Solidity of economic model, community

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For the business model Course, focus.. This is the first and most important condition of its robustness.The Customer value proposition (Promise) was raised as the most appropriate way to define this focus. Utilities are a process of value creation. By creating this utility for your customers, your activity will be able to get the maximum value (…) depending on its revenue model.

This method of determining focus is at the economic and complete stage, with an increasing focus on functionality. Services dominate the economy. Activities can be deployed without significant support. The usage chain replaces only the transaction and properties of the product. This can increase the variety of proposals, from sophisticated features (low cost type) to intangible evaluation of social networks. More than ever, you need to position your model in this palette of possibilities. (…)

The new business model requires inference with variable geometry. Every time, it’s a matter of finding the right combination (the right combination) between the levers of action. Smaller, more multi-unit organizations are a result of what is now appearing in many enterprises. (…) We need to pay more attention to new sources of creativity, such as how to monetize. Subscription-based and / or pay-as-you-go models are becoming more and more common. They enable better revenue resilience, but can significantly change the economic equations of cost engineering and cash management. The value chain needs to increasingly coordinate the search for volume effects and the need for agility. These themes are at the heart of new and more diverse structures. These actively promote entrepreneurship.

Leader role

The limitation of system approach and modeling is to forget the important role of actors. Business models cannot be reduced to mechanical logic. It also, and above all, Product of belief, Situations, encounters and situations with actors. Leader and key player styles are part of the business model.Can decide Three important roles of leader : Become a business model architect, position yourself as a guarantor of the link between global view and local action, and drive performance and agility.

Being a business model architect means designing a moving economic structure. It is the construction of behavioral components with an interest in patience, coherence and peculiarity. This means associating the actors in the action system as broadly as possible with this concern. The architecture of economic activity Continuous interaction between design and action.. Construction is a balance between experimentation and risk-taking. Established business models always need to be strengthened. The role of the leader is, from this point of view, to permanently monitor to absorb signals that could question the robustness of the model.

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The quality of listening is essential for a cultural rather than technical approach. The time spent listening directly to customers and employees is a valuable indicator of the ability to validate and question model promises. The model’s architecture also needs to pay attention to its extensions. Therefore, expectations for territorial development and resource readiness also occupy an important position on the management agenda.

By placing yourself as Guarantor of the link between global and detailsThe manager gives meaning to the action and reminds people of the model’s vision and promise strength anytime, anywhere. By fostering intelligence in the action system and focusing on creating links, all levers can be directed in the direction of perspective and associated energy. This approach also enhances the ability of autonomous decision making and actor development.

The ability to constantly move between meaning and action, foresight and pragmatism, global perspective and local performance seems to be the first and essential skill a leader must have. .. Comfortable in both registers and not prioritizing one over the other is a cognitive and behavioral mode that requires continuous cognition and development.

In order to properly execute the business model, the manager finally Pilot of his performance and agility.. It is energizing and energizing by suggesting relevant indicators of behavior and final performance by clarifying the model and the means of value creation. It also initiates the ability to perpetuate learning, which is an important condition for the survival of any business model.

author

Denis Dauchy is a professor of business strategy at Edhec and a trainer and expert in the Progrès and Management clubs. The text published here is an excerpt from his book, Seven Steps for a Solid Business Model, and was published by Dunod in 2018 for the third full revision.