General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.
What is the scope for this activity in corporate sector?
In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC page 115, it is mentioned that an average firm has 50 profit centers.
General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.
What is the scope for this activity in corporate sector?
In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC page 115, it is mentioned that an average firm has 50 profit centers.
General management is profit center management. It is management of both marketing-sales and operations or supply chain function and the necessary support functions.
What is the scope for this activity in corporate sector?
In the Book Meta Analytic Organization, by Lex Donaldson, http://books.google.co.in/books?id=KwE5hMr-2YsC page 115, it is mentioned that an average firm has 50 profit centers.
A business model has a demand curve for the product of the company and a supply curve for the product of the company. The company has to derive the demand curve based on market research of customers and competitors.
The company has to derive the supply curve based on its operations plan, that includes product/service design, location, technology and its further development, human component-capital component choices, resource maintenance ability, cost management ability, learning ability and its supply chain.
Any acceptable business plan must have the required profit visible in this combination of demand and supply curves.
The business model is presented with the demand for the price the company wants specify and the corresponding supply.
How do you develop one?
You have to develop the concept of your product and distribution channel. You need to define your customer or the target market. The credit terms you plan to give have to be specified You need to specify your marketing communication effort. Then you have do market research to come out with demand estimate. To start-up financiers you have to give all the details. Some of them are going to assess your business model logically. Some of them may do some actual market research as a sample in a small space.
Similarly you need to develop various details of your operations plan. Develop cost estimates for your operations chain. Give the details to financiers so that they recheck whether you will be able to supply at the estimated cost the product or service to the market.
Why Business Models Matter?
Joan Magretta
Harvard Business Review, 2002
Michael Hammer proposed Business Process Reengineering (BPR)
Venkat N Venkatraman is reminding business leaders the new imperative - Business Model Reengineering.
For Hammer, the base for BPR was technology.
For Venkatraman, the base for Business Model Reengineering is Web. Now it is cloud. People across the globe are now connected through the cloud and are in instant touch. Communication and transactions are now taking place instantly in the cloud. The bandwidth available to users will still further increase and cloud or web based interaction will increase exponentially and time delays will decrease further substantially.
Just as Hammer told business people don't automate business process but reengineer them. Obliterate the current processes and design radically new processes by understanding the power of the new technology.
Venkatraman gives similar call. Don't transfer the work under the current business model to a cheaper location using cloud. Radically reengineer your business models. You can build more effective and efficient business models.
Has any body done it? Yes. You have totally digital technology based businesses like Google, Amazon, Facebook, Twitter. Yes, they created radically new business models. But the surface of the scope is yet to be scratched. Businesses have not yet grasped the potential.
Venkatraman says, don't look at your current competitors with the same business model and be complacent. There are many small players in the shadows experimenting with digital technology business models. If you don't take initiatives now, you may face a sudden challenge that you can't survive.
Five Web Framework
Venkatraman formulated the five web framework as Mobile Web, Social Web, Media Web, Real-time Weba and Machine Web. These five webs are interconnected also.
Mobile web has 5 billion mobile phones. Social web has users on Facebook and Google+ and many others. Media Web has YouTube and many blogs on various platforms apart traditional media now offering e-editions Real time web has twitter. Machine web is the connected machines communicating with each other and taking actions through digital communications.
In the digital economy and infrastructure, advertising has become an important revenue source and permission has become a marketing step. Consumer has more involvement in product creation as well as product promotion.
IT-Enabled Business Transformation: From Automation to Business Scope Redefiniton.
Venkatraman, N
Sloan Management Review; Winter 1994; 35, 2; Pp. 73-87
Journal of Management - Prof Venkatraman is the 22 most downloaded management researcher.
Related Articles and Reports
Business Transformation and New Business Model - Accenture Presentation
YouTube Video upload by Accenture
1913 - The continuous moving assembly line was introduced by Ford in his Highland Park plant, Detroit, Michigan. The factory was capable of delivering a car every 2-min 38-sec and the chassis was pushed from station to station. http://www.pbs.org/wgbh/aso/databank/entries/dt13as.html
Ford took the support of Frederick Taylor, the creator of "scientific management," to do time and motion studies to determine the exact speed at which the work should proceed and the exact motions workers should use to accomplish their tasks.
1977, the isolation of the bacterium Legionella pneumophila that was the cause of Legionnaire's Disease, was described in a scientific paper published in The New England Journal of Medicine by scientists at the Centers for Disease Control (CDC) in Atlanta, Georgia,
