Discuss about the Business model canvas perspective on big data applications.
Business innovation is when an organization comes up with ideas of creating more effective processes and products. This could mean implementing new ideas by creating new or improving services that already existed. This could speed up the growth of a business and also increase the market and customer base. Sustainable business development is when a business improves and comes up with new strategies to meet the needs of the organization while protecting and enhancing natural and human resources needed in the future.
Business Model is a structure used by new business enterprises for its successful operation, it simply states how the business or company will generate its revenue and maximize on its profits. It states the type of product or services the business produce and the very products or services are to be marketed and the amount of expense the business will incur. For a business to come up with a good business model, one has to know about the value proposition for that business. A value proposition is a statement that clearly states the services and products the company offers and is of value to prospective clients, ideally in a way that differentiates the company from its competitors. A good business model should stipulate the startup costs and ways in which the business is going to finance its daily activities. It should also include its customer base, its market strategy, projections of revenue and expenses and its competition. One reason most business doesn’t succeed is failing to project the basic expenses to the point where the business will start making profits. There are different types of business models. Franchising, direct sales brick-and –mortar and advertising based. Two businesses operating within the same industry need different business models since they have competitive advantages and disadvantages.
Disruption is a business term which refers to an innovation that creates a new market and value network that later on displaces established market leading firms, products and alliances (Ab Rahman et al., 2007). The term was defined and first analyzed an American scholar Clayton M. Christensen and his fellows in the year 1995 (Bower, Joseph & Christensen, 1995). Disruption is usually caused by outsiders and entrepreneurs and not by market leading companies because the business environment of market leaders don’t allow them to use disruption when they arise since they are not profitable enough at the beginning and also because their development can take the less existing resources away from sustaining businesses which are needed to compete against current competition. (Christensen, 1997).
Developing novel smart connected products is an important part of the radical PIPS research. This includes firms in different fields of the industry such as communication, transport, medical and kid’s toys. The innovation and commercialization of the Procter and Gamble products illustrated this smart connected product trends.
Procter and Gamble is headquartered in downtown Cincinnati, Ohio and is one of the largest manufacturers of consumer goods. Procter and Gamble group is publicly owned and according to “2016 Earnings report, The Procter and Gamble company” the company has 95,000 employees with subsidiaries in over 27 countries focused in supplying more than 50 different products to over 100 countries around the world. The company has a large corporate research and development organization and innovation has always been important to its success.
Procter and Gamble success story is based on i] supplying of innovative incontinence products such as cleaning agents. ii] Early adoption of technology for manufacturing, warehousing and distribution of products to consumer goods providers. Technologies adopted include: online ordering, automation and robot technologies for manufacturing and warehousing combined with a one day delivery of consumers all over the world.
Smart connected products are assets and any other thing fitted with processors, software’s, sensors and connectivity that allow transfer of data between the environment, manufacturer, operators, users and other products and systems. The data collected from these products help the organization in decision making, operational efficiencies and continuously improve the products performance.
There are several opportunities that come with the smart connected protects.
There are different threats associated with the smart connected products that can affect any business model.
A summary illustration of the existing business model of The Procter & Gamble Company is shown below. The problems facing the business model can be dealt with to come up an improved business model canvas. The changes that are needed are primarily in the customer relationship sector, the revenue streams section and the value proposition which affects other sections.
|
Business Model Canvas For Procter & Gamble |
||||
|
Key Partners Used for · Customer acquisition · Oral advertisement · Partnership |
Key Activities · Outlining of business processes · Products · Product development · Machine maintenance |
Value Propositions · Functional and easy to use · Customer become owner of the product · Contract not essential · Instruction on how to use the products is always given |
Customer Relationships · No focus on acquiring customers · Relationship not required by owner customers |
Customer Segments · Customersthat require different product · Market base |
|
Key Recourses · Skilled personality · Product knowledge base |
Channels · Social media · Advertisement · Websites · Emails |
|||
|
Cost Structure · Most important costs are product production costs · Value driven costs always used |
Revenue Streams · Pricing strategy used based on material used · Most revenue is obtained from the sale of products manufactured |
To build the existing business model for Procter & Gamble, the business model canvas has to be used e have different building blocks and we have analyzed them below.
Procter and Gamble offers its customers with daily consumable products. They offer these products at very affordable prices .This is a strategic choice which helps the company to compete with other companies.
Procter & Gamble acquires its resources mainly from the sale of its consumable products and shares bought by the shareholder. These resources help the company in running its daily activities without disruption.
Procter & Gamble has a system process that helps the company perfume its activities and help in storing the company’s information securely and safely. This information is highly sensitive and that’s why the company always comes up with ways to protect it from hackers and thieves.
In the existing situation Procter & Gamble has to come up with a pricing formula. The company first estimates the production costs of the products and decides what price they will be selling each price at. Once the estimate matches with their budget they start the billing process.
For Procter & Gamble to remain innovative, they have to continuously develop and adapt to their business model. According to Osterwalder et al. (2005) business models have several importances to any existing business.
Conclusion
The business model is a very important concept in helping companies implement its ideas and visions which help see the company grow. Business Models can also be used as sources of competitive advantages. Bussines providing the same services cannot copy each other’s business models since the process of value creation is different. An organization has to always monitor, evaluate and improve the business model so as to remain on top of its competitors.
References
Ab Rahman, Airini; et al. (2017) Emerging Technologies with Disruptive Effects
Bower ,Joseph L. & Christensen, Clayton M (1995) Catching the Wave,Havard Business Review
Christen, Clayton m. & Overdof, Michael (2000). Meeting the Challenge of Disruptive Change, Havard Business Review
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., &Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.
Joyce, A., &Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Kiel, I. H. (2014). Entrepreneurial marketing.
Meertens, L. O., Iacob, M. E., Nieuwenhuis, L. J., Van Sinderen, M. J., Jonkers, H., &Quartel, D. (2012, March). Mapping the business model canvas to ArchiMate. In Proceedings of the 27th annual ACM symposium on applied computing (pp. 1694-1701). ACM.
Muhtaroglu, F. C. P., Demir, S., Obali, M., &Girgin, C. (2013, October). Business model canvas perspective on big data applications. In Big Data, 2013 IEEE International Conference on (pp. 32-37). IEEE.
Osterwalder A & Pignuer Y,Business Model Generation (2010). John Wiley and Sons
Osterwalder, A., &Pigneur, Y. (2010). Business model canvas. Self-published. Last.
Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., & Ferreira, J. J. P. (2011). Business Model Generation: A handbook for visionaries, game changers and challengers. African journal of business management, 5(7), 8918-8932.
The Procter & Gamble Company Earning Report, Retrieved February . August 14th ,2016.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download