New business models can provide better blueprints for creating value, which economies and societies can use to tackle the challenges they face and flourish.
From technology to demography, the global economy is entering a new era. Reappraisal of value proposition, value creation and value capture that make up the essence of business models can open up new opportunities for business to thrive.
Not just technology
The rise of platforms, the changing nature of work, the means by which services are provided and the digitisation of manufacturing are just some of the shifts that technology is making possible.
But new business models are not just about technology. Around the world new markets are emerging and old ones are evolving. Unquestionable economic certainties are being challenged. What were intangible environmental impacts are now daily healthcare problems for millions. What people value is changing.
Elevating the business model
Factors that have elevated the business model include:
- tumbling tech costs bringing ideas to the fore
- the rise of start-up culture
- the rise of tools to meet growing interest
- networked capital
- a changing world that needs new models.
The ‘Full Stack’
The’ Full Stack’ is an end to end framework to help understanding and assessment of the value creation potential of new business models.
It is made up of two sections:
1. The back-end comprises five layers. Taken together they combine to create the foundations for future business models.
2. The front-end comprises five layers. It brings together key socio-economic horizons faced by businesses today.
Together the two ends provide a tool for exploring the potentials of business models and the context in which they will operate.
"Across three spheres of the business model, value proposition, value creation and value capture, professional accountants can provide a multidimensional set of skills that allow for opportunities to be realised."
Beyond being Ubered
Six business models have been selected for their breadth, diversity and interconnectedness.
Mass customisation 2.0 Example: Opendesk furniture manufacturer
Example: Renault’s $6,000 Logan car
Example: TimeRepublik time-banking platform
Pay what you want
Example: Humble Bundle, digital storefront for video games.
Example: Kernel brewery based in Central London.