Business model is a new tooldesign and planning of business processes. They are aimed at finding the most effective solutions in making profit. A powerful impetus to the process of building business models has been with the massive development of e-commerce. Today these tools are used not only in the online field, but also in traditional business sectors. Let's talk about what a business model of an enterprise is, what types of it exist and why they are needed at all.
The concept of a business model
If we briefly describe the essence of the business model, thenIt should be noted that this is a simplified, schematic, conceptual view of the flow of business processes. This concept arises in response to the numerous challenges of the new economic reality that emerged in the late 20th century. More and more newcomers came to the business, and they did not have the time, money and knowledge to develop deep development strategies, they needed efficient and quick tools to maximize profit. And the business model is an understandable, obvious way to see all the components of the business and to find points for development and increasing profitability.
Approaches to the definition of a business model
For the first time the term "business model" appeared in the workson economy in 40th years of 20 centuries. But then it was not widely used, for a long time it was used in conjunction with the concept of corporate strategy. And only in the 90's business models became popular in connection with the comprehension of business on the Internet. Later the term organically entered the lexicon of managers and economists of different spheres, not only online. There are two basic approaches to formulating the definition of a business model. The first is associated with the emphasis on the flow of production processes in the company and is aimed at finding the internal reserves of the firm for additional profit. The second approach is related to the external environment of the company, in particular, the consumer and his needs and values. The company in this case chooses a consumer segment, develops a buyer, establishes relationships with it. Also, there are many author's concepts, each of which formulates its own interpretation of this concept. In its most general form, it can be said that a business model is an analytical tool that in a schematized, visual form gives a description of all the processes in the company and helps to find points for profit.
Objectives of construction
The main purpose of creating a business model is tofinding a way of development of the company. It helps to identify the advantages and competitive differences of an enterprise and evaluate new business processes. Also, the business model allows you to determine the need to make changes to the already familiar ways of existence of the company in order to maximize profits. In addition, modeling helps identify weaknesses in the firm and the removal of vulnerabilities. The business model is a good tool for assessing the effectiveness of production processes and management organization. It gives a holistic view of the firm's activities and the state of the internal environment, which allows improving the flow of all processes.
Business model and strategy of the company
It can often be that the terms"Business model" and "corporate strategy" are used as synonyms. Or, at all, strategy is a component of the model. However, there are serious differences between these phenomena. The strategy is based on a comprehensive analysis of the external and internal environment of the company and the formulation of long-term goals. And the business model is related to relatively close goals, it is more of a tactic, as it gives specific answers to questions about how to achieve goals. The business model of the project includes a set of necessary actions as close as possible to the current reality. It is more connected with the financial sphere of the company. The strategy, to a greater extent, sets the direction of the development of the firm, it is much less specific. The optimal sequence of planning is the development of a strategy, and already on its basis - the creation of a business model. The strategy in this case is the ideological platform for modeling.
Since the business sphere is extremely diverse,then there is a large number of business model options. Theoreticians and practitioners find various approaches to the definition of this phenomenon and identify the various sets of components in it. So, there are a lot of supporters from the point of view that the business model of the organization includes such components as organizational-staff structure, resources, business process, organization functions, corporate strategy and goods and services produced. The generalized model of the business plan includes the following components: analysis of the market and competitors, organizational structure, plans for marketing, production, finance, risk assessment, legal grounds. However, these concepts are not entirely business models. The most popular business model of Osterwalder consists of 9 main components: consumer segments, customer relations, distribution channels, trade offer, resources, core activities, key partners, cost structure and revenue streams. Below we will consider this model in more detail. Traditionally, today the business model includes such units as consumer, product, marketing, suppliers and producers, finances, competitors, the market, non-economic factors of influence.
Stages of building a business model
Any simulation begins with an estimatethe current situation and the formulation of goals. Next, the construction of business models is associated with the selection of a suitable template and its competent filling. Osterwalder is the chief ideologist of business modeling in the world, says that the process of "design" includes five main stages:
- Mobilization. At this stage, it is necessary to conduct preparatory studies, assess resources, outline goals and, most importantly, to gather the necessary team.
- Understanding. This stage is connected with immersion in the situation, i.e. at this time it is necessary to understand what is happening in the market and in what conditions it will be necessary to conduct business.
- Design. This stage is associated with the generation of ideas, more oftenall of them appear as a result of the brainstorming of the team. At this stage, you need to find several viable ideas for doing business and find the appropriate templates for business models.
