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(Re)Designing the Business Model

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Abstract

Who are my clients? What do they consider valuable? How can we generate revenue by offering what they really want? What is the best profit formula to create value for clients at an appropriate cost for the company? By providing the right answer to these questions, this chapter seeks to help the company implement its strategy effectively by designing the business model that reflects its entrepreneurial, technological, and organisational choices. The process should allow the generation of a differentiated model that will be better than existing alternatives. The competitive advantage will emerge from either delivering more value to a specific clientele, or rethinking the way to create value more effectively by implementing a new set of best practices that put the company ahead of the competition.

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Notes

  1. 1.

    Magretta Joan , “Why Business Models Matter”, Harvard Business Review, vol. 80, no 5, 2002, p. 86–92.

  2. 2.

    Porter Michael E., “What Is Strategy?”, Harvard Business Review, vol. 74, no 6, 1996, p. 61–78.

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    Kim W. Chan and Mauborgne Renée, “Creating New Market Space”, Harvard Business Review, vol. 77, no 1, 1999, p. 83–93.

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    Johnson Mark W., Christensen Clayton M. and Kagermann Henning, “Reinventing Your Business Model”, Harvard Business Review, vol. 86, no 12, 2008, p. 57–68.

  5. 5.

    Casadesus-Masanell Ramon and Ricart Joan E., “How to Design a Winning Business Model”, Harvard Business Review, vol. 89, no 1–2, 2011, p. 100–107.

  6. 6.

    Zott Christoph , Amit Raphael and Massa Lorenzo, “The Business Model: Recent Developments and Future Research”, Journal of Management, vol. 37, no 4, 2011, p. 1019–1042.

  7. 7.

    Miles Raymond E. and Snow Charles C., Organizational Strategy, Structure and Process, Stanford University Press, Stanford, 2003.

  8. 8.

    Demil Benoît and Lecocq Xavier, “Business Model Evolution: In Search of Dynamic Consistency”, Long Range Planning, vol. 43, no 1, 2010, p. 227–246.

  9. 9.

    Van Alstyne Marshall W., Parker Geoffrey G. and Choudary Krishna, “Pipelines, Platforms, and the New Rules of Strategy”, Harvard Business Review, vol. 94, no 4, 2016, p. 54–62.

  10. 10.

    Wirtz Bernd W., Schilke Oliver, and Ullrich Sebastian, “Strategic Development of Business Models – Implications of the Web 2.0 for Creating Value on the Internet”, Long Range Planning, vol. 43, 2010, p. 272–290.

  11. 11.

    PwC, “2015 US CEO Survey: Top Findings—Grow and Create Competitive Advantage”, n.d., www.pwc.com

  12. 12.

    Lindgardt Z. and Ayers M., “Driving Growth with Business Model Innovation”, October 8, 2014, www.bcg.perspectives.com

  13. 13.

    Christensen Clayton M., Bartman Thomas, and Van Bever Derek, “The Hard Truth About Business Model Innovation”, MIT Sloan Management Review, vol. 58, no 1, 2016, p. 30–40.

  14. 14.

    Govindarajan Vijay, “Planned opportunism”, Harvard Business Review, vol.94, no 5, 2016, p. 54–61.

  15. 15.

    Kavadias Stelios, Ladas Kostas and Loch Christoph, “The transformative business model”, Harvard Business Review, vol. 94, no 10, 2016, p. 91–98.

  16. 16.

    Zook Chris and Allen James, “The Great Repeatable Business Model”, Harvard Business Review, vol. 89, no 11, 2011, p. 107–114.

  17. 17.

    Osterwalder Alexander and Pigneur Yves, Business Model Generation, John Wiley & Sons, New York, 2010.

  18. 18.

    Kim W. Chan and Mauborgne Renée, Blue Ocean Strategy, Harvard Business School Press, Cambridge, 2005.

Further Reading

On the Different Types of Business Models and Their Construction

  • Osterwalder Alexander and Pigneur Yves, Business Model Generation, John Wiley & Sons, New York, 2010.

    Google Scholar 

  • Van Alstyne Marshall W., Parker Geoffrey G, and Choudary Sangeet Paul, “Pipelines, Platforms, and the New Rules of Strategy”, Harvard Business Review, vol. 94, no 4, 2016, p. 54–62.

    Google Scholar 

  • Wirtz Bernd W., Schilke Oliver and Ullrich Sebastian, “Strategic Development of Business Models – Implications of the Web 2.0 for Creating Value on the Internet”, Long Range Planning, vol. 43, 2010, p. 272–290.

    Google Scholar 

On the Strategy/Business Model Relationship

  • Casadesus-Masanell Ramon and Ricart Joan E., “How to Design a Winning Business Model”, Harvard Business Review, vol. 89, no 1–2, 2011, p. 100–107.

    Google Scholar 

  • Magretta Joan, “Why Business Models Matter”, Harvard Business Review, vol. 80, no 5, 2002, p. 86–92.

    Google Scholar 

  • Zook Chris and Allen James, “The Great Repeatable Business Model”, Harvard Business Review, vol. 89, no 11, 2011, p. 107–114.

    Google Scholar 

On Business Model Innovation

  • Christensen Clayton M., Bartman Thomas, and Van Bever Derek, “The hard truth about business model innovation”,MIT Sloan Management Review, vol. 58, no 1, 2016, p. 30–40.

    Google Scholar 

  • Johnson Mark W., Christensen Clayton M. and Kagermann Henning, “Reinventing Your Business Model”, Harvard Business Review, vol. 86, no 12, 2008, p. 57–68.

    Google Scholar 

  • Kim W. Chan and Mauborgne Renée, Blue Ocean Strategy, Harvard Business School Press, Cambridge, 2005.

    Google Scholar 

  • Nunes Paul and Breene Tim, “Reinvent Your Business Model Before It’s Too Late”, Harvard Business Review, vol. 89, no 1–2, 2011, p. 80–87.

    Google Scholar 

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Chereau, P., Meschi, PX. (2018). (Re)Designing the Business Model. In: Strategic Consulting. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-64422-6_7

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