There are enough good business models in the market
place. However, what we need is a better one; the one that stands out amongst
many a competitors. To design a better
business model we need to have a set of criteria. Amongst these four are must
meet criterias:
1. Robust: To
start with, a business model must be built on a fitting architecture that is
not only strong but exhibits vibrancy in internal health. No doubt it must be
powerfully built. Equally important is that a business model must be scalable
in terms of expected growth of business and flexible in terms of meeting any
eventuality. Acid test of the better ones rest on the fact how the model works
under trying conditions.
2. Coherent: The second criterion of coherence has two dimensions: one deals
with internal consistency where components of a business model are consistent
in purpose and in practice; other dimension is to do with being logical in
arriving at a decision or conclusion. Even a consistent model could fail if it
does not lead to its proper conclusions. Put it the other way, a business model
must provide direction leading to a desired solution in a consistent manner
3. Complete: “Half learning is dangerous thing”, said Ben Johnson. Equally, an
incomplete business model is deemed counterproductive. A better business model must have enlarged
scope covering all the elements to the extent that it tells the story in full.
Completeness requires both breadth and width. One cannot do without the other
4. Substantive: Being substantive is to furnish details at the level
required so that components of a business model demonstrate their importance,
usefulness on the back of reality. These elements are to be shown in model
architecture as possessing the capacity to work independently and
inter-dependently.
Google is perfect example of a business model where
all these criterias are in-built!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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