Question

explain the sequence of shifts in the driving business model by combining the phases in the evolution of business models with the oscillations in value-creating opportunities. Provide applications of your understanding.

Answer 1

Drivers of business are those which result in driving the financial and operational goals of an organisation worldwide. Let us consider a global organisation a multinational corporation which operates in a number of countries.The basic components of a global organisation would be

1. Global Core

2. Business Units

3. Service Delivery

4. Governance

5. Business Linkages

This is the sequence of events which lead to the evolution of drivers in a company and lead to creation of value. The global core is the radical transformation of the old corporate center .The business units are the assets where change is made to increase value . Business units gets realigned frequently to incorporate change and derive value. When we are talking about service delivery we are talking about the channels of delivery. We should ensure where the service delivery should be delivered from. At least certain amount of service delivery should be from core channel . There should be a limit to outsourcing. By governance we are looking at defining targets , monitoring achievement and performance and sticking to fiduciary and legal guidelines . By business linkages we mean potential acquisitions to achieve core competencies.