- PChanging the. This stage is associated with testing the model developed to the real conditions of the markets and adjusting it to the existing circumstances.
- Havegoverning body. This is actually the stage of using the model, with a periodic assessment of its effectiveness and making adjustments to its functioning.
Types of business models
There are several approaches to the identification of speciesinvestigated objects. As a basis for a typology, the assets that are sold can act. In this case, models are distinguished with financial, human, intangible and physical assets. The object of the model is allocated such varieties as templates for a certain product, for the company as a whole and for a group of companies. In this case, researchers talk about differentiated, undifferentiated, segmented, integrated, adaptive and outwardly oriented species. However, the best business models are difficult to typify, and they usually bear the name of the company for which they were first invented. For example, in the 1950s models appeared for companies such as the American McDonald's and Japanese Toyota.60 years were marked by innovative types of Wal-Mart and Hypermarket.In the 80s, a new trend was set by Home Depot, Intel and Dell Computer In the 90s, they were replaced by models invented for Netflix, eBay, Amazon.com, Starbucks, Microsoft, and the late 20th and early 21st centuries were marked by a boom in models for Internet projects.
Business models on the Internet
Online commerce in recent years is only gainingturnover, this is the fastest growing sphere of the modern economy. One of the secrets of this boom is the opportunity with small investments to build a successful and profitable business. Since this sphere, first of all, is a place for realization of its plans by young entrepreneurs who do not have the experience of in-depth research and strategic planning, it is on the Internet that a large number of different complexity models appear. The most popular business model of the company on the Net is online auctions. There are several super-profitable and thousands of small companies built on this principle. Researchers claim that to date, the Internet is implementing 9 main types of business models: brokerage, subscription, trading, advertising, production, information-intermediary, partner, consumer and community.
The Blank-Dorf model
Steve Blank is one of the most successfulstarters, his book with Bob Dorf tells about what new business models should be based on. They are supporters of approach to business from the consumer's point of view. When compiling the model, it is necessary to answer key questions from five groups:
- Consumers: who are they, what can they offer and how?
- Product: what is it good and how best to deliver it to the buyer?
- Income: how to earn money and what can you increase the profit?
- Resources: what is needed to achieve the goal, where are these resources and how to get them?
- Partners: who can help in achieving the goal and how to attract them?
According to the authors of the model, for the development of the projectit is necessary to overcome 4 stages: identification, verification, attraction and birth of the company. At the last stage, the project "degenerates" into a full-fledged company.
One of the most famous in the world is the business model of Osterwalder, it is suitable for projects in any field of activity. In the model there are 9 blocks:
- Consumer segments. It is necessary to analyze the market and identify the appropriate segments on which to focus, so as not to scatter resources.
- Value propositions. It is necessary to understand what is important for the buyer, what are theits main needs and on this basis formulate a proposal that would meet the needs and values of the consumer. He should get what will help him solve some problems and meet the needs.
- Sales channels. Based on the lifestyle of the consumer and his media preferences, it is necessary to select channels for the dissemination of information about the product and the ways of selling it.
- Relationship with the client. It is necessary to think over ways of attracting and retaining customers, as well as methods for motivating them to purchase.
- Key resources. For any company, material, human and non-material resources are needed, the entrepreneur must understand well what he will need and where it can be obtained.
- Key activities. One of the most important blocks, it is necessary to prescribe the production processes and management peculiar to this project.
- Key partners. Who can help in achieving the goals: suppliers, producers of basic and related elements, it is important to understand how to involve them in your project.
- The structure of costs and revenue streams Are the blocks for which the financialbusiness model. You need to be well aware of the costs of product manufacturing and delivery, and where there are points for potential profit increases. All these blocks of the template need to be filled, conducting research and brainstorming.
Model E. Maurya
A "lean" business model is a modificationtemplate Osterwalder. It also identifies several blocks that need to be filled: a problem, a value proposition, client segments, key metrics, sales channels. The most important thing in business, according to E. Maury, is to find an advantage that dishonest competitors can not copy. It can be technologies, ways of interaction with the buyer, features of distribution. It is in the presence of this advantage lies the main secret of business.
The Johnson Model
According to Mark Johnson, the business model isThe way to properly capture the market. He based his template on the concept of K. Christensen on the pure capture of space. The model includes three components: a value proposition, a profit-making formula and key resources plus key processes. All components are interrelated and influence each other.