Wednesday, October 06, 2010

Charles Baden-Fuller on business models

Professor Baden-Fuller explains that the business model is about creating and capturing value and that both can be relatively simple or more complicated. He than differentiates between the business model today and in the future. For a robust future business model it needs to offer sustainable competitive advantage (value creation side) and there should be any chance that it will grow and become big (the value capture side, the scaling question).

Professor Baden-Fuller also discusses the talent of making the explanation of a business model come alive, like an artist making a decent picture. This helps businesses getting a grip on their current and future situation, and it gives them a story to tell to their stakeholders. Finally, he discusses the meaning of the term 'model' in terms of a working model telling the essence and an iconic model (like on the catwalk) people can refer to. He also links it to the code of corporate governance.

Professor Baden-Fuller is Professor of Strategy and leader of the Strategy Group at Cass. He is internationally known for his strategy research. Most famous for his work on the rejuvenation of mature firms. He was one of the co-editors of a special issue on business models in Long Range Planning (see also here or here).

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