Posted by Prac on September 01, 2002 at 11:28:10:

In Reply to: Re: what is a business model? posted by M. Saedi on September 01, 2002 at 00:30:24:

Hi

I agree with you about the two parts. Let me point out that the most important part of a business model is the strategic and/or tactical plans that you design into the model.

Another word for design is architecture. We are talking about a business architecture that will probably have a people and technology section in it as well.

The framework will represent the sum of all the parts. The framework will have to be linked to your understanding of your business environment.

If we merely look at business processes for a business model, we might miss the strategic and tactical value of the business idea. Reverse engineering of business processes, without the benefit of business rules and policy makes the extraction of a business model from an existing environment quite impossible.

Most business ideas are hidden within the methods and structure. You are suggesting a forward-engineering approach, and I would therefore advise you to think about the next thoughts I am offering.

The business processes typically show the way the business will operate, and represents an operational model of the business model. The business processes could change, but the business model could still remain the same.

May I suggest you design the business model at a higher level than business processes and business rules. I have found the concept of business laws to be very helpful in this way. Business laws don't change as easily as business processes and business rules, and it gives an organization more control over their business model. If Enron, and all the other companies who find themselves in legal trouble, had been loyal to their business laws, then it would have been impossible for them to become corporate criminals, and many people would not have been hurt. The business model should consider, and represent the interests of the whole organization, including the interests of the employees.

Before you start, you will have to accept in advance that money and time will have to be spent on keeping a balance between the KM business model and the existing realities of the other business models, for example the Marketing, or HR models. Do not make the mistake of trying to do radical engineering of the business without connecting the "new" model to the existing business. Also, do remember to think ahead and allow space for other business models to connect to yours, when they do come along in the future. It is all in the design.

A business represents a system. Make sure all the parts do what they have to do to get the whole system working better and stronger.

All the best.

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Follow Ups:

• Re: what is a business model? M. Saedi 01:26:50 09/05/02 (4)
  • Re: what is a business model? prac 16:01:56 09/05/02 (3)
    • Re: what is a business model? Denise 00:00:40 09/10/02 (2)
      • Re: what is a business model? Prac 13:58:31 09/10/02 (0)
      • Re: what is a business model? Denise 02:08:30 09/10/02 (0)

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