I am currently reading an interesting working paper from Laurence Lehmann-Ortega, Business model: from buzz word to managerial tool.

As I am working on it, I still need time to completely catch this concept and I will probably complete these words.

Nowadays, it seems that traditional strategy concepts need to be reconsidered. In fact, environment is now on a perpetual change due to new information technology. Companies need pragmatism, flexibility and reactivity. It seems that a new strategy analysis unit is needed to face this changing environment on a realistic way. Nowadays, we cannot consider a global “screenshot” of the competitive environment as it is changing all the time.

Business model could pertinently complete strategy concepts adding a customer-focused side to the theory (contrary to an environment-focused concept). Thus, we consider here the generated value for customers before considering competitors: customer is now central.

To make it short, we could describe business model as it follows:

Value proposition (products /services, customer segment) > Value architecture (resources, internal/external value chain) > Revenue model (cost structure, value capture)

To combine business model and strategy concepts (competitive analysis, key competences) permits a complete overview of the company. The manager is then able to consider the company’s development guideline on the best way.

A successful manager has a transversal view of the company, considering each dimension: marketing, finance, production, administration… I would say that the hardest thing here is not to understand these concepts; it is to manage these concepts on an operational way.