Saturday, May 02, 2009

Early 'business model' models: Humphrey's TAM

Most of us will know different frameworks or models for business models, like Osterwalder's business model canvas, Weill & Vitale's e-business models, Bouwman et al.'s STOF model, Gordijn's e3-value, etc. Most of these frameworks and models are relatively recent. Are there similar frameworks and frameworks from the past?

During a search for SWOT analysis, I came across a framework from Humphrey (see here). A further search on Humphrey brought me to his 'team action management' (TAM) business performance model (see here).

TAM describes six inter-related areas which have to be developed simultaneously for a business to be successful:

  1. Products & services: what are we selling?
  2. Process: how are we selling it?
  3. Customer: to whom are we selling it?
  4. Distribution: how does it reach them?
  5. Finance: what are the prices, costs and investments?
  6. Administration: how do we manage all this?
Another interesting fact about Humphrey is that he was a strong advocate of involving all employees in business planning and, therefore, promoted a systematic approach to produce and achieve a plan to accomplish a specific result, in a specific time, to a specific budget while working with a group of people.

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