19 Posts Found

A practical guide for reimagining how your company creates, delivers, and captures value.

Content: Article | Authors: Matthew Duffey, Venky Jayaraman, Veronique Roos-Emonds | Source: strategy+business | Subjects: Business Model, Strategy

A business ecosystem is a dynamic group of largely independent economic players that create products or services that together constitute a coherent solution.

This definition implies that each ecosystem can be characterized by a specific value proposition (the desired solution) and by a clearly defined, albeit changing, group of actors with different roles (such as producer, supplier, orchestrator, complementor). The definition excludes some of the more … [ Read more ]

Content: Quotation | Authors: Martin Reeves, Maximilian Schüssler, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, General, Management, Organizational Behavior, Strategy

Marketplace businesses… They always seem great on paper, but it’s so insanely hard to solve the chicken or the egg problem. Every founder I meet who’s building a marketplace business basically says the same thing: “It’s so much harder than I thought to build a two-sided marketplace.“ But of course it can be done. There are plenty of examples of success. What I’ve noticed in the … [ Read more ]

Content: Article | Author: Josh Breinlinger | Source: A Crowded Space | Subjects: Business Model, Strategy

Business ecosystems are on the rise. In 2000, just three among the S&P top 100 global companies relied predominantly on ecosystem business models. In 2020 this number had grown to 22 companies, which together accounted for 40% of total market capitalization.

It is no wonder that many leaders of established companies are afraid of missing out on this trend and feel compelled to come up with … [ Read more ]

Content: Article | Authors: Balázs Zoletnik, Martin Reeves, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

It is widely acknowledged that business ecosystems offer great potential. Compared to more traditionally organized businesses, such as vertically integrated companies or hierarchical supply chains, business ecosystems are praised for their ability to foster innovation, scale quickly, and adapt to changing environments.

However, many companies that try to build their own ecosystems struggle to realize this potential. Our research has shown that less than 15% of … [ Read more ]

Content: Article | Authors: Martin Reeves, Niklas Knust, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

If designing a traditional business model is like planning and building a house, designing an ecosystem is more like developing a whole residential district: more complex, more players to coordinate, more layers of interaction and unintended emergent outcomes.

What makes ecosystem design distinctive is that it requires a true system perspective. It is not sufficient to design the value creation and delivery model; the design must … [ Read more ]

Content: Article | Authors: Martin Reeves, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

Putting a new strategy into effect is always difficult. Andrew Campbell and Mikel Gutierrez provide a practical solution to designing the necessary changes: the Operating Model Canvas. They describe how they applied it to the merger between Siemens and Gamesa, demonstrating how this framework, along with its supporting tools, can help leaders to design changes in their organization and operations.

Content: Article | Authors: Andrew Campbell, Mikel Gutierrez | Source: Management and Business Review (MBR) | Subjects: Business Model, Business Plans, Business Rules, Management, Strategy | Companies: Gamesa, Siemens

Trust, we instinctively realize, is a precious quality that binds relationships, and nowhere more so than in business ecosystems. It’s foundational, but also fragile because all the participants in an ecosystem must learn to work with, and rely on, each other, knowing that no external force compels them to do so. Mutual trust, as much as mutual interest, binds business ecosystems.

Yet few business leaders focus … [ Read more ]

Content: Article | Authors: François Candelon, Marcos Aguiar, Niklas Knust, Santino Lacanna, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

We have argued that corporations should Optimize for Both Social and Business Value, using their core businesses to deliver the financial returns expected by their owners and, in tandem, to help society meet its most significant challenges. To do so, we suggest that leaders reimagine corporate strategy by creating new modes of differentiation, embedding societal value into products and services, reimagining business models for sustainability, … [ Read more ]

Content: Article | Authors: David Young, Martin Reeves | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Social Responsibility (ESG), Strategy

BCG identifies six dimensions of environmental and societal impact, all with implications for employees and for external stakeholders, including investors, customers, suppliers, and society.

Content: Article | Authors: David Young, Marine Gerard | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Social Responsibility (ESG)

How can companies assess which business model changes will enable the company to become genuinely more resilient and sustainable over time? We believe our insights from researching Sustainable Business Model Innovation (SBM-I) can help answer that question. Crossing all industries and geographies, our research analyzed more than 100 business models through which companies delivered both business value and environmental and societal benefits. We tested each … [ Read more ]

Content: Article | Authors: David Young, Marine Gerard | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Social Responsibility (ESG)

In our research, we have studied more than 100 cases of companies that are practicing what we call “Sustainable Business Model Innovation” (SBM-I). We have found that the most advanced of these companies, the “front-runners,” combine environmental, societal, and financial priorities to re-imagine their core business models and even shift the boundaries of competition. The core practice for SBM-I is an iterative 4-step innovation cycle. … [ Read more ]

Content: Article | Authors: David Young, Marine Gerard | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

A beginners’ guide to high-value business models.

Content: Article | Authors: Andrew Shipilov, Francesco Burelli | Source: INSEAD Knowledge | Subject: Business Model

In The Ends Game, professors Marco Bertini and Oded Koenigsberg explain how companies can help their customers meet goals by rewriting the rules of commerce.

Content: Article | Author: David Lancefield | Source: strategy+business | Subjects: Business Model, Marketing / Sales, Strategy

Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.

Yet what IS a network effect? How do we untangle the nuances of … [ Read more ]

Content: Article | Author: Anu Hariharan | Source: Andreessen Horowitz | Subjects: Business Model, Strategy

The guiding principle of business value creation is a refreshingly simple construct: companies that grow and earn a return on capital that exceeds their cost of capital create value.

Content: Quotation | Authors: David Wessels, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subjects: Business Model, Business Rules, Management, Strategy

Companies that link complementary partners, like dating sites or online auctions, can dominate for years or be swept away in an instant.

Content: Article | Author: Dylan Minor | Source: strategy+business | Subject: Business Model

Software is becoming critical for almost every company’s performance. Executives should ask what they can learn from business models employed by software providers themselves—and consider the implications for their IT function.

Content: Article | Authors: Hugo Sarrazin, Johnson Sikes | Source: McKinsey Quarterly | Subjects: Business Model, Strategy

The term “business model” often describes the profit formula used by the company to generate its income. However, we have seen fit to increase the scope of the term business model beyond profit model to include how the company delivers value to the customer and, subsequently, how the company organizes resources and processes to support both its profit model and customer value propositions. External interactions … [ Read more ]

Content: Quotation | Authors: Clayton M. Christensen, Mark Johnson | Source: Innosight | Subject: Business Model