$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Business Model Design : Activity System Perspective

tag 0 Download7 Pages / 1,733 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


Discuss about the Business Model Design for Activity System Perspective.



All focal firms commit themselves towards the provision of a blueprint and a way that can enable them to satisfy their customers as well as maximizing profits entirely. With that in mind, there is need to conceptualize a business model. In simple words, it is defined by a substance, a combination of rules defining behavior and administration of a deal designed so as to create value through the proper use of a commercial enterprise opportunity (Zott &Amit, 2010). It is also a combination of different components which include the business system and a profit model. The system is designed for the production and delivery of goods and services from the enterprise while profit fashion is specifically geared towards the realization of the benefits from the sale of a product (Itami and Nishino, 2010). After identification of a business gap, the opportunity is taken advantage of, and a quality created to the involved parties as this is the primary goal of a business model. The figure below illustrates a simple version of the layout of the elements according to Itami and Nishino, 2010.

Business models as systems are conceptualized in building block terms. Nine components describe this namely; customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.  (Baden-Fuller & Mangematin, 2013). This is intuitively a simple method for portraying, envisaging, assessing and replacing the models. 

Conceptualization in a business model involves managers' technological and strategic identification of different activities which is quite a challenging task since the number of potential events is always significant. A three-phase research is conducted, the first one being the pre-understanding phase whose main objective is gathering any information concerning the primary and secondary data (Behrangrad, 2015). The second one is the model development phase which involves fine-tuning the collected data conceptualization in collaboration with participant firms, and finally, there is the interpretation phase during which the management approaches the final conclusions.

Business models as systems are of great importance and thus they play a significant role in solving both static and dynamic problems. The static view of a business model puts into account the understanding of the latter’s distinct taxonomies and typologies. The business model, in this case, helps in hierarchically and typically identifying the most suitable approach that will yield maximum profits as well as advocate for the prevention of future problems (Chesbrough, 2010).  Dynamic problems also known as the longitudinal problems of business models, arise as a result of poor capturing and lack of understanding of the impact of learning and the commands learning brings about business models. These templates as systems ensure that managers get a clear knowledge of the firm before actual conceptualization. It also helps in identification and determination of future underlying invisible assets for the company.

Bearing in mind that the primary goal in a focal enterprise artwork is to make use fully and actually exploit the current market gap by creation of monetary gain for the parties involved, as well as satisfying the customers' wants and needs, different firms sharing similar objectives and ambitions come together and work towards adequate provision of goods and services and ensuring full satisfaction of their customers thus creating a strong bond that will enable them to outdo their competitors (Teece, 2010). A firm usually has to determine the sharing of power and the division of labor with its trading partners. This also enables customers to learn more about the companies' technologies and the modes of delivery while the firms get a chance to learn the reactions of their clients to different goods and services.

Business models are mainly designed in such a way that they always prioritize technological advancements and innovation. They advocate for new business ideas to realize the maximum profits possible. Engagement with customers enables a firm to identify their needs and thus looks forward to innovative mechanisms that will match the demand and supply of goods and services. In other words, to fully satisfy their customers. Technological innovation is viewed as activities where the enterprise fashion focuses on identifying the users and the customers and indicating whether the latter pay for what they use or is it paid for by other clients (Teece, 2010). E.g. In the case of television, the users don't exactly pay for the services, but they are instead paid for by others such as the advertisers.


According to Zott & Amits (2010), a simple definition of this business artwork is given as portraying a matter, form, and administration of business activities made with the aim of creating a quality via thorough exhaustion of the available commercial enterprise opportunities. Each business choice approached by the management involves a fundamentally distinct business model due to the implication of different set of activities, the potential to perform them and the resources available. A business model is aimed at benefiting all the involved participants by ensuring total value creation. Zott and Amits (2010) noted that the primary goal of a focal firm enterprise model is to fully make use of the available commercial gaps and opportunities by the enhancement of quality for the involved parties. The business model encourages entrepreneurial managers to plan their future design, helps them in analyzing and enables them to improve their current models for them to be futuristic.

