Innovation Sustainable Business Development-Myassignmenthelp.Com

Question: Discuss About The Innovation Sustainable Business Development? Answer: Introduction Business model can be defined as the blueprint for business operation, which incorporates set of interrelated activities for gaining competitive advantage in the market (Bohnsack et al., 2014). The study will explain the business model as per the book The Business Model: Recent Developments and Future Research written byZott, Amit and Massa. Moreover, the study will describe three business notions in this book like e-business archetype, business model as activity system and cost/revenue architecture. The study will also discuss the inevitability of change in business with an example of Coca Cola Amatil. Discussion Business model is the combination of structure, content and governance of transaction, which are designed for creating organizational value through effective exploitation of business opportunities. According to Zott and Amit, (2013), business model is actually the system of interdependent activities, which transcend an organization and its boundaries. It is the way through which an organization can generate revenue and make profit through effective business operation. On the other hand, DaSilva and Trkman, (2014) opined that business model is the heuristic logic, which connects the technical potential of a firm with its economic value. Business model also defines the plan for a success business, which identifies the sources of business revenue, products and services, intended customers and detailed financial requirements. Furthermore, Markides, (2013) opined that business model is the concise representation of interrelated set of business decision variables in the areas of business strategies, architecture and economies for gaining competitive advantage in the market. The model is consisted of four interlocking elements like customer value proposition, key resources, key processes and profit formula.Furthermore, business model is intended to capture and create value through utilization of value oriented activities, advanced technology and cost and revenue structure. While considering the book The Business Model: Recent Developments and Future Research written byZott, Amit and Massa, it has been seen that there are three types of business notions, which are extremely important for enhancing business value. The three distinct business notions are e-business model archetypes, business model as activity system and business model as cost/revenue structure. Recent development in communication and information technology has increased the business value in the market. Schneider and Spieth, (2013) pointed out that swift expansion and emergence of technology has rapidly declined the computational and communication cost of the businesses. The creation of transactional architecture and unconventional exchange of mechanism has developed new ways of delivering high business value to the customers. According to Zott et al., (2011)e-business model archetype ensures profitable businesses for the organizations through dealing with the business partners and the customers over the internet. The blessings of e-business model architecture have enhanced the advertisement effectiveness and product delivery system. Furthermore, Amit and Zott, (2015) opined that e-shop, e-communication and e-commerce has allowed the business organizations in direct interaction with the customers. Moreover, such electronic mediums facilitates in direct product delivery to t he customers and receiving direct feedback from the customers. In this way, it has ultimately enhanced the values of the business through direct interaction with business customers. Moreover, such digital contents have also enhanced the business potentiality towards reaching wide customer groups through proper strategic marketing. Business model as activity systemdenotes creation and capture of business values through business activities. As per Zott et al., (2011), the activity based business model denotes the set of capabilities, which is configured for enabling organizational value creation consistent with social or economic strategic objectives. On the other hand, Carayannis et al., (2015) stated that activity business model generates value creation mechanism, which can go beyond value creation. Organizational value is created through innovation, development of strategic networks among the organizations, discovery of competencies and arrangement of value chain. Furthermore, DaSilva and Trkman, (2014) opined that activity based business model is highly associated with creation of unique value to the customers for gaining competitive edge over the rivals. Moreover, the unique value and offerings provided by an organization distinguish it from their rivals in the market. Business model as cost/revenue architectureaddress the spheres ofinnovation and technology in business. According to Zott et al., (2011), technology and innovation dimensions have the capability to automate the business processes and products towards fostering modernization in an organization. A significant part of this business model is to gain business value from exposing the potential value embedded in the technology with the initial technological stage and converting them into market outcome. On the other hand, Casadesus?Masanell and Zhu, (2013) opined that organizations can also foster innovative ideas through the utilization of external sources of ideas. In order to compete with competitive business environment, organizations need to upgrade and conceptualize their business model for modifying and aligning their business flow with changing market condition. In such high competitive business environment, organizations are more likely to face both static and dynamic business problems.Static problems always likely to arise in the business areas like cost structure, organizational structure and organizational resources. However, such business problems can effectively be managed through the application of various business notions. Business model based on cost/revenue structurefacilitates in quantifying the revenue sources of the organization (Bohnsack et al., 2014). Therefore, this model helps in making proper decisions regarding make and buy choice for organizational resources. On the other hand, e-Business model helps in creating innovative business process through advanced technology. Figure 1: Business Model Framework (Source: Markides, 2013) While considering the example of Dynamic business problems, these are always associated with the problems of changing customer needs, government regulations, demand and supply of products and others. However, such business problems can be properly mitigated through valued based business model and e-Business model. Such business model allows the organizations in direct interaction with the customers for understanding changing customer needs(Markides, 2013). Business Context assesses the surrounding and associated environment of an organization. It actually explores the opportunities and threats associated with an organization in its surrounding environment. Moreover, business context can incorporate the organization itself, its process, its stakeholders and others. However, in contemporary business environment, organizations are more likely to face frequent changes in its surrounding environment. Therefore, organization must need to keep pace with the frequent business context towards beating the market competition through creating competitive edge. As per Zott and Amit, (2013), in contemporary business environment, technology is rapidly changing. In such technologically changing environment, usage of backdated technology can prevent the competitive edge of an organization. Therefore, adoption of advanced technology in the business model is high necessary for gaining competitive advantage. On the other hand, Amit and Zott, (2015) opined that organizations must also change their business model with the changing needs of the customers for gaining competitive advantage. Moreover, change is inevitable for the success of the businesses. While considering the example of Coca Cola Amatil, it has been found that the organization has successfully reconfigured its business model for gaining high level of business value. The traditional and backdated technology of the organization was creating huge problems in dealing with international business operations. The organization was facing huge problems in maintaining large data of their international business operations. Therefore, the organization has recently incorporated cloud computing system in their business model. Such business model has improved the business process of the organization through technological advancement. Figure 2: Hybrid Model of CCA (Source: Carayannis et al., 2015) The organization has now become able to store huge information regarding its international business operation. Furthermore, they are now capable of quickly accessing the business information for operational efficiency and better customer experience(LeMay, 2014). Such system is also highly cost efficient and can back up and recover important business information. Moreover, the organization has used e-business model archetype and value based activity system for enhancing business value. The managers of the organization had to assess and quantify the importance of various stakeholders and need for talent for proper implementation of the system. Conclusion While concluding the study, it can be said that business model is the set of interrelated and interdependent activities, which can explore different business opportunities. As per the book of Zott, Amit and Massa, there are mainly three types of business models namely e-Business archetype, business model as activity system and business model as cost revenue structure. Such business models are extremely important for solving the static and dynamic business problems and gaining competitive advantage. For instance, Coca Cola Amatil has used both e-Business model archetype and business model as activity system for gaining competitive advantage. Reference Amit, R., Zott, C. (2015). Crafting business architecture: The antecedents of business model design.Strategic Entrepreneurship Journal,9(4), 331-350. Bohnsack, R., Pinkse, J., Kolk, A. (2014). 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