Grasp The Essence And Success Factors Of "Business Model Innovation"

As for the definition of business model, although there are various versions of the description, the core content is basically the same: the business model of enterprises refers to a systematic description of the business logic of how enterprises earn money from the strategic level of enterprises.

In essence, the business mode is to solve the problem of where to earn money, how to earn money, and what money can be earned.

Therefore, from the perspective of organizational execution capability, we need to sort out the success factors of business models from the latitude of business value chain and the latitude of executive mode.

From the perspective of the value chain of business models, a complete business model involves three major links -- market interaction, internal links and external collaboration.

Among them, the market interaction should solve the problem of creating value and creating value for them; the internal links of enterprises mainly solve how to create value and profit; the external collaboration mainly depends on which social resources and external cooperative organizations to achieve value creation and profitability.

According to different enterprises' resource status, capability, value concept and cultural habits, different enterprises have different concerns in these links. They will choose different key nodes for value orientation and value creation, and choose different ways of making profits.

However, no matter how to choose, to ensure that the profit model of the design is realized, the basic common requirement is that the value creation activities of every link must be coherent, the flow of value must be smooth, and the upper and lower sides must cooperate, so as to ensure that the overall input and output ratio is higher than that of the competitors.

Therefore, it is difficult to ensure the realization of business model innovation if we only pay attention to the market segments, but ignore the internal links of enterprises or the value flow of external collaboration.

From the perspective of the executive capability of business models, business models must be effectively implemented if they want to be pformed from blueprints to performance results, that is, the synergy and interaction between the three levels of innovative business models and organizational execution systems must be achieved at the level of strategic structure, organizational system and employee behavior. To achieve effective innovation of business models, these three levels of management systems also need to revolve around and optimize new business models.

Only by implementing the synergy and effective interaction between the organizational system and the innovative business mode and the system can the innovative business model be truly implemented and realized.

Therefore, the organizational system elements related to the execution capabilities of these three levels must be incorporated into the concerns of business mode pformation.

If we just stay at the level of customer selection and customer value proposition based on external market opportunities, or only consider the strategic design of business models, we ignore the corresponding innovation and synergy in implementing organizational system level and employee behavior level, or in business mode.

In the process of change, the change of organizational system and employee behavior system is neglected, and the pformation of business mode is obviously impossible.

"Three points strategy"

"In fact, in the enterprises with problems, the level of improvement and synergy and interaction at the organizational level and staff level are often the blind spots which are not concerned in the process of business model innovation. Therefore, they often become the key elements to decide whether the business model can be perfected, whether it can be effectively implemented and whether it can achieve the desired goal in the competition.

Realization

Five elements of innovation.

Through the analysis of the above two latitudes, we can see clearly that the process of business mode innovation is the process of organizational pformation from strategic design, organizational system design to organizational capability reconstruction.

The innovation and Realization of business models should not only focus on the realization of business models and business models along the value chain, but also focus on the support of business models, such as management and control mode, organization structure, process structure, personnel structure, resource structure and behavior mode.

Therefore, the innovation project of business mode must focus on five aspects:

1, clear customer positioning and value proposition.

2, realize the design of value and profit mode.

3, core process and organizational support system

4, key capabilities and resource integration

5, human resources and cultural support system

Among them, the latter three elements related to the executive ability of the organization are the contents that this article should pay special attention to.