Business Model Online Tutoring
Introduction
The internet has brought the concept of business model in mid 1990s. However, the concept of business model was prevalent before from the pre-classical time as an essential part of the behavior in relation to the trading and economic behavior. From the mid 1990s onwards the documentation by an array of publication including articles, books, scientific journals, and book chapters has been done in relation to the ideas revolving around the concepts echoing the scholars and the practitioners of the businesses.
The scholars have deduced the internet with regards to being the driving force behind the concept that has been emerging as a business model being extensively used since mid-1990s. The rapid growth of the emerging market with respect to the issues of the bottom-of-the-pyramid as well as the expanding industries have made the organizations are depended on the post industrial technologies.
The study of the business models has been the explicit definitions surrounding the concept. Out of 103 reviewed business models, 37% failed to define the concept. They have taken the meaning of the business model for granted. The 56% of the people could not define or conceptualize the business model canvas. The remaining 19% of the people in partnerships with the scholars have defined the concept. The partial overlaps have been able to give rise to a large number of possible interpretations out of an array of existing definitions. The clarity and consistency of the definitions are lacking, pointing towards dispersion, rather than the convergence of perspectives with process obstruction in the cumulative research.
Elevate your political science prowess with MyAssignmentHelp’s specialized online tutoring services. Dive deep into the world of politics with our expert tutors, offering personalized guidance and support. Ace your assignments and exams with ease through our Political Science Online Tutoring program.
Business Models for e-Business
The electronically doing business is called the e-business. It is consisting of internet based business, e-markets, and e-commerce. The exploitation of the internet based business is surrounding the potential of the internet as against the exploitation of brick-and-mortar based business.
The new technology option and rapid growth has corroborated the organizational transformation. The emergence of new ways to deliver value has been because of the decline in computing and communication costs and advancement in the information and communication technology. This new way offerings have the scope to create mechanisms of unconventional exchange and transactions architecture. The possibility that has been accentuated in relation to the designs of new boundary covers the organizational forms (Bambury 1998). These new ways have made it possible for the firms to change fundamentally in the way the economic exchanges are organized and engaged within the firms and across the industrial boundaries. The opening of the new horizons has been because of the developing and designing of the business models.
They are distinguished among 11 models of e-shops, e-procurement, and generic e-business to be trustful to the other third party services. The other propositions of network and value center taxonomy distinguished the five types of value networks, called b-webs or business webs. The b-webs have differentiated the level of value integration and economic control.
The classification can be on the basis of revenue generation with respect to their mode and the value proposition. Other classifications include eight atomic business models with each described in conducting business electronically. The e-business initiative can be represented by pure atomic business models or in conjunction with all of them. Six business models have been introduced: focused distributors, portals’ producers, distributors, and the portals. What is common in all these approaches is an attempt to describe and organize the typologies and taxonomies to a number of business archetypes perceived by the internet technologies (Chesbrough & Rosenbloom 2000).
The classification in the mode of two dimensions has proposed the multidimensional. The dimension’s identification is classifying the model with respect to: economic control, pricing system, the nature of the offerings, interaction pattern, and the users’ role. The typologies provide the enlist and description of a series of e-business models that the e-business students have attempted to distinguish the themes of e-business models with respect to the first order and the second order components. A number of authors attempted the business model having a mixture of textual, verbal and ad hoc representation. The introduction of a simple set of schematics is having the intent to provide the tools with respect to the design and analyze of the e-business initiatives.
The schematics has been on the basis of the e-business with three classes of objects: flows (money, information, product and service flow), relationships, and participants (firm’s interest, customers, suppliers, and service flow). The value map has been depicting the way the business operations taking place. The value map (partners, customers, and suppliers) depicts the all important classes of participation and the exchanges of values between them (intangible benefits, tangible benefits and the suppliers) (Cooper & Schindler 2000).
Business Models and Strategies: Capture of Value and the Creation of Value through Activities
The business strategists and the scholars have been focusing on the lean business model canvas having an interest in the explanation of the creation of the firm’s values, competitive edge, and the performance.
The creation of novel ideas and value mechanisms is provided to the firms by the digital economy. They have been networked in creating the value in concert by a firm with a range of partners with an intention for multiple users. The attraction related to the management attention and scholars to redefine the value being employed with the business model concept for attempting the creation of value and the market that have been networked. The value creation has been explained with the provision of the business model concept of not been in use with respect to the context. The mechanism study is in relation to the creation of values to deeper poverty context. The conceptualization of the business model has been implemented with the capabilities related to the configuration to enable the value creation that has been consistent with either social or economic objectives. Therefore, the value creation can be referred to the different forms of values (Hamel 2000).
The revolutionary business model is capable of creating value as well. The thriving on the ‘age of revolution’ is being augured by the companies that adopted the new and radical agenda in the development of a new business model. The value capturing and the creation of values occur in a value network is being the traits one of the key new business models. This includes suppliers, partners, distribution channels and coalition that extends to the company’s resources.
