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.
Notes
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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.
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.
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.
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.
Magretta Joan, “Why Business Models Matter”, Harvard Business Review, vol. 80, no 5, 2002, p. 86–92.
Zook Chris and Allen James, “The Great Repeatable Business Model”, Harvard Business Review, vol. 89, no 11, 2011, p. 107–114.
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.
Johnson Mark W., Christensen Clayton M. and Kagermann Henning, “Reinventing Your Business Model”, Harvard Business Review, vol. 86, no 12, 2008, p. 57–68.
Kim W. Chan and Mauborgne Renée, Blue Ocean Strategy, Harvard Business School Press, Cambridge, 2005.
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.
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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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