Case Study: Analysis of Business Models and Their Innovations

AbstractThe business model shows the operation of the enterprise as a collection of related resources and processes which interacts with its environment. Result of the company has to satisfy the customer and the business owner. Analysis of business models explains how they work in real business practice and identify their basic features. Another objective of the analysis is finding innovation business models which are then used to identify the innovation space. The analysis contributes to a deeper and wider knowledge of how the conventional and extraordinary business models work as well.Keywords: Business model, visualization of business model, content of real-life models, innovations of business models.IntroductionThe business model is a conceptual and economic notion of how the enterprise works and how it makes money. It is simplistic but principal image of a company that contains resources and processes, their conversion into value for the customer and way of appropriation of a part of produced value. Joan Magretta4 regards the business model in its deepest nature as a story that explains how a company works. Good business model according its view answers to the old question of the entrepreneur: Who is the customer? What does a customer consider valuable and useful? How to make money in the given business? What is the economic logic that explains how to bring value to customers (benefit) at a reasonable cost?Business model expresses the logic and provides data and other evidence to demonstrate how the business creates and provides value (benefit) to the customer. It also shows the structure of revenues, costs and profits associated with how the enterprise provides this value. Business model essentially embodies organizational and financial interpretation of business. However, it is more conceptual than financial picture of the business. Good business model delivers the value offer that is convincing and compelling for the customer that achieves competitive cost and risk structure and enables the realization of significant value.Theory of business modelsDrivers of growing interest in business models have been the emergence of the knowledge economy, the expansion of the Internet and electronic commerce, outsourcing and off-shoring of many business activities and the global restructuring of financial services. Way how companies at this time are earning money differs from industrial era, for which important volume of production was important and realization of value was relatively simple. An enterprise simply puts its technology and intellectual property in a product that is sold as a single item or a more complex whole. Their contribution to the development of this topic driving forces such as globalization, deregulation and technological progress (and these are just some) affect deeply to the rules and conventions of competing. The fastest growing companies in rapidly changing environment are those that have used the structural changes to upgrade their business models to compete otherwise and innovatively.Concept contrary to the definition describes the business model in more detail, structured and purposefully. The very concept model as a descriptor of some fact or desired state takes different forms and meanings. The model is reduced and in some extent simplified picture of reality (replica in scale), model is a template to be copied and displayed with some degree of fidelity or idealization (imitation). Model is a visualization of the phenomenon, system or object with its structure and functionality, this model is trying to capture the essence of the operation, thus the source and procedural aspect of reality (body function), this way understood model is suitable for experimentation. The model is also a tool to demonstrate and to exhibit the functionality as an instruction and recipe how to implement certain processes and phenomena.Business model will show in particular all relevant inhouse and out-plant processes so that they can be better understood in terms of efficiency and effectiveness of use and it is a tool for experimenting with system of resources and activities to increase the performance of the company. …