We have framework, architecture, and model. Are they ever useful? More Questions
What is a
BusinessModel? Why should people care about having a
BusinessModel? Is it one of those
BusinessPatterns that can be successfully transplanted elsewhere? To some, it may remain a kind of
MeaninglessDoublespeak. But I can assure you a few practitioners in the arena of
BusinessProcessManagement care about
BusinessModels.
So is
BusinessModel a
StrategicManagement concern? If so, is it a concern of those engaged in activities related to
StrategicAlignmentOfItProductsAndServices?
How does
InformationTechnologyFrameworks link into a
BusinessModel?
Other questions:
A researcher, who participated in significant projects in a few different continents, came in for a presentation at our workplace and argued the process of doing
BusinessModeling facilitates communication within the company as one benefit. I will try to get more of his thoughts but I have nothing to contribute; maybe the collective wisdom of this
WikiCommunity will provide sufficient enticement for him to provide more information and details.
Meanwhile, I have to resort to research to add content to this page.
ChangeManagement for BusinessModel - ImpedanceMismatch
The above expert did say from his work with various organizations he got to recognize a
BusinessModel can have significant change within a short time period. (Gives a bit of a hint on his "vision" of
BusinessModel.) He also recognizes multi-year IT projects do not change their course quickly (e.g. large
EnterpriseResourcePlanning package implementation, BTW
WhyIsPayrollHard is a good reading for those of us wanting not privileged with the
BigPicture of
WhyAreWeAllHere looking at
BusinessModel).
PaveThePath as a solution?
I suggested to him if
BusinessModels change quickly, companies should spend energy looking at using
ScenarioPlanning techniques to provide
BusinessContinuity for
BusinessModels. I was not satisfied with his responses.
HumanFactors
Capabilities are not associated with processes, they live within the
HumanResources which define, own, manage, operate the processes. These "resources" collectively have this characteristic called
OrganizationCulture, which is neither homogeneous nor harmonious.
StrategyExecution rely on the unreliable
A proper
BusinessModel will need consideration of the limited amount of capabilities that exist in the
HumanResources, and the limited speed that an
OrganizationCulture can change. I am hoping for some contribution (e.g. good and accessible reading material) included here, that will be useful in matters related to developing
BusinessModels and implementation strategies.
ToyotaProductionSystem (TPS) - LessIsMore and more
I view this as a
BusinessModel. Apparently Toyota has set up centres in the US teaching other companies to improve,
TheToyotaWay.
It is possible they are betting that the copycats cannot take a longterm view, and therefore their investments will exceed returns.
BusinessModel Equals Function
If you consider a particular business as a system, the Business
Model corresponds pretty exactly to the function of that system. The business in operation is a combination of function and performance. As with many complex systems, it can sometimes be difficult to distinguish between the two. The
BusinessModel includes the raw function of what economists refer to as its "industry" (it's a bank or an airline, a retailer or a newspaper, for example), but can also include particular ways of operating the raw function (a mortgage bank or low-cost airline, a discount retailer or a "quality" newspaper, for example). Thus the Business
Model "function" can shade into "performance" when particular approaches to types of customer, levels of service and brand ethos are considered. As a general rule, it may seem easier to change the more peripheral "performance" aspects of the Business
Model than the core "function"; it is more usual to add new "function" or remove existing "function".
Reading Material
ChangeManagement and
BusinessModel. See a 2005 blog at
http://www.iproceed.com/blog/2005/01/change-management-experts-excited-by.html.
An overview of
ScenarioPlanning is available at
http://www.kairosfuture.se/upload/pdf/Scenarioplanning_kapitel2.pdf.
HumanResources related. May05 Wharton School study titled "The Effect of HRM ...Worker Productivity" at
http://knowledge.wharton.upenn.edu/papers/1300.pdf
CategoryManagement