Inspirational Business Plan: Successful Innovation
Business model converts innovation to economic value for the businessThe business model spells-out how a company makes money by specifying where it is positioned in the value chainIn the most basic sense, a business model is the method of doing business by which a company can sustain itself – that is, generate revenue.. It draws on a
multitude on business subjects including, strategy, economics, finance, operations, and marketing.Simply put, a
business model describes how a business positions itself within the value chain of its industry and how it intends to sustain itself, that is to generate revenue.
Overview ; Inspirational Business Plan: Successful Innovation
"Past success stories are generally not applicable to new situations. We must continually
reinvent ourselves, responding to changing times with innovative new business models."
New Business Models
Old business models don't work in the new economy. "The classic business model that has dictated the structure of every company from General Motors to
Microsoft is so at odds with contemporary economic currents that is must and will disappear
The Growing Role of the Business Architect
In today's knowledge- and innovation-driven complex economy, business architects are in growing demand. To build a winning synergistically integrated
organizationcross-functionally excellent people who can tie several silos of business development expertise
together, create synergies and then lead people who will put their plans into action.... More, companies need
Three Steps to a Sound Business Model
business model? Investors and entrepreneurs throw this phrase around a lot, often without examining what it really means. On a basic level, a business model tells us how a business makes money.
However, to get a deeper understanding—and to get investors excited—it's important to break up this concept into some key elements:
Customer Value Proposition: A strong customer value proposition means your product or service helps to solve a problem or provide a benefit. For example, Skype provides easy voice
communication for free. That's tough to resist, even though the quality of the service is not up to that of a traditional telco. Athenahealth is another good example of a company that has a clear
customer value proposition. Athena delivers a Web-based system to help physicians get higher reimbursements from insurance companies. It's a huge headache for doctors to keep track of the
mind-numbing rules and regulations applying to reimbursements. Athena helps doctors save on administrative costs and improve revenues. Again, who could resist that?
While these companies have sophisticated offerings, their customer value propositions are downright simple. Unfortunately, the temptation for many companies is to mention as many benefits as
possible, which often clouds the core message, not only for customers but also for employees. That makes it tough to get traction in the marketplace.
A foothold: Your customer value proposition, no matter how powerful, is worthless unless you get customer adoption. But it's often expensive to win customers, especially
mainstream ones. One approach is to identify a niche customer segment of early adopters. These folks like experimenting with new things and can provide valuable feedback that improves your
offering. This was the case with Facebook, which got its start at Harvard. Early adopters can also create lots of buzz, which is essentially cheap marketing.
Differentiation: In the 1990s, hundreds of companies entered the e-commerce space. But while many provided convenience and cost-effectiveness to customers, there was little
differentiation. It was up to innovative companies such as Amazon.com to add unique functions setting them apart, such as user reviews, recommendations, wish lists, and speedy shipping. These all
increased customer loyalty and made it difficult to switch to alternatives.
Pricing: Pricing can be another key way to build your customer value proposition. When Salesforce.com (CRM) launched in 1999, the company
wanted to make it easier for customers to buy software. Until then, the typical strategy was to charge customers large up-front licensing payments on top of ongoing maintenance fees. Salesforce.com
disrupted the industry by forgoing license fees and instead charging for the software as a service with a monthly subscription. That new business model helped turn Salesforce.com into a
multibillion dollar company.
These characteristics form just a basic framework. Obviously, business models can take lots of work, and frequently evolve over time. However, in order to run a successful business, you need a
clear understanding of your current business model. You certainly need it to impress investors, who are becoming more concerned about the viability of new ventures
The term "extended enterpriseThe notion of extended enterprise includes many different arrangements such as virtual
integration, outsourcing, distribution agreements, collaborative marketing, R&D program partnerships, alliances, joint ventures, preferred suppliers, and customer partnership"
represents a new concept that a company is made up not just of its employees, its board members, and executives, but also its business partners, its suppliers, and its customers.
Exceptional customer service results in greater customer retentionSadly, mature companies often forget or
forsake the thing that made them successful in the first place: a customer-centric business model. They lose focus on the customer and start focusing on
the bottom line and quarterly results. They look for ways to cut costs or increase revenues, often at the expense, which in turn results in higher profitability.
A Synergistic Combination of Four Capabilities
Entrepreneurial creativity is a synergistic combination of four capabilities:
1.Creative, lateral and systems thinking skills
3.Internal motivation (fun-driven creativity) and external motivation (creativity under the gun)
4.Entrepreneurial action and technology of achievement.
