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Site Home arrow Articles arrow Business Model arrow What is this "Business Model Home" all about?
What is this "Business Model Home" all about? Print E-mail
Written by Administrator   

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At this website, we are presenting you with an overview of two different perspectives:

1)  Business "Model Home"
                     and...
2)  "Business Model" Home

In the first perspective, Business "Model Home," we are applying the traditional definition of "Model Home" to a business, BUT from a website vantage point.  What is meant by this is, this website will show you how selected software is used for a given purpose.  Whether or not a particular software type is used on this website, check the 'Downloads' link in the menu to find selected software for your given purpose.  Software for both websites and desktop computers are listed.

In the second perspective, "Business Model" Home, we will either demonstrate, discuss, and/or provide resources for the application of the 'business model' approach, again, intergrating the Internet and tying it to '21st century business methods.'

To begin this overview, when assessing which 'business model' to apply to your particular business, it boils down to your ultimate objective and the structure and operation you need to apply to meet that objective and make your business successful.  You may discover that combining certain elements of various business models or collaborating with others is better suited to establish your framework of success.  On the flipside, circumventing this step can become the determining factor between maximizing profits or even being able to sustain your business beyond a certain point in the future.

Although termed '21st century business methods,' these methods were actually created and applied in the 20th century.  Increasingly, businesses are integrating the Internet into their infrastructure more purposefully and often to provide 24/7 sales ability, optimize labor, increase service quality, increase capacity at a lower relative cost, provide online training, and so on. 

With respect to labor optimization, this often results in labor reduction or redistribution (the 'new norm').  By rights, it is really no different from utilizing robotics on the production floor or adding self-checkout machines in the grocery store to replace employees and lower the associated costs.  This allows businesses to do more with less.

What sets Internet technology integration apart from, say, robotics, is that robotics is considered a localized technological application of labor, quality and productivity optimization.  The Internet is considered a decentralized application that can also provide a localized solution.  The power of each is controlled by both its hardware and software capabilities.  Each has their purpose and each contributes to profitization in their own way.

One incentive for business owners to employ aspects of 'laborless' business models is, if one-half of an employee's salary and benefits can be saved by adding robotics or incorporating the Internet while simultaneously improving quality and productivity, and broadening their target market, most businesses will go for it.  How could they not?  You will find many will take the savings and reinvest it back into the business to further their growth.

You will also find more businesses that are considered neighborhood or local will begin utilizing the Internet to increase their target market to statewide or even global.  This can happen sometimes without adding additional employees or by adding an absolute minimum number of employees or by 'outsourcing.'  If the decision is to hire additional employees, having some employees 'telecommute' may help businesses keep their overhead to a minimum.

As you visit various websites, you will undoubtedly notice functionality in addition to electronic advertising.  You will notice that those businesses are obviously using their website to leverage their workforce and to implement other optimization practices.  For other Internet-based optimization functions used by that business, it may not be obvious nor accessible for public viewing.  There is a good chance that it involved employee downsizing or reassignment.

On a geographical basis, try to guestimate the number of employees and costs it would take to obtain equivalent functional performance the website is providing on an around-the-clock basis.  Include call center duties, technical support, product sales and service coverage throughout the target market covered by that website, and more.  When performing the time and cost analysis, do not forget to factor in 'sick days' and 'vacation days' websites take annually (chuckle).

When reviewing an organization's annual report, the downsizing 'writing on the wall' may exist in the form of an announcement regarding increased automation and/or integration of the Internet as part of that effort.  The ironic aspect of this is, without manufacturing floor personnel always realizing it, this automation and ultimate downsizing is sometimes a direct result of their request to management to e.g. add a bag dumper to reduce back problems.  This request may lead to automating that process, thus eliminating jobs. 

But, in this same annual report, you may find that the automation being added as a result of requests made by these floor personnel may actually result in the hiring of additional employees due to new expansion capacity achieved.  If it is your annual report, it is suggested that your employees know the company's plans in advance so no one jumps to an erroneous conclusion.

Specialty areas, such as engineering, are often times expanded even during downsizing.  Take a look at each business individually and evaluate this for yourself.  And for those employees who are downsized, consider becoming a business owner.  Then as a business owner, you too must continually implement ways to reduce and control your costs.  Again, the Internet is a powerful and effective medium to make that possible.

Create your business model and strategy first then procure the software (web-based, etc.) and other resources that will be needed to support that business framework.  When you invest the time it actually takes upfront to create a well-designed plan, your process costs and headaches have a much greater probability of being controlled and contained.

Remember, have fun and...enjoy your profitability!


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