Business as a Platform of Innovation

Question 3.2: In what sense is a business model a “platform for innovation”? How might an entrepreneur use this framework to be more innovative in designing a company? (50 marks)

Business model is important to the business. It is because it will make all the concept that business have become truth and alive. Business model will direct the business activity in order to make sure that they follow a route that they strategies in the early of their establishment. With this help from the business model, it will lead business to deliver all its promises to their customer.

Business model is not only direct the activity and provide a guideline for the business in doing their activity but business plan model also will serve other purpose to the business. The other purpose that serve by the business model is:

• It will ensure entrepreneur to develop a logical and appropriate consistent approach to the design and operation of new venture

• Serve as a method for entrepreneur to transform all the idea that they have to their employee, so that employee know what they need to do

• Identify the key variable in business that can be combine to result something unique in the industry and to create innovation in the industry

• Help the business to design and guide their business operation, what they should do and what they should not do in order to deliver the promises that business made to the customer

• It also serve as a mapping plan for the business, here business can look and refer back to it when there is necessary modification that need to do in the business.

So here it is confirm business model will be act as a platform of innovation. It is because from the early stage of business development, the “innovation” element is part of the plan. Business will try their best and will look into many aspect in their business element that can be improve and innovate to stay competitive in the market that they enter. The element that they may look into such as factor that relate to how business will create the value in market, for whom business create the value, internal capability that business poses in business, how company differentiate themselves from others in the market, how will business make money and business time, scope and size ambition. All of this element is the core component of business model which create the model itself.

Business model is important to the business because it cover the key aspect and future decision that will be made in the business to make sure that it will lead to the sustainability of the business. It is because the business model will have all the strategy and approach that the business will implement in their business to create a unique and lead to create a distinct