About Business Models and Technology
While technological advances provide opportunities to innovate and develop successful businesses, it is the managers’ business model choices that are critical to realise such potential.
Supported by a £1 million grant from the Engineering and Physical Sciences Research Council (EPSRC), and with matching funding from Cass Business School, the Mack Centre at Wharton Business School and other sources, Professor Charles Baden-Fuller, Centenary Professor of Cass Business School, City, University of London is leading an international team of experts to conduct research "Building Better Business Models"
The business model is the system that connects sensing customer needs, engaging with those needs, delivering satisfaction and monetising the value. It deals with both value creation and value capture. Business models are fundamentally linked with technological innovation generally and digital innovation in particular, yet the business model construct is essentially separable from technology. The business model system describes cause and effect relationships, and is both cognitive and real. It can be used to understand the economic dynamics of firms and industries, and it is also a 'device' that can assist managers and policy makers in thinking about their world. Challenging many widely held views about business models because it stresses the model dimension, is intellectually robust and is built on firm philosophical and practical foundations.
There are four ideal business models
Each business model engages with customers differently. Here please use material from Business Model Zoo as follows. If you need specific files, pictures, etc.please get in contact as we have admin access to the site.
- Product Model
The company develops a product or standardized service and sells it to customers. The value proposition is transactional: to provide a product or standardised service that customers will buy.
- Solutions Model
The company engages with a customer about a problem the customer faces, and provides an integrated solution. The value proposition is relational: to tailor solutions to each customer.
- Matchmaking Model
The company joins buyers and sellers in its online or physical marketplace. The value proposition is transactional: to facilitate exchange.
- Multi-Sided Model
The company provides different products or services to different customer groups. The value proposition is multi-sided: one customer group gets additional benefits from the other group’s transactions.