Innovation and Sustainable Business Development †Free Samples

Question: Discuss about the Innovation and Sustainable Business Development. Answer: Introduction The current world of business competitiveness has become much challenging for the business marketers. The marketers often focus on structuring the organisational functionalities in order to provide the best solutions (Gobble, 2014). We often wonder what exactly needs to be done to maintain sustainability in this competitive business scenario. The clear and concise idea of the business model innovation can be fruitful enough in developing the organisational functionalities. However, we need to derive the complete understanding regarding the business model innovations. The identification of the associated components would provide the insightful knowledge about the method of business sustainability. Here we would discuss about the conceptual form of business model innovation and its significance in maintaining sustainability. Discussion In pre-classical times, the business model was conceptualized as the integral part of the economic and trading purposes. Apparently, the business model refers to the methods used by the organisations for generating revenues (Casadesus?Masanell Zhu, 2013). In the real business world, the business marketers generally deal with the basic components of the business model. These basic components are: Charging Subscription Fees Selling purpose of the product or service Selling service contracts These components are significantly helping the organisations to generate expected revenues. The business model innovation specifically concentrates on factors that are ensuring more profitability for the company in this competitive scenario. According to Zott, Amit and Massa (2011), Business Model is widely conceptualized as the description, representation, and a statement of the business world. Therefore, we can consider that the business model pays the closer attention towards the following factors: It articulates the value propositions that are created while offering the products or services to the customers. It identifies the relevant market segment for ensuring the purpose of selling. It defines the value chain structure while distributing the product and service to the customers. It estimates the profit potential and cost structure of the products Describes the competitive positioning of the firm Structures the competitive strategy for winning over the rivals in the business market. In the further section of the study, we would discuss the three major concepts of the business model that have the significant impacts on the business functionalities. In this section of the study, we would provide the explanation of the conceptual analysis of three business model components. These three concepts are: e-business model archetypes Business model as activity system Business model as revenue architecture The e-Business Model Archetypes depend on the seven business fundamentals or personalities. The business model depends on these personalities during the development period. These seven business fundamentals are: Product Subscription Service Brokerage Trade Market Place Eco System The business primarily focuses on the development process of the tangible artifacts that require one-time cost. In some of the cases, the product is generally consumed for the personal entertainment (Narayan Volberda, 2017). The indicative attribute of the products are as follow: Key partners: Market Place Value propositions: The productivity scale Key Activities: Development functions Monetization: Product sales The second type of the fundamental is the combination of the services and products (Christensen Bartman Van Bever, 2016). The subscription personality focuses on the following aspects: Key Partners: Owner of the ecosystem partner Value Proposition: Customization of the platform Key Activities: Maintenance and Customization Monetization: Materials and Adequate Time Service is the third type of the business fundamental that signifies the intangible solutions offered to the clients or the customers (Spieth, Schneckenberg Ricart, 2014). This fundamental indicates the following attributes: Key Partners: Platform owner of the Ecosystem Value Proposition: Customization of the Platforms Key Activities: Maintenance and Customization Monetization: Materials and Adequate Time This archetype is the secondary form that includes the trade and service activities on behalf of the clients or the customers. The attributes are: Key partners: Wholesalers Value Propositions: Procurement of the Efficient Commodity Key Activities: Recruiting the sufficient number of Wholesalers Monetization: Commission of Base fee plus This type of the archetype pays attention on connecting the sellers and buyers. The attributes are: Key Partners: Advertising and Product Sourcing Value Proposition: Convenience, Low Price Monetization: Product Arbitrage Key Activities: Advertising and Sourcing It is the secondary archetype that includes the attributes of the product and trade archetypes. The attributes are: Key partners: Merchants Value proposition: Method of Destination Shopping Key Activities: Advertise and Recruit the vendors Monetization: providing a particular amount of commission per sale It is the tertiary archetype that combines other archetypes and quite difficult to achieve. The attributes are: Key Partners: PaaS Provider Value proposition: Software andManagement Key activities: development of the software Monetization: Subscription