They gave an example of FriCSo, an upcoming engineering company which has applied a friction reduction technology thus achieving significantly in a technological breakthrough. There are always many options to weigh to make maximum profits and minimize the costs of production (Saebi & Foss, 2015). FriCSo came up with this idea after discovering that there was clear and mass applicability to the products due to serious industrial applications which involved moving parts such as manufacturing machines and ship building. After choosing the target industry, they came up with the best kind of company that could fully commercialize the intellectual properties. Each choice an entrepreneur makes will always have its connections for the businesses’ potential of performance (Neubauer & Lank, 2016).  A business model emphasizes on the best model that a firm should adopt for it to match itself with the existing forms of original equipment manufacturers (OEMs).

 According to Itami and Nishino (2010), business models are made of two elements which include a profit model and a business system. Itami and Nishino, (2010) argues that the profit oriented model is highly recognized and profiled because companies operate with a primary goal of maximizing wealth and profits.  They further postulated that these two business model elements cannot work if applied at the same time in one company and this means that businesses should adopt the most viable model as per the market needs and corporate company goals. The internal and external operations of a firm are determined by the market systems and the profit model of the enterprise, and therefore managers should be sensitive in choosing either in the two. Application of one model assists in the easy management of company objectives as well as their achievements.

Kodama's (2009) article ‘Boundaries Innovation and Knowledge Integration in the Japanese Firm' has inspired and helped me understand business models. With a very simple example, the article explains how and why Japanese companies applied new leadership models in high-tech fields. Many countries such as South Korea learned the development and better techniques of production from the Japanese. In simple terms, one only needs to come up with the different business idea and implement the most suitable business model to make their business dreams a reality. To my understanding, a business model is the determinant factor in the success of every business.

Zott and Amit (2010) article ‘Business Model Design: with the view of a business model in an Activity System Perspective’ has effectively contributed to my understanding of a business model. With the simple view of an enterprise artwork or fashion (business model) as portraying the substance, combination of rules defining a behavior, and administration of a deal designed so as to create value through the proper use of the available opportunities, they have enabled me to understand that an enterprise model is a combination of occurrences which a business set up performs, how and when it delivers them (Crane & Matten, 2016). It is also straightforward and precise that a business model may be understood as the nature of goods and services a firm provides to its customers, and the activities performed to deliver such services.

I other words, it is clearly evident that a business enterprise system is a vital instrument in a firm which is viewed as a physical object that manifests how a company undertakes its commercial activities and how its stakeholders timely and adequately acquire the services. A good business model represents physically the possibilities of more and future theoretical development which is separate from non-essential matters. What makes different firms not to be equal in performance is only that they think differently and have different perceptions towards the business activities that determine the vertical value chain.



Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan  Management Review, 53(3), 41.

Baden-Fuller, C., & Mangematin, V. (2013). Business models: A challenging agenda. Strategic Organization, 11(4), 418-427.

Behrangrad, M. (2015). A review of demand side management business models in the electricity market. Renewable and Sustainable Energy Reviews, 47, 270-283.

Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range  planning, 43(2), 354-363.

Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and  sustainability in the age of globalization. Oxford University Press.

Itami, H. (2010). Killing Two Birds with One Stone: Profit for Now and Learning for the Future., page 364-369.

Mitsuru, Kodama, (2009). Boundaries Innovation and Knowledge Integration in the Japanese Firm

Neubauer, F., & Lank, A. G. (2016). The family business: Its governance for sustainability.  Springer.

Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal, 33(3), 201-213.

Teece, D. J. (2010). Business models, business strategy, and innovation. Long range planning, 43(2), 172-194.

Zott, C., Amit, R. (2010). Business Model Design: An Activity System Perspective. Journal of Management,  216-226

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Business Model Design : Activity System Perspective. Retrieved from

"Business Model Design : Activity System Perspective." My Assignment Help, 2018,

My Assignment Help (2018) Business Model Design : Activity System Perspective [Online]. Available from:
[Accessed 14 July 2020].