Continuous Innovative Activity
"Creativity is a continuous activity for the entrepreneur, always seeing new ways of doing things with little concern for how difficult they might be or whether the resources are available. But the
creativity in the entrepreneur is combine with the ability to innovate, to take the idea and make it work in practice. This seeing something through to the end and not being satisfied until all is
accomplished is a central motivation for the entrepreneur. Indeed once the project is accomplished the entrepreneur seeks another 'mountain to climb' because for him or her creativity and
innovation are habitual, something that he or she just has to keep on doing.” ("Entrepreneurs," Bill Bolton and John Thompson, 2000) This is why entrepreneurs disturb markets, 'thrive on chaos',
and can challenge large established businesses.
Tips for Forcing Combinations
Six Components of Business MODEL
1.Value Proposition – a description of the customer problem, the solution that addresses the problem, and the value of this
solution from the customer's perspective.
2.Market Segment – the group to target, recognizing that different market segments have different needs. Sometimes the potential
of an innovation is unlocked only when a different market segment is targeted.
3.Value Chain Structure – the firm's position and activities in the value chain and how the firm will capture part of the value
that it creates in the chain.
4.Revenue Generation and Margins – how revenue is generated (sales, leasing, subscription, support, etc.), the cost structure,
and target profit margins.
5.Position in the Value Network – identification of competitors, complementors, and any network effects that can be utilized to
deliver more value to the customer.
6.Competitive Strategy – how the company will attempt to develop a sustainable competitive
advantage and use it to improve the enterprise's competitive position in the market.
Business Models for Social Media Startups
During the first Internet boom, the most common business model was probably, “get a ton of traffic, then figure out how to make money” — which savvy readers will note isn’t a very good business
model. Often, the way those businesses attempted to make money on that traffic was to use display or text advertising. Making money from advertising is still possible, but it’s no longer as easy as
building a site and putting some ads on it. Fortunately, there are a number of business models to choose from.
Today’s social media startups are finding unique ways of generating revenue from the very beginning. Here are a few of the revenue models that they’re using and how you can apply them to your
Business Planning and Developing an Infrastructure
Today's business success comes as a result of careful planning . You must have a detailed written business plan that clearly defines what the ultimate goal is business to business,e-business, b2b
b2c, the reason you are pursuing the goal, and each milestone that must be passed in order to reach your goal.
It is an operational plan for achieving your goal. A complete success story is required to define your basic product, income objectives and specific operating procedures. To attract investors,
obtain financing and hold onto the confidence of your creditors, particularly in times of cash flow shortages, a business plan is imperative.
It provides an overall directional policy for the production, sales effort and profit goals of your product. It will be the basis or foundation of any financial proposals you submit. It is a long
range "map" to guide your company to the goal you've set. The details the what, why, where, how and when, of your company.
Writing a "winning" idea takes research and time. Don't try to do it all in just one or two days. Once you start, thousands of thoughts concerning it will begin racing through your mind. It's a
good idea when you aren't actually working on your idea, to carry a pocket notebook and jot ideas down as they come -- for sales promotion, recruiting distributors, channel distribution, and other
thoughts on how to operate and/or build your company. Later, evaluate your ideas, refine them, and integrate them into the overall picture.
This is a logical organization of information every plan should cover. Take an objective and critical look at your ideas. Putting it all down on paper (a word processing program) allows you to
change and refine it to function in the manner of a smoothly oiled machine. You'll spot weaknesses and strengthen them before they develop into problems. This will become an operating manual and
valuable tool to keep on track, and guide you into a profitable, well-managed operation.
Because it's your idea, it's important that you are directly involved in the work. Seek out the advice of other people; talk with, listen to, and observe other people running similar businesses.
Enlist the advice of consultants, accountants and attorneys -- but don't ever forget it has to be your idea! Statistics prove the greatest cause of failure is poor management and lack of
foresight. Without direction by which to operate, no one can manage. Without a direction in which to aim its efforts, no company can attain any real success.
Group Professionals specializes in writing business plans and executive summaries for success. Please contact us for free consultation concerning your plan.
Business Evaluation Services is a National Mystery Shopper Service Provider
Quality, integrity and strong work ethics are our foundation to success.
We offer a variety of mystery shopper programs and tools that can assist you in your efforts to increase your sales and company growth. By utilizing our customer service mystery shopping evaluation
program,you will benefitby:
- Our secret shoppers help you gain insight into what your customers believe about your products
- Increased profitability through higher closing rates
- Growing your repeat base of business due to higher customer service satisfaction
- Our Mystery shopping program offers the ability to learn specific areas your employees could benefit from by additional training
- Higher retention rates due
© Copyright 2016 sajidsfa. All rights reserved.