Definition
Model Types
Planning
Development
Model Template
Customer Pool
Business Strategy
Corporate Strategy
Metrics
Innovation
Nonprofits
Contact Us
Visitor Profile

The Hidden Influence of a Business Model


Business models drive a company's strategy.

I know ... this is not the way you think strategy works. It's not what you've read. It's not what business school taught you.

I know the lessons you've learned because I'm one of those professors that taught them to you.

The lessons that are found in this site aren't drawn from a textbook. They instead come from the experience of running my own businesses for almost 20 years.

As the ideas contained in this site began to form, I started sharing them with executives like you in executive education classes. The ideas and principles found in this site reflect the collective experiences of hundreds of executives.

The core message of this site, the radical idea you'll find nowhere else, is that business models drive a company's strategy.

The model's influence begins the day that management forms the company. The influence is permanent. It persists even after the founders depart.

The influence is exerted even if top management is unaware of the model's presence.

Whether you're evaluating a new business idea or trying to solve your company's strategic problems, the imperative is the same:

Master your model or your model will master you.

This site will teach you everything you need to know to master your business model and, in the process, gain a new and powerful perspective on your company's strategy.

More importantly, you'll know the strategic actions you'll need to pursue over the next five to ten years.

You'll know if you need to diversify. You'll know if you need to expand geographically. You'll know whether or not an acquisition you've been contemplating will "fit" within your existing business.

You will, finally, have that strategic vision you've read about. You'll know what you need to do and you'll know why you need to do it.

A word of advice: the site's coverage is comprehensive. There are a lot of pages, each covering a specific facet of the overall framework. Take your time.

A second word of advice: test every one of this site's ideas against your own experience. Don't accept an idea simply because I say it's so. Don't reject the idea because you can't find it anywhere else.

Let your own experience, tempered by your judgement, determine whether an idea has value to you. If it bears up to your closest consideration, incorporate it into your strategic planning process.

As you use the site's ideas and principles, I'm confident you'll find in them solutions you’ve long sought and opportunities you’ve long wanted to pursue.

Welcome!


Where to begin?

A good place to begin is the planning page. It will give you an overview of how to use a business model orientation to transform your strategy development.

  • At the bottom of the planning page, you'll find a tree diagram with live links to two related pages: guides to strategic planning and business planning. These pages show you, step by step, how to use business models to develop new strategies and evaluate them with unique performance metrics.
You could instead use the development page as a starting point. It presents a site map and guide that you might find useful.

Finally, the table of contents below shows you the site's main topics. You can enter the site simply by clicking on a topic of interest. (NOTE: You can also reach these topics from the buttons on the left side of every page.)
Be sure to look for the Links and Navigation section at the bottom of each page. This section will have a "tree diagram" that contains live links to pages closely related to the one you're looking at.

Again, it's my pleasure to welcome you to my web site.


Harold Star, Ph.D.

P.S. I'm thinking of making some changes to the site's structure and understanding a bit about what brought you here will help me make the redesign more effective.

I'd be grateful if you could, at some point, take the time to complete a brief (10 questions) Visitor Profile Survey. Thank you in advance.




Table of Contents

Business Model Definition
This site's definition of business model is built around the customer. Placing the customer in this central positions results in a customer-based view of strategy.

Types of Business Models
There are four and only four types of business model. All businesses, even those that operate on the Internet, are one or more of these models.

Business Model Planning
Business model planning is the process of strategically managing a company's business models.

Business Model Development
Business model development is suitable both for those looking to extend an existing business and for those considering a new venture.

Business Model Template
Business models are built upon a three-element template. These three elements can be used to examine an existing business or evaluate a proposed one.

The Customer Pool
A business model sells to a pool of customers. Depending upon the model-type, customer pools have distinct inflow and outflow patterns.

Business Strategy
Business strategy manages a business model's customer pool. New customers can be added, current customers can be retained longer, and lost customers can be reacquired.

Corporate Strategy
Corporate strategy designs and manages an enterprise's corporate customer pool.

Business Model Metrics
Business model metrics track both outcomes (profitability) and the processes of managing them.

Business Model Innovation
Innovation can keep a business model competitive. It's also a means of boosting overall profitability.

Nonprofit Business Models
Nonprofit organizations employ the same types of business models as for-profit enterprises. They differ, however, in terms of the customer that's served.

Contact Us
Contact us with questions or comments.

Visitor Profile
A visitor profile will help me redesign this web site to better serve visitors like you.


footer for business model page