My Assignment Help. 'Business Model Design : Activity System Perspective' (My Assignment Help, 2018) <> accessed 14 July 2020.

My Assignment Help. Business Model Design : Activity System Perspective [Internet]. My Assignment Help. 2018 [cited 14 July 2020]. Available from:

At, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.

Latest Management Samples

SWN018 Theories And Frameworks For Social Work Practice

Download : 0 | Pages : 11

Answer: Introduction There are numbers of practices and approaches to secure the human rights that includes various community practice, community intervention, community organizing, and community organisation. These practices can be practiced interchangeably with proper inclusion of the community organizing. The social work is a huge field where, people take care about every individual living and non-living entity within the community. To put...

Read More arrow Tags: Australia Theories and Frameworks for Social work practice. Queensland University of Technology 

ORG20003 Organisational Behaviour 3

Download : 0 | Pages : 11

Answer: Introduction Work-life balance is the most important part of an individual’s life as it helps an individual to align is personal and professional goals in the effective manner.  The work-life balance if manage effectively could led to high level of satisfaction among the individuals. In today’s world of busy life, it has become highly difficult to manage the work and home in the best manner (Anacleto, 2020). Huge...

Read More arrow Tags: Australia Collingwood 9 organisational behaviour Swinburne University of Technology 

MGMT20132 Innovation And Sustainable Business Development 3

Download : 0 | Pages : 9

Answer: Introduction The report is focused on further evaluating and refining the novel value proposition which was created in the previous assessment. Previously some innovative value propositions were suggested in view of the issues that are related to the operations of Qantas Airways. It was found previously that the two main challenges that are faced by the organization are big data management due to the constant changes in technology and...

Read More arrow Tags: Australia 9 innovation and sustainable business development Central Queensland University 

MMM343 Business Ethics 4

Download : 0 | Pages : 14

Answer: Introduction  Business ethics refers to study of business practices and policies in relation to controversial subjects such as insider trading, corporate governance, discrimination, bribery, fiduciary responsibilities and corporate social responsibility (, 2020). Businesses often use business ethics as guidelines for obtaining the approval of the public. In other words, business ethics includes- professional or a...

Read More arrow Tags: Australia north fitzroy 9 Business Ethics Deakin university 

DSRS4101 Arts Sports And Leisure Amongst Diverse Populations

Download : 0 | Pages : 16
  • Course Code: DSRS4101
  • University: Flinders University
  • Country: Australia

Answer: Introduction  The human crisis brought about by the Covid 19 pandemic, notably the fact that the virus is highly infectious and is capable of taking the life of the person ridden with it, has compelled people around the world to remain confined within their homes (Beaunoyer et al., 2020). Social isolation has been enforced by governments around the world to keep their people safe from being infected with Covid 19 as a consequence...

Read More arrow Tags: Australia Arts  Sports and Leisure amongst Diverse Populations Federation University 

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

154 Order Completed

97% Response Time

Harold Alderete

PhD in Economics

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2830 Order Completed

97% Response Time

Leroy Bicknell

MBA in Marketing

London, United Kingdom

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

great work. WOW. nicely done. good reference. great approach. one of the best assignment


User Id: 424798 - 13 Jul 2020


student rating student rating student rating student rating student rating

I am very pleased with the turnout of my assignment! My stress level dropped dramatically with MAH\'s assistance!


User Id: 383727 - 13 Jul 2020


student rating student rating student rating student rating student rating

At first, I started to lose faith in MYASSIGNMENThelp, then I was assigned a tutor that was able to take the suggested changes and went over and above the call of duty to complete my assignment. I am so thankful for this tutor. Can I work with you ag...


User Id: 450083 - 13 Jul 2020


student rating student rating student rating student rating student rating

I have long awaited to give a 5-star rating and this EXPERT/tutor was able to review the track changes I requested and made those changes and even went over and above the call of duty to make sure my work was completed and done correctly. Thanks


User Id: 450083 - 13 Jul 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?