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BOOK TITLE: Business Models.
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1
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Introduction
to Business Models
Organizational
models and metaphors shape our perceptions, which in turn
guide our actions. Diverse new models proliferate as the pace
of change continues to accelerate. Yet some believe that our
social institutions, embodied in antiquated models of organization,
are failing in fundamental ways. The stakes are exceedingly
high at the beginning of the new millennium. |
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2
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What
are Business Models
This
chapter lays the definitional foundation for the rest of the
book. Model, organization, organizational model, business
model, and organizational metaphor are each defined. Theoretical
features of organizational structure - formalization, complexity,
and centralization - are then examined. Two generic models
are introduced - mechanistic and organic - that represent
the range of twentieth-century thinking on organizational
models. The chapter concludes with key learning points.
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3
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Evolution
of Business Models
Hierarchical
models of organization are several millennia old. Religious
entities served as primary organizational models for many
centuries. During the twentieth century the trend was from
mechanistic, closed-system, bureaucratic models, toward organic,
open-system, autocratic models. There has been a flowering
of organizational models and metaphors in recent decades.
Key models and metaphors are introduced. |
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4
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E-Dimension:
Business Models
The
Internet is having a profound impact on organizational models,
and our very conceptions of what constitutes an "organization."
Business models have become the hot e-business buzzword, and
a sampling of those models is presented. Business webs - a
rapidly-emerging model - facilitate and expedite the disaggregation
of vertically-integrated organizational structures. Not long
ago, "incubator" models were all the rage - until
the tech markets toppled. The future of incubators is explored,
featuring the case of a public/private partnership in Japan.
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5
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The
Global Dimension
This chapter addresses the impact of globalization on organizational
models. Traditional approaches to globalization are embodied
in four models: global, international, multinational/multidomestic,
and transnational. The rapid development of network communication
technologies gives rise to a fifth possibility: the virtual
transnational. ASEA Brown Boveri is in the process of transforming
itself into a virtual transnational. Finally, the impact of
national cultures on organizational models is explored.
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6
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The
State of the Art
The
state of the art in human organizing is complex and multi-faceted.
This chapter begins with an examination of the model that
everyone loves to hate - bureaucracy - and its relevance,
if any, to today's models. Next, the rapid escalation of transorganizational
collaboration is explored, along with structural models for
collaboration. Finally, the implications of "chaordic"
organizational models - the most radical yet natural of approaches
to human organizing -are discussed. |
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7
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Business
Models In Practice
Three
exemplary cases are presented that illustrate the state of
the art in business and organizational models. First, the
story of Bowstreet, Inc. highlights the transformation of
an organization into a business web, and the rapid development
of technology that enables that. Second, The Thread, Inc.
illustrates the dramatic possibilities of the implementation
of business webs in the apparel industry. Finally, worker
democracies - exemplified by the Mondragon co-operatives,
the world's most successful incubator of start-up enterprises
- offer a vital alternative to the corporate shareholder model.
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8
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Key
Concepts and Thinkers
This
chapter provides additional information on key thinkers in
the area of organizational and business models, brief descriptions
of more organizational models and metaphors, and descriptions
of several related concepts, including downsizing, business
process re-engineering, and outsourcing. |
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9
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Resources
Today
the Web provides ready access to an increasing variety of
high quality information and resources related to business
and organizational models. This chapter provides descriptions
of and links to Web-based knowledge portals, cases, interviews,
online courses, white papers, and additional information on
a selection of organizational models. |
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10
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Ten
Steps to Making Business Models Work
Should
you change your organizational model? Possibly. But before
you do, carefully consider the need for change, the risks
inherent in the change process, the psychological nature of
organizational models, and ways to manage the change process
successfully. |
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