Why a business model alone does not guarantee a success
A good business is always based on a good concept. We shape a concept into a plan and then realize that plan into execution. Out of the three: concept, plan, and execution, which one do you think a common business model framework is intended for? Most likely, it’s a plan since a business model by definition is a kind of plan where the core business components are chosen and then organized. However, to make a business successful, all three domains must be in harmony:
- a good business concept
- a plan to shape a concept
- an execution to realize a plan
That is Balanced Integrity. A business plan only shapes as existing concept, it does not beautify an unattractive concept nor does it improve a lousy execution capability. As an example, let’s compare a good business concept to a gemstone. The actual gemstone is the business concept, the jewelry design is the business plan, and the craftsmanship of the gemstone is the business execution.
Jewelry requires that gemstones go through a design and craft process; similarly, the success of any business requires concept and execution to be seamlessly integrated with a solid business plan.
What about the common practices in the industry? Shouldn’t there be existing models or methods to help integrate these three domains?
Companies typically employ a business proposal to brief a business concept. They then devise a bulky business plan that focuses on detailed execution and financial projections, where the execution is played by ear with no particular set of tools put in place. In this scenario, the business concept, plan and execution operate in silo and lack due efficiency and integrity.
Why an insightful business model matters
While existing business methodologies help to mitigate the aforementioned structural issues, they still have room for improvement in terms of consolidating the business concept, plan and execution. Granted, there are experts that are capable of combining various methodologies geared towards different business contexts, however, this is not a method of convenience for everybody. This shortcoming becomes more obvious when we take a comparative analysis across some of the well-known methodologies that deal with innovation.
Business Model Zen does not address all business problems. However, its core value lies in consolidating concepts, plans and execution of a business into a single logical canvas, thus restoring the organic links among them.
Nonetheless, unique virtues of existing methodologies will hold effective, since their legacies also laid the conceptual foundation for Business Model Zen. Accordingly, linking them with the due reciprocity and synergy came to be of great interest.