In our acceptation, a business model is an organization that supports, creates or takes advantage of the value. The value is the sets of benefits the customer is inclined to pay. The mission should be the excellence for delivering that value.
We are aware of the fact that an organization is something very complex, but whiling thinking of an idea we could take a risk making it simple. Business Model Generation from A.Osterwalder is a great example; it can help to put simplicity on a paper.
For example, if we are planning to move your revenue to a recurrent schema you should understand how the cost structure change and when (and if) we will be profitable. Nevertheless, if we do not have value for the customer every business model will fail.
When we are studying out value proposition is very important having in mind a scheme of thinking that refers to the same model used for the entire organization. We think this is the motivation of the most important link in the business model canvas: the one between «value proposition» and «customer set». In this link, we will find our success and we believe that the link is the Camel Theory itself.
We must know where is the value to the customer or have a story to convince him/her and we should understand how to deliver that value making money for our organization. This is the win-win factor: earning money delivering appreciated value. That will be only if the organization is aligned and the glue is the intrinsic valor of the people.
In companies, those who think up a proposition, from research and development to the marketing departments, are not those who will take it to the market. That will be the sales force’s task. However, everyone must remember that a proposition is a promise that a company makes to its market; so, everyone, without exception, must actively contribute. In order for the company to be successful, the customers must trust it, and to earn this trust, it is necessary to respect the promises that are made.
Everyone must participate in the realization of the promise contained in the proposition. That the flavour of a business model.
11 risposte a “THE DEFINITION OF BUSINESS MODEL”
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