Company executives need to be aware of how the Business Model Canvas (BMC) helps to focus the business on key strategic elements that define the course of the organization, and that have the most impact in regards to growth development. Besides, the visual nature of BMC needs to be understood and utilized as it enables comprehension by allowing the executives to easily see the organization`s overall image and thus identify the strengths and weaknesses of the firm. Business owners also require a business model that comprises the whole which is greater than the sum of different parts combined. There should be a common language and reference that can be useful in articulating, sharing, and gaining feedback on the business model together with constituent parts. In general, company executives need to understand the engaging, impactful, and resonant nature of BMC in connection with creating value proposition (Dudin, Lyasnikov, Leont’eva, Reshetov, " Sidorenko, 2015).
Today, most company executives do not set out to understand the emerging business models, what new strategic management models exist, and how both established and new companies are embedding sustainability into their underlying business structures. In most circumstances, they stick to their traditional approaches due to their vested interests. The assumption is no need to fix what is not broken. Thus, it is hard to convince them to change their business models based on opportunities or threats that have not materialized (Kim " Min, 2015). The application of BMC, therefore, often remains incremental or piecemeal, rather than fundamental, transformational and system-wide despite the fact that there is a need for basically different approaches to the documentation and development of value proposition, finances, customers, and infrastructure.
To solve this problem, company executives need to attend mini-courses that will teach them how to use the Business Model Canvas tool to approach corporate opportunities or challenges. The course will help them learn how to effectively recognize and communicate the key elements involved: Value Proposition, Customer Segments, Revenue Streams, Channels, Cost Structure, Customer Relationships, Key Partners, Key Activities, and Key Resources.
Sources
Dudin, M. N., Lyasnikov, N. V. E., Leont’eva, L. S., Reshetov, K. J. E., " Sidorenko, V. N. (2015). Business model canvas as a basis for the competitive advantage of enterprise structures in the industrial agriculture. Biosciences Biotechnology Research Asia, 12(1), 887-894.
The article is useful since it studies the specifics involved in making use of a new management concept model canvas in ensuring competitiveness management. The authors also provide useful insight on how an enterprise can secure its competitive advantage by ensuring a renewal of business model canvas.
Kim, S. K., " Min, S. (2015). Business model innovation performance: When does adding a new business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), 34-57.
The article describes how incumbent organizations add a business model to an existing one as a way of responding to a disruptive business model. The article is useful because it provides information on how a new business model can improve the performance of an incumbent.
Murray, S., Lazure, P., " Peloquin, S. (2017). Understanding culture and subcultures for efficient and sustainable transformation. People " Strategy, 40(2), 40-46.
The article focuses on transformation in business sectors and barriers involved. It is useful since it explains communication barriers that affect change implementation. The paper also identifies gaps in the knowledge of the roles and responsibilities of individuals in organizations and how it affects communication and transformation in business models.
References
Dudin, M. N., Lyasnikov, N. V. E., Leont’eva, L. S., Reshetov, K. J. E., " Sidorenko, V. N. (2015). Business model canvas as a basis for the competitive advantage of enterprise structures in the industrial agriculture. Biosciences Biotechnology Research Asia, 12(1), 887-894.
Kim, S. K., " Min, S. (2015). Business model innovation performance: When does adding a new business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), 34-57.
Murray, S., Lazure, P., " Peloquin, S. (2017). Understanding culture and subcultures for efficient and sustainable transformation. People " Strategy, 40(2), 40-46.
