1. A business model for the new economy.
- Author
-
Walters, David
- Subjects
CORPORATIONS ,ECONOMICS ,RATE of return ,CAPITAL intensity ,SUPPLY chains - Abstract
The new economy brought with it a new approach to designing business models. Not too many years ago the familiar organisation structure was dominated by a traditional view of managers that was based on asset ownership and vertical organisation structures. The prevalent view was that ownership enhanced control and profit margins. More recently flexibility, co-operation and collaboration have become important features for success. The success of organisations such as Dell and the move by some of the largest corporations in the world towards a model within which assets are managed rather than owned has led to significant changes not only in structure, but also in attitudes and managerial behaviour. As a result the "new business model" has five common attributes, the firm should: be cash flow driven; focus on return on investment; function with distributed (leveraged) assets or low capital intensity; do so with a single minded view on core assets and distinctive capabilities; and develop competitive advantage by relevant positioning within its industry value chain. Reviews these developments, using the Australian wine industry as an example of the new business model [ABSTRACT FROM AUTHOR]
- Published
- 2004
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