Business model is a concept used in explaining various aspects of the business ranging from its value proposition to the innovation process that a particular business entity wants to adapt in its business activity. A a business model comprises two elements. These are a specific business system and a profit model. The aim of framing a business model is to conceptualize a picture on how a business operates in its operating environment. In addition to this, a business model also provides the opportunity of using the available resources best as per the ability of the firm. The aim of the firm is to maximize the utilization of the resources available to them. The two components of the business model are inclined towards describing the maximum utilization of the resources and deliver the products to the consumers in a profitable manner. The business system is concerned with the system of work Continue reading
Modern Management Approaches
Organizational Effectiveness Through Adaptive-Coping Cycle
The organization must develop a system through which it can adapt or cope with the environmental requirements; Edgar H Schein has suggested that an organization can do this through the adaptive coping cycle, which consists of various activities that enable an organization to cope with the dynamics of environment. Adaptive-Coping Cycle is a continuous process. There are six stages in the adaptive-coping cycle as follows: Sensing of Change: The first stage is the sensing of change in internal or external environment. Most of the organizations have adaptive sub-system such as marketing research, research and development and other similar devices for effective coping with the environment. Importing the Relevant Information: Organizations must be able to take the relevant information from the environment, which constitutes the input. Changing Conversion Process: The organization takes the inputs from environment for further processing, normally known as conversion process. Stabilizing Internal Changes: The fourth stage of Continue reading
Open Innovation vs. Closed Innovation
Innovation is one of the important catalysts to the sustainable organizational growth and performance. The term of innovation is already used over the century ago and innovation meaning is focus more on the changes or improvement made by the organization either to their product/services, processes and paradigm. Innovation is the use of new technological and market knowledge to offer a new product or service that customer want and the new product must new, lower cost and the attributes of the product are improved with the attributes that never existed in the market before. The concept of innovation also defined as the process of making changes of something established by introducing something new that adds value to customers and contributes to the knowledge store of the organization. In simple words, innovation is described as a change that is made to the product and services and also to the process. Innovation has Continue reading
Employee Participation and Organization Performance
In the first instance is necessary to define both employee participation as well as what is meant by performance. Employee participation may be defined as the process by which employees are involved in the decision making process of a business rather than merely being expect to following instructions and as such this forms what is referred to in HR as empowerment. Performance on the other hand can be considered from two perspectives, firstly there is the performance of the individual in question and how their personal performance is affected by the concept of employee participation. Secondly there is the performance of the organization as a whole to consider and how this will change with varying degrees of employee participation. Approaches to Employee Participation Traditional views of the organization and approaches to management have seen a clear distinction between the tasks of managers and those of the grass roots level employee. Continue reading
Three Value Disciplines by Treacy and Wiersema
Value discipline, a term coined by Michael Treacy and Fred Wiersema in their book, “The Discipline of Market Leaders” to describe different ways companies can differentiate itself from competitors. A value discipline is more than just a benefit statement–it is a statement of strategic focus and provides a context for a company to set its corporate vision and objectives, to target its most profitable customers, and to focus and align its activities. Treacy and Wiersema identified three different ways of bringing together a compelling value proposition with an effective operating model. The basic idea is that any company can deliver value to its customers in three value disciplines. Operational Excellence: Delivering quality products or services at the lowest total cost with the least inconvenience and always on time. Companies pursuing operational excellence are relentless in seeking ways to minimize overhead costs, to eliminate intermediate production steps, to reduce transaction and Continue reading
The Benchmarking Process
Benchmarking is the process of comparing ones business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are quality, time and cost. In the benchmarking process, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the “targets”) to one’s own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful. Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others. Also referred to as “best practice benchmarking” or “process benchmarking”, this process is used in Continue reading