Let's discuss with more detail what is covered by a business model in an industrial enterprise. Starting by the purpose of us knowing it and diving down into what a TRUE business model should explain about a given enterprise.
As you would know, a business model is a fundamental concept in the realm of industrial enterprises and all types of businesses. It outlines the core structure and approach of how an enterprise intends to create, deliver, and capture value. It serves as a comprehensive framework that includes various aspects, and it's crucial for understanding and managing the operations of an industrial enterprise. Here are the details of what a comprehensive business model for an industrial enterprise would ideally encompass:
1. Purpose of a Business Model:
The purpose of a business model is to provide a holistic understanding of how an industrial enterprise operates. It serves as a blueprint that guides decision-making, strategy development, and resource allocation. A well-defined business model should explain:
2. Value Proposition:
- What products or services does the enterprise offer, and what value do they bring to customers? This section should clearly outline the unique selling points and benefits provided.
3. Customer Segments:
- Who are the target customers for the enterprise's products or services? Identifying and understanding customer segments is vital for effective marketing and sales strategies.
4. Revenue Streams:
- How does the enterprise generate revenue? This section should detail pricing strategies, sales channels, and revenue sources.
5. Key Resources:
- What are the critical resources required for operations? This encompasses physical assets, technology, human resources, and other essentials.
6. Key Activities:
- What are the core activities that the enterprise must perform to deliver its value proposition? This includes manufacturing, distribution, and customer support.
7. Key Partnerships:
- Are there external entities or partners crucial for the enterprise's operations? This section should describe collaborations, alliances, and partnerships.
8. Cost Structure:
- What are the major costs involved in running the enterprise? Understanding the cost structure is essential for budgeting and profitability analysis.
9. Distribution Channels:
- How does the enterprise reach its customers? The distribution channels, whether direct sales, retail, online, or intermediaries, are important aspects.
10. Competitive Advantage:
- What sets the enterprise apart from competitors? This can include factors like technology, intellectual property, or operational efficiency.
11. Market Analysis:
- What is the current state of the market in which the enterprise operates? An in-depth analysis of the industry, trends, and competitors is critical.
12. Risk Assessment:
- What are the potential risks and challenges that the enterprise may face? Identifying and mitigating risks is essential for long-term success.
13. Growth Strategy:
- How does the enterprise plan to expand and grow? This should include short-term and long-term strategies for scaling the business.
14. Sustainability and Social Responsibility:
- In the modern context, addressing sustainability and social responsibility aspects is important. This includes environmental impact, ethical practices, and social contributions.
In short, a comprehensive business model for an industrial enterprise will cover a wide range of aspects, from the fundamental value proposition to market analysis, growth strategies, and considerations of sustainability and responsibility. It will serve as a guiding framework that will help the enterprise navigate the complexities of the business world, make informed decisions, and adapt to changing market conditions. Understanding and articulating this model is vital for the enterprise's success and longevity.
Hope this helps!
A business model encompasses the fundamental strategy and framework through which a company creates, delivers, and captures value in the market. It encompasses revenue streams, cost structures, customer segments, channels, and key resources and activities.
Nitin Saini Isn't this just citing the Canvas of Osterwalder?
I recommend you to see the following research, which is meta-analysis on the topic:
Thesis New business model ontology, examined as a bearer of cogniti...
En el contexto de una empresa industrial, un modelo de negocio considera todos los aspectos de la operación, desde la producción y la distribución hasta la comercialización y la rentabilidad.
Algunos elementos claves podrían ser: Propuesta de valor: Este es el valor que la empresa ofrece a sus clientes a través de sus productos o servicios industriales. Es su diferenciación de los demás, puede incluir características técnicas, calidad, rendimiento, durabilidad, innovación, precios competitivos u otros beneficios específicos.
