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【正文】 its activities cannot sustain those activities over time. There can be real tensions between the aspects of a business model that create value and those that help to capture a portion of that value. A highvalue proprietary technology, for example, easily earns a profit for the firm, if alternatives offer lesser value. But in many circumstances customers are reluctant to buy such products (because of price, limited availability, or delivery or service issues).Yet making the technology more open, which makes it more appealing to customers, makes it harder to capture value from the offering. So these offsetting factors must be balanced. How to define a business model? The term ??business model‘‘ is often used, but not often clearly defined. Richard S. Rosenbloom, Professor Emeritus of Harvard, and I have developed a specific working definition (see Exhibit 1)[1]. 畢業(yè)論文 Ⅲ － 16 A better business model often will beat a better idea or technology. One benefit of this working definition is that each of its six parameters identifies where innovation might generate new value in an industry. Value proposition. The GE Aircraft engines unit crafted an innovative value proposition when they shifted from selling airlines jet engines to selling them flight hours. This shifted the risk of downtime from the airline customer to GE, and enabled GE to establish a very profitable service operation. Target market. Ryanair, a growing European discount airline, innovated a different target market by going after leisure travelers, instead of the usual business travelers. Value chain. WalMart (which targeted an innovative market by going after underserved rural munities in its early days) is celebrated for its management of its supply chain. Revenue mechanism(s). Xerox got its start in the copier business by leasing its copiers, instead of selling them. Air Products gets paid for the delivery of its industrial gases right to the manufacturing station inside the plant, instead of by the box car. 畢業(yè)論文 Ⅲ － 17 Value work or ecosystem. Ryanair again innovated here, by striking novel arrangements with underutilized regional airports. Ryanair gets a percentage of concession sales at these airports, and in some circumstances even gets paid for landing passengers at the airports. Competitive strategy.. One interesting aspect of business models is how difficult it is for others to imitate them. Many airlines have tried to emulate Southwest‘s low cost approach. Most of their attempts have not fared well. Copying the Southwest model apparently creates too many conflicts with the airlines‘ established business model. Thus this working definition points the way to certain improvements that can be made to a business model. But more can be done to improve a specific business model if managers think of stages of business model advancement. The Business Model Framework (BMF) is a model that sequences possible business models from very basic (and not very valuable) models to far more advanced (and very valuable) models. Using the BMF, panies can assess where their current business model stands in relation to its potential and then define appropriate next steps for the further advancement of that model. The Business Model Framework Type 1 – Company has an undifferentiated business model. The vast majority of panies operating today do not articulate a distinct business model, and lack a process for managing it. These panies are operating with Type 1 business models. A business using the undifferentiated model petes on price and availability, and serves customers who buy on those criteria. In a word, firms utilizing Type 1 business models are selling modities, and are doing so in ways that are no different from many, many other firms. They often are caught in the ??modity trap‘‘. Think of restaurants and barber shops as examples of this modity model. Type 2 – Company has some differentiation in its business model. In panies using Type 2 business models, the pany has created some degree of differentiation in its products or services. This differentiation can also 畢業(yè)論文 Ⅲ － 18 lead to a different business model from that of the Type 1 pany, allowing the pany to target a customer other than those that buy simply upon price and availability (such as a performanceoriented customer). This allows the Type 2 pany to serve a different and less congested market segment from that served by its Type 1 counterpart. The Type 2 pany may lack the resources and staying power to invest in the supporting innovations to sustain its differentiated position. This gives rise to the pattern of socalled ??one hit wonders‘‘, where a pany or inventor has a successful first product, but is unable to follow up this success with additional products of similar success. Many technology startup panies fall into this type. Type 3 – Company develops a segmented business model. The pany now can pete in different segments simultaneously. More of the market is thus served, and more profit is extracted from the market as well. The price sensitive segment provides the volume base for high volume, low cost production. The performance segment supplies high margins for the business. Other niches can now be addressed, creating a stronger presence in the distribution channels. The firm‘s business model now is more distinctive and profitable, which supports the firm‘s ability to plan for its future via product and technology roadmaps. While its greater level of planning helps the Type 3 pany avert the onehit wonder syndrome, problems still remain. The Type 3 firm remains vulnerable to any major new technical shift beyond the scope of their current business and innovation activities, and also to major shifts in the market. Think of a mature, vertically integrat