What is the Good Business Model?(II)

  • Business model revolution

There are major changes in the business model, as well as micro-design. In fact, for the business model, there is no need to pursue too much change, and it is possible to generate huge benefits by only one point.

The big change in business model involves two issues of transaction structure: The transactional subject and transaction content.

Changing stakeholder, activity, and resource capabilities is part of a major change in business models.

  1. Stakeholders

For stakeholders, we can achieve changes in our business model by adding, reducing, split, aggregating, selecting or changing stakeholders. Among the stakeholders, there is another category called “key stakeholders”, those who can achieve strategic goals and make a qualitative leap in the business model. For this type of stakeholder, there is a need to focus on business model design.

  1. Activity links

The activities include the processing of cutting, recombination and fragmentation. In some industries, there are many channels and chains, which can be shortened by business model plus technology manufacturing. By removing some links from the information system, efficiency can be improved.

  1. Resource capacity

Resource capabilities can be designed through new business models, allowing companies to create greater value in their resource capabilities.

For many small businesses, they can actually stare at big companies, not for competition, but to understand what they are doing next, in order to ponder their business model. When a small business develops to a certain extent, the best way to grow is to dance with big companies. In this way, you can fully use the leveraged assets of large companies to develop themselves. When many small enterprises develop into large enterprises, they use the leveraged assets of large enterprises at key nodes to develop.

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