Fee Business Model as Activity System is mainly focusing on several elements, such as content, governance, and structure. The content of the activity system refers to the selection of the activities. The structure of the activity system defines the linking between the activities. It is also capturing the importance of the business model (Markides, 2013). On the other hand, the governance of the activity system ensures the performance of the associated activities. It focuses on the possible approach to maintain the governance procedure. It is notable that the managers often strive to make progress in the profitability parameter. Therefore, it is necessary for them to undertake all these parameters simultaneously. However, sometimes it becomes much challenging since it involves some of the factors to be considered. It is necessary to understand whether the business requires including any secondary market for trading the business loans (Schneider Spieth, 2013). In fact the possible barrier s are also necessary to be identified. The design parameter of the system activity becomes highly interdependent. Hence, apparently the business model as the activity system is mainly concentrating on the process of conducting business. The revenue model determines the method of generating revenues by the firm and it is the integral part of the business model. Subscription is one of the most fruitful revenue models that deal with the free transactions, profiling and functions (Fielt, 2013). The business model as revenue architecture identifies the various type of the revenue model. It focuses on the actions of the customers by maintaining the effective relationship. On the other hand, the criterion sometimes limits the method of generating revenues from the customers end. It becomes much challenging for the business marketers when the price of the products is persuaded to keep lower. Another major focus is the offer-related criteria that maintain the price level, consistency, and origin of the offered service or products. It is necessary for the company to obtain the adequate knowledge regarding themanagement of the functionalities that can ensure more revenues. Finally, the revenue related criteria focus on the pay ment method and the origin of the revenue (Zott, Amit Massa, 2011). It is to be stated that the origin of the revenue can be from the direct or the indirect source. The benefit related criteria signifies additional benefits provided to the customers for gathering their attention. It is quite helpful for the company since there is the high chance of the long term relationships. However, the product consistency is the major factor to be considered in such aspect. The business model innovation provides the top-down approach that is significant enough in generating more profitability and establishing the long term sustainability. However, the challenges are faced due to the lack of resources, lack of adequate knowledge, and impropermanagement of the organisational functionalities. The business model as revenue architecture identifies the various type of the revenue model. It focuses on the actions of the customers by maintaining the effective relationship. The limitation with the service and product information influences the purchase decisions of the customers. It becomes much challenging for the business marketers when the price of the products is persuaded to keep lower. Another major focus is the offer-related criteria that maintain the price level, consistency, and origin of the offered service or products. It is essential to obtain the adequate knowledge regarding the business model functions and structure these functionalities according to the requirements. Conclusion The artifacts included in the business innovation model sometimes lead to the business failure. Therefore, it is necessary to derive the adequate information relate to the implementation of the business process. In the real business world, the business marketers generally deal with the basic components of the business model. The clear and concise ideas regarding the conceptual analysis of the business model is quite necessary for the business marketers. The contribution of the business model innovation is much significant in generating the revenues. However, it is also necessary to derive the extensive knowledge about the strategic procedure of implementing the business process. Business model as the revenue architecture depends on the segment based criteria. The offer-related criteria that maintain the price level, consistency, and origin of the offered service or products. It is necessary for the company to obtain the adequate knowledge regarding themanagement of the functionalitie s that can ensure more revenues. The resource capability and focus on the customer base are also needed to be taken into consideration during the development of the business model. The concentration on the market limitations and competitiveness is essential prior to take any decisions regarding the business model innovation. References Amit, R., Zott, C. (2014). Business model design: a dynamic capability perspective.J. Manage. Casadesus?Masanell, R., Zhu, F. (2013). Business model innovation and competitive imitation: The case of sponsor?based business models.Strategic management journal,34(4), 464-482. Christensen, C. M., Bartman, T., Van Bever, D. (2016). The hard truth about business model innovation.MIT Sloan Management Review,58(1), 31. Fielt, E. (2013). 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