Business Model Canvas Perspective On Big Data Applications

Discussion

Discuss about the Business model canvas perspective on big data applications.

Business innovation is when an organization comes up with ideas of creating more effective processes and products. This could mean implementing new ideas by creating new or improving services that already existed. This could speed up the growth of a business and also increase the market and customer base. Sustainable business development is when a business improves and comes up with new strategies to meet the needs of the organization while protecting and enhancing natural and human resources needed in the future.

Business Model is a structure used by new business enterprises for its successful operation, it simply states how the business or company will generate its revenue and maximize on its profits. It states the type of product or services the business produce and the very products or services are to be marketed and the amount of expense the business will incur. For a business to come up with a good business model, one has to know about the value proposition for that business. A value proposition is a statement that clearly states the services and products the company offers and is of value to prospective clients, ideally in a way that differentiates the company from its competitors. A good business model should stipulate the startup costs and ways in which the business is going to finance its daily activities. It should also include its customer base, its market strategy, projections of revenue and expenses and its competition. One reason most business doesn’t succeed is failing to project the basic expenses to the point where the business will start making profits. There are different types of business models. Franchising, direct sales brick-and –mortar and advertising based. Two businesses operating within the same industry need different business models since they have competitive advantages and disadvantages.

Disruption is a business term which refers to an innovation that creates a new market and value network that later on displaces established market leading firms, products and alliances (Ab Rahman et al., 2007). The term was defined and first analyzed an American scholar Clayton M. Christensen and his fellows in the year 1995 (Bower, Joseph & Christensen, 1995). Disruption is usually caused by outsiders and entrepreneurs and not by market leading companies because the business environment of market leaders don’t allow them to use disruption when they arise since they are not profitable enough at the beginning and also because their development can take the less existing resources away from sustaining businesses which are needed to compete against current competition. (Christensen, 1997).

Developing novel smart connected products is an important part of the radical PIPS research. This includes firms in different fields of the industry such as communication, transport, medical and kid’s toys. The innovation and commercialization of the Procter and Gamble products illustrated this smart connected product trends.

            Procter and Gamble is headquartered in downtown Cincinnati, Ohio and is one of the largest manufacturers of consumer goods. Procter and Gamble group is publicly owned  and according to “2016 Earnings report, The Procter and Gamble company” the company has 95,000 employees with subsidiaries in over 27 countries focused in supplying more than 50 different products to over 100 countries around the world. The company has a large corporate research and development organization and innovation has always been important to its success.

Procter and Gamble success story is based on i] supplying of innovative incontinence products such as cleaning agents. ii] Early adoption of technology for manufacturing, warehousing and distribution of products to consumer goods providers. Technologies adopted include: online ordering, automation and robot technologies for manufacturing and warehousing combined with a one day delivery of consumers all over the world.

Smart connected products are assets and any other thing fitted with processors, software’s, sensors and connectivity that allow transfer of data between the environment, manufacturer, operators, users and other products and systems. The data collected from these products help the organization in decision making, operational efficiencies and continuously improve the products performance.

There are several opportunities that come with the smart connected protects.

• Control – These products can be controlled remotely since the products have algorithms fitted in the product cloud.
• Optimization – Flow of data from these products which have the capacity to control its operation.
• Autonomy – These products can adapt to user preferences and reduces the need for operators.

There are different threats associated with the smart connected products that can affect any business model.

• Privilege Escalation – these are bugs that can be used to gain access to some resources that are encrypted with higher privileges that can bypass security control.
• Virus – These are computer programs that have the ability replicate and infect other systems.
• Worm – These are viruses that are used to alter system files these later on alter the speed which the system operates with. Worst case scenario it may crush the organization system.
• Hackers – These are people who can access your system remotely and steal the information stored on it.

A summary illustration of the existing business model of The Procter & Gamble Company is shown below. The problems facing the business model can be dealt with to come up an improved business model canvas. The changes that are needed are primarily in the customer relationship sector, the revenue streams section and the value proposition which affects other sections.

To build the existing business model for Procter & Gamble, the business model canvas has to be used e have different building blocks and we have analyzed them below.

Procter and Gamble offers its customers with daily consumable products. They offer these products at very affordable prices .This is a strategic choice which helps the company to compete with other companies.

Procter & Gamble acquires its resources mainly from the sale of its consumable products and shares bought by the shareholder. These resources help the company in running its daily activities without disruption.

Opportunities

Procter & Gamble has a system process that helps the company perfume its activities and help in storing the company’s information securely and safely. This information is highly sensitive and that’s why the company always comes up with ways to protect it from hackers and thieves.

In the existing situation Procter & Gamble has to come up with a pricing formula. The company first estimates the production costs of the products and decides what price they will be selling each price at. Once the estimate matches with their budget they start the billing process.

For Procter & Gamble to remain innovative, they have to continuously develop and adapt to their business model. According to Osterwalder et al. (2005) business models have several importances to any existing business.

• Business Models help in understanding the business logic of the company.
• Business Models always help the company in analyzing the company’s business logic which help the company compete favorably with its rivals.
• They also help the company to outline its futures through the business model portfolio , innovation and simulation.
• It ensures the company is competing favorably by patenting the business model.It outlines the strengths and how the company can maximize on its weaknesses

Conclusion

The business model is a very important concept in helping companies implement its ideas and visions which help see the company grow. Business Models can also be used as sources of competitive advantages. Bussines providing the same services cannot copy each other’s business models since the process of value creation is different. An organization has to always monitor, evaluate and improve the business model so as to remain on top of its competitors.

References

Ab Rahman, Airini; et al. (2017) Emerging Technologies with Disruptive Effects

Bower ,Joseph L. & Christensen, Clayton M (1995) Catching the Wave,Havard Business Review

Christen, Clayton m. & Overdof, Michael (2000). Meeting the Challenge of Disruptive Change, Havard Business Review

Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., &Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.

Joyce, A., &Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.

Kiel, I. H. (2014). Entrepreneurial marketing.

Meertens, L. O., Iacob, M. E., Nieuwenhuis, L. J., Van Sinderen, M. J., Jonkers, H., &Quartel, D. (2012, March). Mapping the business model canvas to ArchiMate. In Proceedings of the 27th annual ACM symposium on applied computing (pp. 1694-1701). ACM.

Muhtaroglu, F. C. P., Demir, S., Obali, M., &Girgin, C. (2013, October). Business model canvas perspective on big data applications. In Big Data, 2013 IEEE International Conference on (pp. 32-37). IEEE.

Osterwalder A & Pignuer Y,Business Model Generation (2010). John Wiley and Sons

Osterwalder, A., &Pigneur, Y. (2010). Business model canvas. Self-published. Last.

Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., & Ferreira, J. J. P. (2011). Business Model Generation: A handbook for visionaries, game changers and challengers. African journal of business management, 5(7), 8918-8932.

The Procter & Gamble Company Earning Report, Retrieved February . August 14^th ,2016.

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