16th Book Chunk on Scanning a Business Model's Environment

Here a chunk outlining the external forces driving a business model. External forces were often referred to in the comments on the business model SWOT. We took that into account ...

We hope you appreciate this chunk which outlines the environment and design space in which one conceives a business model.

Like in the last chunk - but here even more important - we'd appreciate comments from "pharma experts". Do we need to add some elements in the pharma example? Does the pharma example look reasonable? What do you think?

Tags: Environment, Pharma

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Very good!
I have been missing this detailed "will the business really fly?" analysis. Maybe it shall have a title more reflecting that question rather than just "Environment".
I am not a "pharma expert" so no comments on the content as such, just a minor typo error on page 4 "Switching costs": it says "to a your customers" in the second column....

Good luck with the rest of the book work! !!!!

/Ola
Thanks for the input and the "heads up", Ola. Appreciate your comment!
Good stuff, Alex.

When reading the first paragraphs of the book chunk about why business model innovation is so important ans why it requires continuall scanning the external environment, I had to think about Henry Chesbrough and how he talks about business model innovation (see for example http://www.sssup.it/UploadDocs/2202_Business_model_innovation_H_Che...).
He describes these 6 stages of business models, where the last is the most ideal (and difficult) stage.
1. Undifferentiated business model
2. Differentiated business model
3. Segmented business model
4. Externally aware business model
5. Integrated business model
6. Platform leadership business model

For a company to move from 1 to 6 it must monitor and interact with its external environment much more closely. At the 6th stage, the company is actually shaping its external environment (see also the HBR article from Hagel, Brown and Davison, http://hbr.harvardbusiness.org/2008/10/shaping-strategy-in-a-world-...).

I think there is another argument for why scanning the external environment is so important in what these (smart!) people are saying. Maybe something to add? Or would this make the story too complex and theoretic? It is really clear and practical now...

It's up to you ;-)
Wouter, great point. Now that I am revising the chunk based on the Hub's feedback I kept it simple, but added the following sentence which includes your point:

With a breakthrough business model you may even become a shaper and transformer of this environment and set new standards.
Awesome. This is the great stuff as it presents the most important, but rather obscure part of business model development. As all business models exist in a dynamic and specific internal control challenges, we ought to modify the business model theory to include external and internal variables applicable to business model, in a manner similar to non linear multivariable control systems.

The 'Environment' provides changes or 'disturbances' when factored in with better accuracy and quality of information, do provide more productive and profitable business models, which in any case our foremost objective in creating the business models in the first place!

Hopefully I will be developing some feedback control framework for business models soon, and will be more than happy to share with all participants.

Happy writing Alex, and one more suggestion, how about offering a PDF version of the book so that there is no S&H added costs

Cheers

Haider 'Beeru' Raza
Haider, I look forward to your thoughts on "control frameworks". The hub members will certainly be interested in that!

As to the pdf: Not quite sure if we'll do that. But your voice was heard ,-9

We might also offer some other online version in the future. For example slides with the voices of the authors... Much to do once the book content is finished.
I think the file needs reformating - reads as html with undeciphered code
Link isn't working properly - just get a screen full of code. Any ideas as to what's wrong?
Hi, I have the same problem.
A
Same problem here in Australia!!
Dear all,

Somehow the Ning platform generates the wrong code and we can't influence that. However, you can easily download by doing the following:

* click right mouse button (on Mac ctrl & mouse button)
* use "save as..."
* save the pdf document on your desktop

Sorry for the slight inconvenience - nothing we can do apparently.
Thanks, Alex

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