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Thursday, 14 November 2019

How to balance internal and external dimension in business model?


A key contest that emerges in business model is the one occurring between internal and external dimension. As a road map business model must not only connect strategy with tactics but also the needs of strategy in terms of internal resources and external customers. If there is no synthesis between these two the business model could fail in the market place. Here are some pointers:

Peter Layton of Griffith University who authored the bestselling book “Grand Strategy” urges that power within internal dimension must be developed so as to support the needs of external dimension. In the case of business model the power within involves people, money and key materials. Out if which people matter most due to the fact they are the vital interface between firm and its customers out there. If people are not trained and developed to cater to the needs of customers then there is high degree of imbalance

Peter Layton also mentions two key aspects that merit attention: one is the time factor and the other is managing resources. Time factor is critical aspect in developing key resources to be available at the right time and right place. In the case of customer relations, the skills, willingness and availability of the staff to manage relationship with individual as well as group of customers is too vital to be ignored. As an additional input the staff must also be trained to differentiate their pattern of conduct with multiple customer segments that are catered to by the firm.

Management factor is also equally important. Motivated managers play dual roles: they manage on the one hand and lead the staff in delivering customer service to near perfection on the other. They put their shoulders to the wheel rather than having hands-off approach or just merely giving plethora of orders. When management and staff are in sync, synthesising the needs of customers is easily facilitated.

In that event building blocks of business model fit well because key resources from one side balance three other elements on the opposite: customer segments, customer relationship and channels.

 
Cheers!

 
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677


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