Business Modeling Quarter

Business Modeling Quarter (hereinafter, the Quarter) is the first of four lectures of Operations Quadrivium (hereinafter, the Quadrivium):

• The Quarter is designed to introduce its learners to enterprise discovery, or, in other words, to concepts related to obtaining data needed to administer the enterprise effort; and
• The Quadrivium examines concepts of administering various types of enterprises known as enterprise administration as a whole.

The Quadrivium is the first of seven modules of Septem Artes Administrativi, which is a course designed to introduce its learners to general concepts in business administration, management, and organizational behavior.

Outline

The predecessor lecture is Feasibility Study Quarter.

Concepts

1. Business model. The part of one or more business strategies that suggests how an enterprise is going to make money in one or more of its businesses. The business model usually answers two key questions: how the enterprise is going to earn money and how it is going to spend.
   • Model. An abstraction of reality, a simplified representation of some real-world phenomenon.
   • Business plan. A written document that summarizes a business opportunity and defines and articulates how the identified opportunity is to be seized and exploited.
2. Competitive strategy. A strategy for how an organization will compete in one or more of its businesses.
   • Cost leadership strategy.
     1. Manufacturing organization. An organization that produces physical goods.
     2. Mass production. The production of items in large batches.
     3. Mass customization. Providing customers with a product when, where, and how they want it.
     4. Exporting. Making products domestically and selling them abroad.
     5. Importing. Acquiring products made abroad and selling them domestically.
   • Differentiation strategy.
     1. Innovation. Taking change ideas and turning them into new products, product features, production methods, pricing strategies, and ways of enterprise administration.
     2. Sustaining innovation. Small and incremental changes in established products rather than dramatic breakthroughs.
     3. Disruptive innovation. Innovations in products, services, or processes that radically change an industry's rules of the game.
   • Focus strategy.
     1. Service organization. An organization that produces nonphysical products in the form of services.
   • Competitive advantage. What sets an organization apart; its distinctive edge.
3. Value chain. The entire series of organizational work activities that add value to each step from raw materials to finished product.
   • Value. The performance characteristics, features, and attributes, and any other aspects of goods and services for which customers are willing to give up resources.
   • Service profit chain. The service sequence from employees to customers to profit.
   • Technology. The way in which an organization transfers its inputs into outputs.
   • Cloud computing. Refers to storing and accessing data on the Internet rather than a computer's hard drive or a company's network.
   • Internet of things. Allows everyday "things" to generate and store and share data across the Internet.
   • Sharing economy. Business arrangements that are based on people sharing something they own or providing a service for a fee.
4. Strategic plan. A plan that applies to the entire organization and establishes the organization's overall goals.
   • Strategy. The plan for how the organization will do what it's in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.
   • Strategic flexibility. The ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake.

Instruments

1. Business Model Canvas.

The successor lecture is Chief Execution Quarter.