Concept of Business Model Design Free-Samples-Myassignment.com

Question: Discuss about the Concept of Business Model. Answer: Business model is a concept that is visualized by many researchers. According to Itami and Nishino, a business model is a composition of two major elements such as a business system and a profile model. However, the profit model use to be more important than the business system since it provides the company the revenue. Along with that, the future growth potential is also measured by the monetary terms hence the profitability is more important than the system model in any business (Itami Nishino, 2010). The importance of such model does not lie in the discrimination among the size or similar characteristics of a business. According to the Zott and Amit, a business model designing is a key decision for an entrepreneur and it is crucial and difficult to determine the characteristics of a particular business. The article by Zott and Amit argues on the perspective of the activity system of a business model. The article states that, the activity system of a business model used to be cons istent with various approaches and these can be viewed as the template of the business model of a firm. The article states that, the business model is conceptualized by the gearing towards total value creation of all the parties involved in a particular entity (Zott Amit, 2010). The concept of business model can be defined by various means. There are many things involved when someone conceptualizes the business model such as the perception, real experiences in many firms and thought process of a person. The conceptualization may regard as the design themes. The design themes can include the pursuance of novelty along with the efficiencies of a person. Apart from that, the design elements can also be involved in the conceptualization of business model. The designing elements are about the specification and structural definition of the content, structure and various governance modes of a particular business model. According to the Zott and Amit, there are various advantages involved in conceptualizing the business models and these lies with the action system or visualize as a set of some bounded activities. The article states that, the activity system along with the bounded activities allows the managers to adopt a conceptual framework to discuss the characteristics of the business model and encouraging various holistic f orms with critical thoughts (Zott Amit, 2010). There are other components too involved in the conceptualization of the business models as a system. The business model as systems can be used solve static and dynamic problems since, a system is considered as a complex surrounding with few dependent and independent parts which depict various activities in a particular firm. The components of the systematic model can be used to depict the internal and external connection among the activities in an organization (Morris et al, 2015). Along with that, the system concept defines the logical activities and the value chain logic is relevant for this purpose to resolve the static and dynamic problems of a business. The dynamic approaches as defined by Itami and Nishino, can incorporate the internal and the external learning about the firms value chain that consists of the outbound logistics, Services, Operations and the inbound logistics along with the procurement can help to understand the facts about the partnership policies of a firm (Itami Nishino, 2010). The delivery system is considered as the main part of the system concept by which the learning activities can be performed for the understanding of the partnership strategies of a particular firm. In an article, Kodama has discussed about the case study sating about the Japanese firms and the research concludes that, the organizational boundaries can be aimed at the marketing innovation and the technological advancement in the business process. The business model as systems can be utilized to understand the innovation process of a firm since, the study will accumulate the path-dependent knowledge along with dynamically integrating the diverse knowledge of the internal and the external environment of the firm. Kodama has discussed in his article about the knowledge integration and shown that, the process of knowledge integration takes places through the networking environment inside and outside the firm (Kodama, 2009). The internal knowledge can be integrated through various medium of the internal networking systems and the external knowledge can be accessed by the external set up of network support of the organization. The study by Kodama illustrates the concept of boundary in novation along with the dynamic human networks. The study suggests that, the business as system can be utilized to analyze the innovation process management in a firm by the dynamic human networks and the structural knowledge integration process (Kodama, 2009). The article by Kodama has developed the concept of business model with the discussion on the knowledge integration process. For example, the Japanese firm NTT Data Corporation can be taken for the purpose of the detailed discussion. The company NTT Data corporation is the largest telecommunication carrier and the firm has implemented the knowledge integration model (Kodama, 2009). The article discusses that, the NTT uses the knowledge integration model to integrate the heterogeneous knowledge of the internal and external environment of the firm. Along with that, the company is approaching for the new product developments and regularly evaluating their business model to achieve the win-win situation for the business (Kodama, 2009). The company has also integrated vertically with the help of value chain model to promote the competitive position in the tech market of Japan. The knowledge integration model is implemented in the internal and external networking of the firm. With this mode l the company has minimized the corporate boundaries and achieved the global position in the corporate world (Kodama, 2009). The article by Kodama is more detailed with examples on the business model concepts. The article has focused on the business model of the Japanese firms and discussed the importance of the innovation process in the business model of the technology based Japanese firms. The study has discussed the knowledge integration process on the networking environment of a business and the dynamic business models (Kodama, 2009). The framework of the conceptualization as mentioned by Kodama is as follows (Source: Kodama, 2009) The study has concluded that, the there are four types of knowledge integration models which includes the entire system and business processes of a particular organization. The conceptualization has helped to construct the core competences of a firm with the frequent technological change and the boundary concepts too (Kodama, 2009). The study of the three articles has approached to the concept and diversities in conceptualization of the business models of various firms as system. The article by the Demil Lecocq has introduced three broad categories of research such as the static view, the dynamic view and the boundary delineating view of the business models. The study of the article by Zott and Amit has detailed the concept of business model by explaining the design themes and elements along with the advantages and the disadvantages. The study of the article by Itami and Nishino has conferred that the profit model is more important than the business system in any business model, though the business system has a invisible context that affect the business processes. However, the profitability is more concentrated in every business and considered by every business approaches. The profitability helps a firm to sustain in a competitive market, but the business system is important to achieve the perceived profit marg ins by an organization. The study of Kodama has discussed the importance of the knowledge integration by various examples of Japanese firms referring with the concepts of business models and boundaries. References Demil, B., Lecocq, X. (2010). Business model evolution: in search of dynamic consistency.Long range planning,43(2), 227-246. Itami, H., Nishino, K. (2010). Killing two birds with one stone: profit for now and learning for the future.Long Range Planning,43(2), 364-369. Kodama, M. (2009). Boundaries innovation and knowledge integration in the Japanese firm.Long Range Planning,42(4), 463-494. Morris, M., Schindehutte, M., Richardson, J., Allen, J. (2015). Is the business model a useful strategic concept? Conceptual, theoretical, and empirical insights.Journal of Small Business Strategy,17(1), 27-50. Zott, C., Amit, R. (2010). Business model design: an activity system perspective.Long range