Logística de distribución: Importante que los productos o servicios lleguen a tiempo al cliente y en buen estado; Esto incluye la venta directa a través de representantes de ventas, ventas en línea, distribución a través de socios o distribuidores, entre otros
Relaciones con clientes: En este contexto, las relaciones con los clientes pueden incluir servicios de postventa, asistencia técnica, garantías, mantenimiento y otros aspectos que respalden la satisfacción y fidelidad del cliente
A business model is a conceptual framework that outlines how an industrial enterprise creates, delivers, and captures value (Osterwalder & Pigneur, 2010). It encompasses various aspects of the organisation, including its products or services, target market, revenue streams, cost structure, key resources and activities, as well as its competitive advantage. The purpose of understanding a business model in an industrial enterprise is to provide a clear understanding of how the company operates and generates profits (Osterwalder & Pigneur, 2010). It helps stakeholders, such as investors, employees, and customers, to understand the underlying strategy and logic behind the organisation's operations. Additionally, it serves as a roadmap for decision-making and resource allocation within the company. A true business model should explain several key aspects of an industrial enterprise: 1. Value Proposition: This describes the unique value that the enterprise offers to its customers and how it differentiates itself from competitors. It highlights the benefits customers receive from using the company's products or services (Osterwalder & Pigneur, 2010). 2. Customer Segments: This identifies the specific groups of customers that the enterprise targets with its offerings. Understanding customer needs and preferences allows businesses to tailor their products or services accordingly (Osterwalder & Pigneur, 2010). 3. Revenue Streams: This outlines how the company generates income through selling its products or services. It includes pricing strategies, sales channels, and any other sources of revenue (Osterwalder & Pigneur, 2010). 4. Cost Structure: This details all costs incurred by the organization in delivering value to customers. It includes both fixed and variable costs related to production, marketing, distribution etc., as well as any economies of scale or scope that may exist (Osterwalder & Pigneur, 2010). 5. Key Resources and Activities: This identifies the essential assets (physical, intellectual, human) required to deliver on the value proposition. It also outlines the core activities necessary for creating and delivering products or services (Osterwalder & Pigneur, 2010). 6. Partnerships and Relationships: This explains any external collaborations or alliances that are critical for sustaining the business model. These partnerships can include suppliers, distributors, technology providers or strategic alliances with other organizations (Osterwalder & Pigneur, 2010). 7. Competitive Advantage: This highlights the unique strengths and capabilities that give the enterprise an edge over its competitors. It could be based on factors such as product differentiation, cost leadership, customer service or proprietary technology (Osterwalder & Pigneur, 2010). One relevant publication on business models in industrial enterprises is "Business Model Generation" by Alexander Osterwalder and Yves Pigneur (2010). The book provides a comprehensive framework for designing, analyzing, and innovating business models. In conclusion, a business model in an industrial enterprise encompasses various aspects of the organization's operations and strategy. Understanding these elements helps stakeholders comprehend how the company creates value, generates revenue, manages costs and maintains a competitive advantage. Reference: Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. John Wiley & Sons.
I think a business model considers all aspects of an industrials enterprise, including its operations, revenue streams , customer segments, and cost structures.
A business model serves as a tool that designers utilize to outline the key actors, activities, and resources involved in a product. It also encompasses the value proposition offered to target customers, customer relationships, channels utilized, and financial considerations. By providing a comprehensive overview, a business model aids in identifying the necessary requirements to deliver the service effectively. Essentially, a business model describes the underlying logic of how an organization generates, delivers, and captures value.
Sorry my bad English.
Our students describe the company's business model using the form presented in the attached file.
Although positive improvements can be outlined, the classic business model based on total cost and total life cycle is evolving due to the increasing volatility, unpredictability and uncertainty. Furthermore, to adapt to new sustainability needs, more and more variables that escape traditional metrics must be introduced . For an answer to your question and further details refer to the following link.
https://roccomorelli.blogspot.com/2023/10/what-is-business-model-considering-all.html
What I understand about Business model late studies:
A business model to me is an approach a company takes to generate revenue and make profits from its products or services. It outlines the key aspects of a company’s operations, including its target audiences, revenue sources, cost structure, marketing and distribution strategies, and value proposition. A business model describes how a company plans to create, deliver, and capture value in the market. It typically includes the following:
1. Value proposition:This refers to the products and services the company offers and how it differentiates itself from competitors. (Osterwalder & Pigneur, 2010)
2. Target market:This refers to the specific group of customers the company is targeting and how it plans to reach them through marketing and distribution strategies. (Chan, 2018)
3. Sales channels:This refers to the methods and channels used to sell products or services, which may include direct sales, online sales, or third-party distribution. (Osterwalder & Pigneur, 2010)
4. Revenue streams:This refers to the sources of revenue for the company, including pricing strategies, sales volumes, and pricing models. (Robbins, 2020)
5. Supply chain:This refers to the processes the company uses to acquire, produce, and distribute goods or services to customers. (Juetten, 2021)
6. Key resources and activities: This refers to the resources and activities necessary to create and deliver the products or services, including human resources, technology, and infrastructure. (Osterwalder & Pigneur, 2010)
7. Cost structure:This refers to the expenses required to run the business, including fixed and variable costs. (Peters, 2019)
8. Competitive advantages: This refers to the advantages the company possesses that make it unique and enable it to compete effectively in the market. (Osterwalder & Pigneur, 2010)
Uber and AirBnb are business models. They were innovative and created standards for their respective sectors of activity.
Sorry, I am not answering this question like a research academic.
But as a teacher, making concept easy and explaining to young students
The business model is a black box in which, from one end, you input
1. Men, 2. Material, 3. Machine, 4. Money, 5. Time, 6. Etc.
And you get output as
1. Good 2. Services, 3. Profit, 4. Brand, 5. Etc.
If Output < Input, you are at a loss and will have to windup up your business
If Output > Input, you are profitable, and your business is flourishing.
So (say) if you have created a black box in which, from one end, you input $1 million and get $10 million, then you have created a magic machine where investors will come flocking to you with their money.
Now, what makes the black box work are cogwheels, 1. Systems, 2. Processes, 3. Innovation, 4. Leadership, 5. Teams, 6. Quality 7. etc.
An industrial enterprise business model means a massive business, like a factory.