Whose job is it, designing new business model?

Henry Chesbrough once lamented that business model is nobody’s job. That is changing now. As many companies are learning to cope up with designing and innovating business models to keep up with competition the job got finally  entrusted upon all C-level officers.

1.      Chairman/ president of board of directors:   Board is responsible for drafting strategy, business concept, policy, vision & mission, goals & objectives in consultation with the senior management comprising all C-level officers

2.        Chief executive officer:  As team leader the CEO is must define value proposition in practical terms involving segmented markets, competitive strategy and identification of chief players in the value network comprising production and sale of a line of products. To do that, he ropes-in his colleagues who are chiefs of operations, marketing, finance and information who by nature and training should display the same level of enthusiasm as he does

3.        Chief operations officer: The COO is tasked to identify and evaluate the supply chain along with core competencies within and the partner network outside. This helps him to design the three components in the value creation segment namely key activities, key resources and key partners

4.        Chief marketing officer: Value delivery is his key forte of the CMO. Under him lies portfolio of customer segments, distribution and delivery channels and customer relationship.  He is the guy who is always in action from the time designing business model is flagged on. In fact he is the one who is most concerned with the customer and he is the one who is the bread winner

5.        Chief financial officer:     Inevitably the CFO is saddled with tending the house of finance, a most difficult task to do in any business.  In every business model the CFO  has unenviable tasks of assessing the cost structure in  creating value in its perspective and balance with revenue stream generated from income mechanism so that company’s earnings per share spikes up. Never the less, he is doing the thankless job in the entire company in charting strategy and implementing it too

6.        Chief information officer:          CIO is a different kettle of fish. He is given responsibility to identify and draw the activities indicated in a business model as process flow charts. Using systems theory, computer logic along with communication and information network, he prepares and implements process design at the operational level. Activities and decisions taken at various points in the conduct of business generally conform to the process design introduced and implemented by the CIO.

Cheers!

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist