewed on 17th August 2017. https://www.fmmagazine.com.au/sectors/how-coles-has-reduced-its-refrigeration-costs-and-environmental-impact/. Hill. B. (2017). The concept of a business model. Viewed on 16th August 2017. https://smallbusiness.chron.com/concept-business-model-3866.html. Problemio. (2016). 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Viewed on 17th August 2017. https://www.linkedin.com/pulse/20141208111749-6038885-impact-of-technology-on-management-and-organizations. Ylisela. M. (2017). How a manager should deal with frustrations and a changing environment. Viewed on 17th August 2017. https://smallbusiness.chron.com/manager-should-deal-frustrations-changing-environment-34581.html. Zott. C. Amit. R. (2010). Business model design: an activity system perspective. Long Range Planning. vol. 43. no. 2. 216-226. Zwilling. M. (2011). Nine steps to effective business problem solving. Viewed on 16th August 2017. https://www.businessinsider.com/nine-steps-to-effective-business-problem-solving-2011-7?IR=T.