The scholars more and more concentrates on the firm’s activities related to their network of partners. The acknowledgment of the scholars in relation to the firm’s execution has excluded from their business models and the firms’ competition can be with their business models. The business model has been increasingly becoming the potential source of competitive advantage. The creation of the superior value is due to the effective model and the novelty presented. It has the potential of resulting in an industry’s economic change. The replacement of the old ways of doing things by the business models has been the standard of the next generation entrepreneurs. The performance explanation of the firms can be completed by the business models by playing a central in achieving. The business model’s aim is in relation to the unification of the construct in explaining the competitive edge and the firm’s performance. The definition of it as a method of building and using has been done by the firm with respect to the offerings and the resources of the better value of the customers. The making of money can be focused on the firm’s chances of profitability that introduces the strategic framework of the firm in which the business model is conceptualized. The component of the firm set to the profitability and its determinants. The inclusion of the framework with respect to certain components is: resources (competencies and capabilities), industry factors, activities and position. The business model vision in focusing the profitability of the firm has established the casual relationship between the performance of the firm and the business model (Lambert 2003).
Business Model, Innovation, and Technology Management
The address of the business model is found in the areas of innovation and technology management. The research has been dominated by the complementary views. The first is the commercialization of the company in relation to their technologies with the business model. The business model has been represented by the new element of innovation that spans the organizational innovation, process mode, and product involving new forms of collaboration and cooperation. The business model doesn’t only entail the consequence of technological innovation, but can also be framed by them. The reconfiguration of the business model can be provided by the network of technological innovation with the resources (Rappa 2001).
The technology might not be enough to guarantee the survival of the firms mainly because of the two reasons. First, the technology is without an inherent value. The usual technological purpose is a matter with the business model. The firms that are upstream are having the license with the technologies that are general purpose to the downstream firms and not developing the final products themselves. Second, competition with the technology can become very difficult. The rising cost of the R&D has short product, lifestyle that indicates that superior technology cannot be dependent upon to earn a satisfactory profit before being commoditized. The better the technology or the idea, better is the business.
The BMI’s typologies have attempted the development by the scholars. The BMI can be classified into three groups.
- Innovation in the industry model that consists of movement in the new industries, creating new industries, and redefining the existing industries.
- The revenue model innovation in way of generating revenues.
- The innovation of the enterprise model changing the role played by the firms in the value chain.
The business model is the mechanism that connects the innovative technology with the customer needs and/or the resources other firms. The placement of the business model is among the resources of the firms of input in nature and the outcomes of the market embodying the organizational and financial architecture within the business. The business model has more perspective, complementing technology, open innovation, and collaborative of being firm centric. Hiwever, neither competition of output market, nor the input resources are part of the business concept model.
The core logic of a business model is around the cost and revenue. These issues have been largely ignored in the marketing science, strategic and organizational studies, and the economic theories. Therefore, the business model is a way of innovation and the innovation source (Wong & Merrilees 2005).
The Best Business Model
The best business model is the business model for e-business.
The internet is the key driver to surge the interest of the business models. There are 49 conceptual works defining the business models directly or by component. The one-forth of the works relate to the e-businesses. The scholars accentuate the aspects of the new business models of the companies that exploits the reconfiguration of the supply chain.
The value chain re-integration or dis-intermediation are the examples. These are related to the revenue collection ways, such as (a) advertisement and sponsorships of the revenue from the other firms; (b) fees of transaction and commission; and (c) subscription fees from the customers. The research stream attracting maximum attention and focus is the e-business. The e-business with respect to the first stream aiming to describe it has been providing the typologies. The second stream provides focus on the model of e-business. The e-business is the only business that conducts commercial transactions with the business partners and the buyers. Therefore, the exclusion reflects those that merely uses the website in relation to the displays of the information pertaining to the products and the services sold in the physical world (Björkdahl 2011).
References:
Bambury, P. (1998) “A Taxonomy of Internet Commerce.” First Monday, 3(10).
Björkdahl, J. (2011) “The phenomenon, causes and effects of integrating ICTs in manufacturing products”, International Journal of Innovation Management, Vol. 15, No. 2, pp.335–358.
Chesbrough, H. and Rosenbloom, R. (2000) The Role of the Business Model in Capturing Value Innovation: Evidence from Xerox Corporation’s Technology Spinoff Companies. Boston, Massachusetts, Harvard Business School.
Cooper, D. R. & Schindler, P. S. (2000) Business Research Methods. New York, McGraw-Hill Irwin.
Hamel, G. (2000) Leading the Revolution. Boston, Harvard Business School Press.
Lambert, S. (2003) Making Sense of Business Models.
Rappa, M. (2001) “Business Models on The Web”. Managing the Digital Enterprise. North Carolina. 2006.
Wong, H. Y. and Merrilees, B. (2005) “A brand orientation typology for SMEs: a case research approach.” The Journal of Product and Brand Management, 14(2/3): 155.
