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Six kinds of errors on the business model of the new understanding of | marketing (1)
2017-11-20 10:36:51

In the practice of business model optimization, remodeling or innovation, I find that there are many misconceptions about the true nature of business models. And these misconceptions will have a very bad impact on business model building. The following are the six most common misconceptions that can be summed up from a large number of practical observations.

Business models are entrepreneurial ideas

In some people, business models and existence, not what true with strict structure of the things, ideas, experience and intuition, or sixth sense but like entrepreneurs spiritual breakthrough. According to this understanding, the innovation of business model is often like this: someone suddenly thinks about all the links after a long period of meditation and meditation, and then he gets up with his clothes and his eyes are round. "I think, I succeeded!"

Business models are not the ideas of entrepreneurs or entrepreneurs, no matter how great the idea is. A great idea may be the starting point for an innovative business model, but it's just the starting point! The consequences of this perception are often that the enterprise cannot consciously and systematically promote the construction, inspection and optimization of business models.

Business model is a new way to make money

In reality, many people see business models as a new way to make money. The Internet era has created a lot of business models, opportunities for innovation, or conditions (which I'll describe in more detail later in this chapter). When the solutions to customer problems due to the emergence of the Internet has become a very rich source of profit, will also become diversified, strategy principle originally not complex has been described by some so-called "experts but cry up wine and sell vinegar, earn money pig".

If this sentence from a business model system to understand the structure of the people's mouth, he can in this very vivid metaphor gives more accurate explanation; if the people do not understand the business model, just want to put the words "show" that will give others to mislead.

In a simple way, the profit point (that is, the "pig" mentioned above) is only an integral part of the business model, which is built on the basis of the customer problem solution and needs cover business assistance. The business model is merely a way to make money, and it's a loss of simplicity.

Business model is financial model

The business model as a financial model, is a little financial knowledge, more sensitive to corporate finance, like to regard themselves as "professional" people like the definition. They even use some financial ratios to measure the business model of an enterprise.

In fact, neither financial model nor financial situation is just the result or performance of an established business model, which is not a business model in itself.

Business model is a new market development model based on new technology, or is the new technology application itself.

The business model is regarded as a new technology or a new market development model based on new technology, which is a misconception that people with scientific background tend to accept.

But why do you say that? Every time a new technology appears, its market application begins. Some of them are successful, but the percentage of failures is high.

Every time there is a new way of application, it is always regarded as a new business model. For example, the use of nanomaterials in artificial hair is a boon for alopecia areata around the world. The application itself is not a new business model.

Logically, the same application can have an infinite variety of business models; from a practical experience, a new technology in a certain field of application, usually there will be several different business models. Application only provides a direction, does not represent the specific business model in this direction.

This paper from the "business model."

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