INTG 202 Chapter Notes - Chapter Business Models: Disruptive Innovation, Dow Corning, Ipod

• School: McGill University
• Department: Integrated Management
• Course: INTG 202
• Professor: Miwako Uesaka

Document Summary

Fault lies not with the concept of the business model but with its distortion and misuse. A good business model remains essential to every successful organization. In most businesses, costs precede revenues: before anyone can buy your product, you"ve got to (cid:271)uild a(cid:374)d pay for it. A successful business mode represents a better way than the existing alternatives. Business modeling is the managerial equivalent of the scientific method hypothesis, tested in action, review when necessary. By enabling companies to tie their marketplace insights much more tightly to the resulting economics, spreadsheets make it possible to model businesses before they were launched. When managers operate consciously form a model of how the entire business system will work, every decisions provides valuable feedback. Narrative test: story does(cid:374)"t (cid:373)ake se(cid:374)se: assumptions, eg. like other big companies will play the game, loyalty, eg. Webhouse model teaches customers to buy on price alone, assumptions that big companies like p&g and exxon would play the game.