By: Dr. Willy A. Sussland, Author, lecturer, advisor to senior management

 

There is something mesmerizing about the word strategy. General von Clausewitz cautioned “strategic plans are valid until the first encounter with the enemy”. Since, globalization, i.e. the systemic interactivity, has led competent managers to look beyond the mission that is articulated in business-policy, and to focus also on the means, the men and their mind-set, and the management.

These 5 <m> integrate the business model, and, as quoted by one of the models shown on Wikipedia, “the real power of the business-model is when each element works in concert”.

Internet Business Models

Wikipedia shows a vast array of different models of the business-models that have been developed by academics and consultants. Most of them – I find – are exceedingly complicated. What is really surprising is that I detected only two models that put business-value in the center of their presentation. By Jove, the main mission of the management is to continue to create business-value in the enterprise at least competitively or to face extinction!

In my last book "The Innovative Enterprise - How to Transform a Traditional Organization in an Innovative Networking Enterprise" I focus on the principles and practices needed to establish and to run an innovative company. Obviously, the advocated management system relies on an innovative business-model, which I will describe hereafter.

Systemic Innovation: 7 Areas

The principle of my model is that it is very simple, but that it gets more and more detailed. However, as stated earlier, all its elements that cover the 5 <m> are interactive.

In a nutshell, business-value is created/destroyed by teams working essentially on the basis of project-by–project. Thusly, business-value is created/destroyed on the 5 strategic resources of the enterprise, namely the Corporate Capital, the Talent Capital, the Market Capital, the Life and Time Cycles, and the Financial Capital. Some of these strategic resources work inside/out, others outside/in. All the aforementioned strategic resources feature 5 resource-components. This enables the life-forces of the organization to zoom-in on the creation of business-value.

The strategic resources are put into gear by management processes. At the basis of the construct of the management processes I put (1) the strategic deployment, (2) the organizational deployment, and (3) the <Returns on Total Resources>, a well balanced performance evaluation system that duly takes into account the fact that 4 out of the 5 strategic resources are essentially intangible resources.

The <Model of the Two Rings> is the framework that I have developed to integrate the 3 aforementioned pillars of the management processes.

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