”The reason why it is difficult for existing firms to capitalize on disruptive innovations is that[the processes and business model] that make them good at the existing business actually make them bad at competing for the disruption.”
Clayton Christensen
Business models holds endless promises.
Entrepreneurs use new business models to bring innovations to the market. Venture capitalists know that a viable business model facilitates rapid growth. CEOs need business models at large firms to adapt to technological and socio-demographic change. Smart policymakers recognise that business models underlie long-term economic development, job growth and even effective provision of government services.
The good news is that a business model is a nearly universal construct. It can be applied, with varying degrees of specificity and effectiveness, to new ventures, family business, growing companies, multinational corporations, industries, governments and possibly even nations. Business models identify the key elements and structures of an organisation. Business model analysis reveals how an organisation can improve to meet market needs and create value, whether that value is measured in profit or less tangible human good.
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