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Speaker Notes Of Innovation And Sustainable Business

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Question:

Discuss about the Speaker Notes of Innovation and Sustainable Business.
 
 

Answer:

Introduction:

Business sustainability refers the model of business and the decision of manager regarding financial, social and environmental concern. Sustainable companies focuses on financial value of company, take care of their actions and their impacts on market, put efforts to make positive change in the organization and try to feel comfortable to their employees. They make plan for long terms and forge for effective relationship with employees. Innovating for sustainability defines the required change in the organization intentionally so that organization can grow further efficiently while making changes in the organization environmental and social value is being considered. Business model is a process which enhances the revenues of the company. It is a kind of representation which reflects the details of financing. It is being taken in use by all size of companies because it just the way to show the current situation and provide information regarding possible changes.

Business model as a system is very effective. It contains two elements in it that is design theme and design elements. Both are performing their role to improve the business. Design theme refers the complementary or efficiencies while in the context of design elements, the mode of treating the business, structure and content are involved. It gives permission to the manager to make changes in business model as per the requirements of the business.

Static business model is a time invariant model. It gives preference to the need of the customers by using resources of firm appropriately. It is the model which focuses on monetary and non-monetary both terms while making strategy. The system of calculation of static view is equilibrium.

It is the approach which allows business to make decision quickly regarding changing in business model. It is very understandable approach. Various business models contains in it. The major focus of dynamic view of business model is to earn profit for the short term basis. The strength of dynamic view of business model is highly adaptable which defines that participants make rapid changes even in the condition of low latency.

The building block of business model contains 9 elements. Customers are being targeted by this model and divided as per their requirements. Distribution channel is the way of communication. Value proposition refers the complete perspective of services and products of the firm. Customer relationship refers the connection of various segments. Key activities contain managing the customers, maintenance, collection and selling. Key resources defines the trust and repudiation, talent of entrepreneurial and logistic and management skill.  Partner network refers the agreement with other companies. Cost structure is the monetary term of business and it includes upfront investment, labor cost and salary of the franchise. The revenue stream reflects the more revenue by using the various revenue flows.

It is important for the business to reconfigure the value chain on time to time. Changes should be made on the need of the customers. Market boundaries have been blurred if changes in value chain does not make as per requirement. The diagram of value network is different for every industry.

Value creation through business model makes the business perfect. It focuses on the customer relationship because customers are the centre of thinking for the business. Value creation is categorized into two terms that is specific and fundamental. Value of customers should be done in an appropriate manner. It is very helpful for a specific model. It is important for the business to start the business by considering the customer’s empathy. Along with value creation, value appropriation is important because it is the medium to bring the advantage in the company.

 

Conclusion:

The article of Itami and Nishino refers the categorization of business model that is profit model and business system. Profit model consider as the assumption of earning more profit in certain time. Business system targets the customer and takes care of their need by providing good services and products. It gives preference to the dynamic approach. To make sustainability in the business it encourages business to produce products at the level of inter-house as well and refers a well maintain business system. This article elaborates the business model in effeceint manner. Google and Toyota two main example based on this business model has been elaborated by this model which give proper understanding towards both kind of part profit model and business system. 

The process of innovation through business model is very challenging task. It is the form of transformational but it can be threaten for the firm if the use of innovation process ineffectively. The quality of innovation process is that generates new values and ideas for the customers. It finds the more opportunities for growth.

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