2 BUSINESS <strong>MODEL</strong>S Graph 7: The balanced scorecard model That way the balanced scorecard can be used for reporting, planning/budgeting, for agreement on objectives and incentive systems, for corporate communication systems and as an agenda of management meetings. It assures that the targeted business model is really met by providing a detailed change agenda that can be implemented and controlled throughout all parts of an organization. In the graph below you find an example of how such a balanced scorecard could look like: Graph 8: Practical example of a balanced scorecard 25
KNOWLEDGE FOR BUSINESS IN BORDER REGIONS 2.7 Practical Tips When depicting business models, it has proven very successful to start with the strategic core and then systematically work yourself through each „C-component“of the business model. Once you have all your inputs together, it should be easy to determine the most important factors, bring them together and depict them graphically on one A-4 page. Try not to exceed this range. Well designed business model can be easily understood also by outsiders and fit on one page only. Business modeling and business model innovation is not a one-time project, but an ongoing, challenging process. Let the following quote from Tim O’Reilly, CEO of O’Reilly publishing house be an inspiration and motivation to you: “There’s not a single business model… There are really a lot of opportunities and a lot of options and we just have to discover all of them.” Tim O’Reilly 2.8 Graphs Graph 1: The 7-C Model to describe business models Graph 2: Defining the CIA – Competitive Innovation Advantage Graph 3: The Value Chain within an Graph 4: The Ansoff-Matrix Graph 5: The business model of Hugo Boss Graph 6: Deriving a successful competitive strategy Graph 7: The balanced scorecard model Graph 8: Practical example of a balanced scorecard 2.9 References and further readings • Afuah, A.: Business Models. A Strategic Management Approach, Mcgraw-Hill Higher Education, 2003. • Grant, R.M.: Contemporary Strategy Analysis, Blackwell Publishers, 6th edition, 2007. • Hamel, G.: Leading the Revolution, Harvard Business School Press, Boston, 2000. • Homburg, C./ Krohmer, H.: Marketingmanagement. Strategie – Instrumente- Umsetzung – Unternehmensführung, 2nd edition, Gabler, Wiesbaden 2007. • Johnson, G./Scholes, K./Whittington, R.: Exploring Corporate Strategy. Text & Cases, 8th edition, Prentice Hall, Pearson Education, Harlow 2008. • Little, A.D.: Innovation als Führungsaufgabe, Frankfurt 1988. • Organizational Dynamics, Vol. 28, No. 4, Published by Elsevier Science Inc., 2000. • Pearce/Robinson: Strategic Management. Formulation, Implementation, Control, 10th edition, McGraw-Hill International Edition, 2007. • Porter, M.: Competitive Advantage. Creating and sustaining superior performance, The Free Press, New York et al. 1998. • Renker, C.: Marketing im Mittelstand, Erich Schmidt Verlag, Berlin 2009. • Schein, E.: Organisational Culture and Leadership, 2nd edition, Jossey-Bass, 1997. • Scherer, H: Jenseits vom Mittelmaß. Unternehmenserfolg im Verdrängungswettbewerb, Gabal Verlag, Offenbach 2009. • Trommsdorff, V./ Steinhoff, F. : Innovationsmarketing, Vahlen, München, 2007. • Vahs, D./ Schäfer-Kunz, J.: Einführung in die Betriebswirtschaftslehre, 5. Auflage, Schäffer Poeschel Verlag, Stuttgart 2007. • Magretta, J.: Why Business Models Matter, Harvard Business Review, May 2002. • Osterwalder, A./Pigneur, Y.: Business Model Generation, June 2009. • Kaplan, R.S./Norton, D.P.: The Balanced Scorecard: Measures That Drive Performance, Harvard Business Review, 1992. • Kaplan, R.S./Norton, D.P.: Measuring the Strategic Readiness of Intangible Assets, Harvard Business Review, Feb. 2004. • http://www.quickmba.com/strategy/matrix/ansoff, 17th April 2010 • http://www.mindtools.com/pages/article/newSTR_90.htm, 17th April 2010 26
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