Innovation and Sustainable Development - myassignmenthelp.com

Question: Discuss about theInnovation and Sustainable Development forCost Structure. Answer: Business model is quite confusing topic and often confused with the business strategy. Druckers definition was basically accumulation of some assumptions on what a business will and will not achieve in course of time and how they will achieve is closely related to the definition proposed by Michael Porter for the business strategy. Business model is considered to be the structure of a business. It is the structural framework that defines the plan and the procedure of making money (Ovans, 2015). In other words, it is the revenue generating model that can include various components of business organization such as product and service promotion, selling and many more. Discussion will be carried forward with highlighting different definitions of business model proposed by different scholars. The next part of the essay will be focusing on the explanation of e-business archetype, business model as an activity and business model ass cost revenue architecture and an explanation is given on t he their use as analytical and problem solving tools. The idea of business context is clarified in the final part of the essay drawing an example to support it. The concept of business model can be identified by various fields of application that are promising in business. The purpose of a business model is to identify the significant components of a business and focus o the process of revenue generation using them. This includes identification of profit potential, estimation of cost structure, identification of target market, value proposition of the company, prepare the structure of the value chain and choosing proper technology and feature. These are the vital factors of a business model which ensures the success of a business organization. It also looks into the customers demand and works towards the satisfaction of the need (Wirtz et al., 2016; Mishra Zachary, 2014). Business models that are used in various fields can be explained by seven high level abstractions. They are summed up under e-business archetypes. These are categorized under primary and secondary archetypes. Product, Trade and service archetypes are included in the primary archetype, whereas, marketplace, brokerage, subscription and ecosystem are identified as secondary archetypes. Development of a tangible artifact that are produced and sold on one-time base is looked after the product archetype. When discussing about the online market, is usually refers to the plug-in software for major platforms or the content products. Trade is another primary archetype that focuses on the connection between sellers and buyers. The company can generate revenue when the product is sold for a greater price than buying. Service is the last puzzle of primary archetype which is responsible for providing intangible solutions for both client and customers in the areas where commoditized products are in sufficient. This field often comprised of maintenance, customization or integration of popular platform solution. It is used by the companies that are related to service providing (Fielt, 2013). The first secondary archetype is the marketplace that is a combination of trade and product. It facilitates in bringing the seller and buyer together. By products, it refers to either physical shopping mall or the online portal like Amazon. Either services or tangible products are available in the marketplace. Brokerage is the second one which is a combination of trade and services done by the company on behalf of the clients. It is the service sector such as advertising or similar that helps the trading companies in online traffic sourcing. Subscription is a popular mixture of products and services. It is basically the service providing companies which offer software or content as service. It solves the problem of one time bulk investment for a product. Last but not the least; ecosystem is a combination of all the three primary archetypes. Success in a single primary archetype opens up opportunity for the company to evolve in the second one. Example can be sighted for the product cr eators whose success in the particular field leads them to provide services to the customers. The most common example that can be sighted in the scenario is the software industries like Microsoft, who follows this ecosystem archetype (Plenter et al., 2017). Activity system on the other hand facilitates the organizations to concert with their stakeholders and the partners. According to Zott, Amit and Massa (2011), it helps the business to create their value. The empirical and theoretical research states that, two possible sets of parameters are needed to be considered by the activity system designers at all time that are the elements which explain the architecture of an activity system and the theme that narrates the sources of the activity systems value creation. The authors view this model as the helping hand in analyzing any businesss code of conduct and explain how the factors are connected product markets. This model has the capability to address the important issues that are faced by the business management, engage in insightful dialogue and creative design and to provide a conceptual toolbox in addressing the problems (Zott, Amit Massa, 2011; Schwarz, Terrenghi Legner, 2017). The last one is the Business revenue architecture that facilitates in revenue generation of a company. Revenue architecture is directly linked with the business model in the grounds of