Much is written about the importance of business models. Business Schools teach whole courses on the topic and consultants urge clients to innovate by changing those business models. But current definitions are ambiguous and qualitative. More seriously, those business model frameworks make no attempt to quantify anything or show how and why the business actually performs as it does – they are descriptive “statues”, rather than true models.
But it is possible to develop working, quantified models that replicate how a real business (or a part of it) performs over time – linking investment to product development and capacity growth, marketing to customer growth, staffing to capability, and if required connecting all into an integrated whole, including the financials. This makes many important things possible … new ventures can be bench-tested before real money or people’s livelihoods are put at risk; market competition can be managed to the firm’s advantage; integrated business plans cutting across functional silos can be tested and shared by everyone; big challenges or initiatives can be rehearsed before they happen; and detailed, time-phased action-plans assembled and continually updated
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Business Model Canvas | Kim Warren | |
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| 141 views views | 3,625 followers |
| Education | Upload TimePublished on 8 Dec 2015 |
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