For-Profit Organization Model
A For-Profit Organization Model is an organizational model of a for-profit organization.
- AKA: Business Model.
- Context:
- It can be represented in a Business Plan (produced by a For-Profit Organization Modeling Task).
- It can (often) contain a For-Profit Organization Process Model.
- It can be referenced by a Business Mission, Business Vision, and Business Plan.
- It can have a Payment Model, such as prepay or post-pay.
- It can have a Quantity Sold Model, such as a a la carte, prix fixe, buffet, or subscription.
- …
- Example(s):
- Counter-Example(s):
- See: Business Mission, Business Strategy, Startup Company, Business Model Canvas.
References
2024
- (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/business_model Retrieved:2024-4-18.
- A business model describes how an organization creates, delivers, and captures value,[1] in economic, social, cultural or other contexts. For a business, it describes the specific way in which it conducts itself, spends, and earns money in a way that generates profit. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.[2]
In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of an organization or business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, profit structures, sourcing, trading practices, and operational processes and policies including culture.
- A business model describes how an organization creates, delivers, and captures value,[1] in economic, social, cultural or other contexts. For a business, it describes the specific way in which it conducts itself, spends, and earns money in a way that generates profit. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.[2]
2016
- https://hbr.org/2016/07/kodaks-downfall-wasnt-about-technology
- QUOTE: Companies often see the disruptive forces affecting their industry. They frequently divert sufficient resources to participate in emerging markets. Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business.
So, if your company is beginning to talk about a digital transformation, make sure you ask three questions:
- What business are we in today? Don’t answer the question with technologies, offerings, or categories. Instead, define the problem you are solving for customers, or, in our parlance “the job you are doing for them.” For Kodak, that’s the difference between framing itself as a chemical film company vs. an imaging company vs. a moment-sharing company.
- What new opportunities does the disruption open up? Our colleague Clark Gilbert described more than a decade ago a great irony of disruption. Perceived as a threat, disruption is actually a great growth opportunity. Disruption always grows markets, but it also always transforms business models. Gilbert’s research showed how executives who perceive threats are rigid in response; those who see opportunities are expansive.
- What capabilities do we need to realize these opportunities? Another great irony is that incumbents are best positioned to seize disruptive opportunities. After all, they have many capabilities that entrants are racing to replicate, such as access to markets, technologies, and healthy balance sheets. Of course, these capabilities impose constraints as well, and are almost always insufficient to compete in new markets in new ways. Approach new growth with appropriate humility.
- QUOTE: Companies often see the disruptive forces affecting their industry. They frequently divert sufficient resources to participate in emerging markets. Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business.
- https://en.wikipedia.org/wiki/Category:Business_models
- … Cashier-as-a-Service, … Component business model, ..., Content as a Service, ..., Subscription business model, …
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/business_model Retrieved:2015-5-11.
- A business model is an "abstract representation of an organization, be it conceptual, textual, and/or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals
and objectives."[3] This definition by Al-Debei and Avison (2008) indicates that value proposition, value architecture, value finance, and value network articulate the primary constructs or dimensions of business models.[4]
A business model describes the rationale of how an organization creates, delivers, and captures value,[1] in economic, social, cultural or other contexts. The process of business model construction is part of business strategy.
In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies. The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey defines business models as the design of organizational structures to enact a commercial opportunity.[5] Further extensions to this design logic emphasize the use of narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms.[6]
Business models are used to describe and classify businesses, especially in an entrepreneurial setting, but they are also used by managers inside companies to explore possibilities for future development. Well-known business models can operate as "recipes" for creative managers. Business models are also referred to in some instances within the context of accounting for purposes of public reporting.
- A business model is an "abstract representation of an organization, be it conceptual, textual, and/or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals
- ↑ 1.0 1.1 Business Model Generation, Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010 Cite error: Invalid
<ref>tag; name "Osterwalder2010" defined multiple times with different content - ↑ Cite error: Invalid
<ref>tag; no text was provided for refs named:1 - ↑ Al-Debei, M. M., El-Haddadeh, R., & Avison, D. (2008). “Defining the business model in the new world of digital business." In Proceedings of the Americas Conference on Information Systems (AMCIS) (Vol. 2008, pp. 1-11).
- ↑ Al-Debei, M. M., & Avison, D. (2010). Developing a unified framework of the business model concept. European Journal of Information Systems, 19(3), 359-376.
- ↑ George,G and Bock AJ. 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35(1): 83-111
- ↑ George,G and Bock AJ. 2012. Models of opportunity: How entrepreneurs design firms to achieve the unexpected. Cambridge University Press, ISBN 978-0-521-17084-0
2014
- https://www.sba.gov/starting-business/write-your-business-plan
- QUOTE: A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.
- … Company Description: Your company description provides information on what you do, what differentiates your business from others, and the markets your business serves.
- QUOTE: A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.
2010
- (McGrath, 2010) ⇒ Rita Gunther McGrath. (2010). “Business Models: A Discovery Driven Approach.” In: Long range planning, 43(2).
- QUOTE: The business model concept offers strategists a fresh way to consider their options in uncertain, fast-moving and unpredictable environments. In contrast to conventional assumptions, recognizing that more new business models are both feasible and actionable than ever before is creating unprecedented opportunities for today's organizations. … Business model analysis also gives us a sense of firms in action. But this dynamic perspective is not central to two ideas about the genesis of competitive advantage that are well-accepted in strategy: the industry positioning view or the so-called resource-based or dynamic capability view.
2008
- (Johnson et al., 2008) ⇒ Mark W. Johnson, Clayton M. Christensen, and Henning Kagermann. (2008). “Reinventing Your Business Model." Harvard business review 86, no. 12