Four qualities that go with successful business model

You can generate any number of business models using the BM canvas. But in order to make a successful business model it must exhibit four qualities. Here are the four nuggets:

             

1. Simple & practical:   So simple it is, so better it can be practised.  It must be easy to understand and must be easy to implement too. Anyone can fantasize on business model. But a better business model designer comes out with one that easily fits into the system within a business and outside in the wide area of competition. It must do the right thing in right manner. Follow management Guru Peter F Drucker on his comment: “Efficiency is doing things right; effectiveness is doing the right thing”

2. Communicative:   Like every company statement, business model must have in-built feature to communicate with the outside world. It explains to the people out there how the business is going to practice its business. We need two characteristics to make a business model communicative: it must be impressive and at the same time it must be elegant. Google developed this one still others are groping in the dark

3. Innovative:        Nowadays every business feels the urge that either it must innovate or bring down the shutters over it. Innovation does not necessarily mean new idea or new product. It means lot of other things; new mode of doing business, new use of products, new markets for products and so on. The fundamental theme underlying innovation is how to keep completion at bay for the time being. At best, using innovation a business can roll out a business model that cannot be replicated in the short run by its competitors. And for that matter even in the long run its leadership position cannot be easily assailed

4. Positionable:     It is the capability of business model being positioned in a particular point, line and level of an industry matters heavily on the success of it.  It is indeed the final arbiter. On this count there are two aspects: it gives short-run survival and provides long-term safety. On the one hand your business model should be defensible against existing competitors. On the other hand your business model must be able to mount an attack against new competitors as and when they arrive in the horizon.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist