Post by account_disabled on Dec 25, 2023 23:25:17 GMT -8
Can grow and intensify over time, creating another fundamental fact that is critical for leaders: Business models are inherently not will change, and they will become less flexible and more resistant to change over time. Leaders of the world’s best businesses should pay special attention, because the better your business model performs at its assigned tasks, the more interdependent it becomes and the less capable it is of change. The strengthening of these interdependencies is not intentional on the part of managers; Rather, it arises from the emergence of processes that emerge as a natural, collective response to recurring activities. The longer a business unit exists, the more times it encounters similar problems and the more ingrained its methods for solving them become.
We often refer to these ingrained approaches as the “culture” of an organization. 6 In fact, this pattern is so consistent and important that we begin to think of the development of a business model across time as a journey whose progress and route are predictable—despite the time it Job Function Email List takes for the business model to follow this journey Will vary by industry and situation. (See “Three Stages of the Business Model Journey.”) As shown, business models, which in mature companies are often embodied in business units, 7 undergo a one-way journey from the creation of a new business unit and its business model , then move to sustaining and growing business units, and ultimately to extracting efficiencies. Each stage of the journey supports a specific type of innovation.
Builds a specific set of interdependencies into the model, and responds to a specific set of performance indicators. This is the arc of almost any business model’s journey—if it’s lucky enough to make it through the journey successfully. Unsuccessful business units falter, are absorbed, or shut down before their journey is over. Now, let’s explore each of these three stages and how the business model evolves through them. Three Stages of the Business Model Journey In mature companies, the business model is often embodied in business units, and the journey it takes begins with the creation of a new business unit and its business model.
We often refer to these ingrained approaches as the “culture” of an organization. 6 In fact, this pattern is so consistent and important that we begin to think of the development of a business model across time as a journey whose progress and route are predictable—despite the time it Job Function Email List takes for the business model to follow this journey Will vary by industry and situation. (See “Three Stages of the Business Model Journey.”) As shown, business models, which in mature companies are often embodied in business units, 7 undergo a one-way journey from the creation of a new business unit and its business model , then move to sustaining and growing business units, and ultimately to extracting efficiencies. Each stage of the journey supports a specific type of innovation.
Builds a specific set of interdependencies into the model, and responds to a specific set of performance indicators. This is the arc of almost any business model’s journey—if it’s lucky enough to make it through the journey successfully. Unsuccessful business units falter, are absorbed, or shut down before their journey is over. Now, let’s explore each of these three stages and how the business model evolves through them. Three Stages of the Business Model Journey In mature companies, the business model is often embodied in business units, and the journey it takes begins with the creation of a new business unit and its business model.