Tuesday, September 21, 2021


As a business leader, when you begin to develop a business model, you have to be very clear about your organizational strength and how to explore different paths and take the alternative value creation approach.

The very goal of developing a business is to create customers by solving their problems accordingly. A strategy is an architecture for change. Business Model is a model of how the business ‘intends’ to create and deliver customer value. Central to a business model is the value proposition which describes the business value being offered .At a conceptual level, a business model includes all aspects of a company’s approach to developing a profitable offering and delivering it to its target customers. 

In a large, well-established organization, architecture perspective provides a “big picture” guidance on reinventing business models as it clarifies what the whole business landscape is, including various aspects of business strategy, overall governance, information management system effectiveness, capital investment planning and control etc.

A motivational model (why): A business model is a simulation of different strategy scenarios. To design a new business model or reinvent an existing business model, an architecture-based motivational model provides a holistic view and management experiment for initiating continuous dialogue to motivate teamwork, clarify strategy - why do customers want to do business with you, what’re are the problems, visualize the change you would like to make, and share a qualitative & quantitative modeling with stakeholders to get sponsorship and support. Business executives who can speak architectural dialect are able to facilitate the digital dialogues between organizational decision-makers and thereby assist in continuously designing and redesigning business in pursuit of new and more viable strategies and experiment new business models. The reach of the information savvy business executives offers a nearly unprecedented opportunity to take the lead in business model innovation, or other business transformation efforts in an organization.

The pace of changes in the business ecosystem would force more business executives into transformation-oriented roles. Many existing business models are vulnerable due to rapid change and continuous disruptions; the untested new business models have risks embedded in it. It requires real vision, a sense of mission, an ability to foster a collaborative clarity of focus with clients. Influential business executives have to design their effective motivational model, carry on architecture facilitated conversations in their discipline and have discussions with their peers by enhancing cross-functional business coordination, developing knowledge and expertise, enforcing business responsibility and employee accountability.

An organizational design structure model (who): Organizations exist to enable one or more business models to function. Organizational structure design has an important role in reinventing business models because people need to be organized or realigned to fit their role in delivering better solutions to customers. Forward-looking companies all strive to build a people-centric organization for reaching the state of flow and harmony. In many businesses today, new technologies bring unprecedented convenience to learn and work flexibly, the physical organizational structure, relationships, and virtual platforms and connections wrap around each other to ensure clear responsibility and seamless alignment.

To accelerate the cycle of business model development, ideally, highly responsive digital organizations are able to reconfigure the organizational structure and change their own behaviors for their adaptation to environmental changes and ecosystem dynamics smoothly. Thus, organizational design should be part of the strategy management because companies need to keep improving their adaptability and innovativeness. An architecture is also a great tool for encompassing business changes strategically or structurally. Enforcing mutual respects between organizational design and multifaceted business management can lead to effective business model innovation and successful business transformation.

A capability/process model (how, when, where, etc): In a business environment that is driven by change, starting the business model based on the mega-trends or technology vision is to be able to build the core competencies early enough to catch the emerging digital wave and keep the business ahead of the fierce competitions. Everything is connected here: Process underpin capability, capability can be integrated into core competencies. The organizational structure carries inherent business capabilities as to what can be achieved within its frame to enable a clearly defined business model reinvention. A modeling may consider the process dimension itself, but also an investment portfolio with all those mixed components such as information, technology, process, people, culture, others. An architecture is an effective tool to help the management see the trees and forests: clarify how, when, where in a capability modeling; and understand the interdependence of varying business success factors holistically.

The value of the capability model/map is to clarify, simplify, qualify or quantify, visualfy, once it's built, it is as a tool to understand the end-to-end enterprise comprehensively. When you intend to make a change to one of those capabilities or build a new product, or execute strategy, then your model/map assists with a high-level impact assessment and delivery approach. The architecture is used as a collaboration instrument to 'type' business processes to be discussed as a whole; to integrate existing capabilities to dynamic new capabilities or optimize duplicated capabilities; to facilitate brainstorming of new business models continually, etc. This kind of capability model has been shown to offer insight to senior management in developing focus on what they truly do well. This has helped management to refocus on what is truly a core competency. It can also offer the opportunity for senior management to determine whether they are supporting the business model innovation.

Tuning business models is all about foreseeing and applying the emerging trends, that’s where you win the competitive advantage. An architectural view is insightful and extensive; a strategic perspective is long term driven and keeps the end in mind; a compelling vision builds a confidence to move forward. As a business leader, when you begin to develop a business model, you have to be very clear about your organizational strength and how to explore different paths and take the alternative value creation approach.



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