marketing and sales. It is used for managing the technology department of a business. Different business organizations use this to align their marketing and sales value chain and drive revenue performance. Multi-affiliated revenue model brings together different technology, strategy, design and media and use them to face current market challenges. Buyers are considered to be the most effective challenge as they are now accustomed with the web and expect unified experience across challenge (DaSilva Trkman, 2014). The Business Context comes into action when it requires identifying various problems in the organizational settings and suggests the way to achieve betterment of the business. It is interested in the areas of a business where development is required or the modification can do well for the business. It enables the researcher to identify different aspect other than problems that are organization chart, relationship map, current state, future state and many more. They use different diagrams for the process of identification (Saidani, Rolland Nurcan, 2015). It ultimately facilitates in change of the business. The example of the company that is drawn to support the notion of change is Amazon who recently faced a change in value chain. They recently modified their supply chain. It is a U.S based company that operates in sell and supply of tangible goods to the customers. There was a change in Amazons partnership with their air freighter. It was due to the gap in view point of the company and its air freighters. The views of their partners like Fedex, UPS varied in delivery rhythms, shipping rates and volumes from Amazon. Due the above mentioned reason, Amazon has now collaborated with Atlas Air. Three types of relationships can be identified that supplements their collaboration. Firstly, Amazon took the planes from Atlas as lease, which makes Atlas the supplier and Amazon the customer. Amazon could have purchased some twenty planes in order to fully own the air freighter department which would have facilitated to fully control the transaction. But as they dont have the knowledge in the fiel d, it would have been foolishness for the manager to take such risk. This was a challenge the manager had to go through. Secondly, both the companies are willing to enter the opponent partners company. Lastly, Amazon has a scope of invest in Atlas and establish itself as a part of logistics market. All these benefits Amazon on the ground of gaining control over the supplier service and better serve their prime customers in fulfillment process (amazon.in, 2017). This modification results into change the value chain of the company which now better serve their vision. As they now gained access in Atlas, they can increase the number of the air freighter, which is the key to increase Amazons speed to deliver products to the customers. Moreover, Amazon owns a large number of shares of Atlas which gained them access to the core committee of the company which in some sense means they have their own air freighters. This results into more delivery of products in a single flight which reduces the budget of the company. This modification brought change in business model as they just modified themselves from marketplace to the ecosystem archetype which is discussed earlier. A conclusion can be drawn over the topic and it can be stated that different business needs different business model for it to work properly. There are seven e-business archetypes that can supplement different e-business into action. A brief discussion has been given on the theories and its use in analyzing different models. Last part of the essay discusses about the change in Amazons value change. It is also related with the previously mention archetype models. Brief idea has been provided on the companys current value chain and its impact on the business model is also stated. References amazon.in. (2017). Atlas collaboration. Retrieved 22 August 2017, from https://www.amazon.in/Collisions-Collaboration-Organization-Learning-Experiment/dp/0199567921 DaSilva, C. M., Trkman, P. (2014). Business model: what it is and what it is not.Long range planning,47(6), 379-389. Fielt, E. (2013). Conceptualising business models: Definitions, frameworks and classifications.Journal of Business Models,1(1), 85. Mishra, C. S., Zachary, R. K. (2014). Business Model Theory. InThe Theory of Entrepreneurship(pp. 227-250). Palgrave Macmillan US. Ovans, A. (2015). What is a business model.Retrieved July,5, 2016. Plenter, F., Fielt, E., Hoffen, M., Chasin, F. Rosemann, M., (2017). Repainting the business model canvas for peer-to-peer sharing and collaborative consumption. Saidani, O., Rolland, C. Nurcan, S., (2015), January. Towards a generic context model for BPM. InSystem Sciences (HICSS), 2015 48th Hawaii International Conference on(pp. 4120-4129). IEEE. Schwarz, J., Terrenghi, N., Legner, C. (2017). Towards comparable business model concepts: resource description framework (RDF) schemas for semantic business model representations. InDesigning the Digital Transformation: DESRIST 2017 Research in Progress Proceedings of the 12th International Conference on Design Science Research in Information Systems and Technology. Karlsruhe, Germany. 30 May-1 Jun.. Karlsruher Institut fr Technologie (KIT). Wirtz, B.W., Pistoia, A., Ullrich, S. and Gttel, V., (2016). Business models: Origin, development and future research perspectives.Long Range Planning,49(1), pp.36-54. Zott, C., Amit, R. Massa, L., (2011). The business model: recent developments and future research.Journal of management,37(4), pp.1019-1042.