Our findings suggest that no single theory of entrepreneurship or strategic management can fully explain the value creation potential of e-commerce. Rather, it requires an integration of the theoretical perspectives received on value creation. In order to enable such integration, we propose the construction of the business model as a unit of analysis for future research on value creation in e-commerce. A business model describes the design of the content, structure, and governance of transactions to create value by taking advantage of business opportunities. We propose that a company`s business model be an important place of innovation and a crucial source of value creation for the company and its suppliers, partners and customers. The few that will stand the test of time could probably lead to the next blockchain giants. A compelling case of innovation based on a blockchain-based business model is Steemit: […] You can`t afford to lose users en masse because email accounts are in their business model, but that`s another […] Most of the examples of business models we have described in this article can be combined to generate more revenue for your business. An example of how Google companies like is that they continue to invest the most resources in their core business model, while placing other bets that tend to create not only a completely new business model, but also entirely new sectors. As consumer brands have shown, the freemium model could be both a great go-to-market strategy and generate a continuous flow of qualified leads (but only after the entire organization has organized itself around identifying such opportunities), other B2B/business companies (those that sell primarily to other companies or larger companies) have also learned the freemium model, but on a B2B scale. Designing and executing business models for an entrepreneur is like designing and conducting experiments for scientists. The chosen model must meet the needs and expectations of the customer. For example, if you take the subscription model approach, you`ll be doing customers a disservice if you also include advertising. It is important to remember that a business model is not a business plan.
In fact, one of the most common beliefs is that business models can be described on a piece of paper and work in the real world. My model isn`t as scalable and requires more staff, but it can generate a lot more money. Just look at advertising agencies like WPP and Dentsu. They generate billions in revenue! The integrated family model assumes that even if you`ve built a multi-billion dollar business, you can control it in its entirety while maintaining an agile decision-making process based on a proprietary structure that holds control of the organization in the hands of the family. Business model is a term that people often use, but most of them don`t really understand what it means. Chen (2009) argues that the business model must take into account the capability of Web 2.0, which includes collective intelligence, network effects, user-generated content, and the possibility of self-enhancing systems. It therefore suggests that the service industry, as well as the transport, hospitality, hospitality, information, online gaming and communication technology industries, can benefit from the opportunity to adopt business models that take into account the characteristics of Web 2.0. He adds that Business Models 2.0 must take into account not only the impact of Web 2.0, but also network effects: he cites as an example the story of Amazon, which can generate huge revenues each year by developing an open platform that supports a community of companies that reuse Amazon`s on-demand commerce services[19]. On an open source model, the free product is built, developed and partially maintained by an open community of developers. Matter.
It`s already July and it`s our good habit to provide some summer “good readings.” This year we`re doing it with a topic we`ve covered in different ways, but more than specific ideas and never complete (assuming it can be done in a few lines). Let`s talk about business models. We will do this in two parts. In the first (these) analysis, some of the elements to consider. In the second (next article), the most popular business models will be analyzed. The process of building and modifying a business model is also known as business model innovation and is part of the business strategy. [2] [3] Sangeet Paul Choudary (2013) in an article published in Wired Magazine[15] Divides business models into two main families: pipes Business Models and Platforms Business Models. In the case of pipe models, companies create goods and services, distribute them and sell them to consumers.
The value is generated upstream and consumed downstream, according to a linear flow (hence the name pipe or pipe). In contrast, in platform models, companies don`t just create and distribute goods, but allow consumers to create and consume value. Therefore, a successful business model is usually the result of this process. The widespread use of business models was born with the advent of the PC, which allows you to test and model the different components of a company. Before that, successful business models were usually created by chance and not by design. But it`s different for business plans and business strategies. The great value of the Business Model Canvas is not only to explain the components of your company`s business model (which, I assure you, in my experience, few companies have really clear). The great advantage of this model is that it clearly shows how the different elements interact with each other and how a change in an element in one of the nine blocks affects another block.