‘A business is incomplete without a business model.’ Simple, yet one of the unique business factors that differentiate one business from another is its business model. In this era of a service based economy, the drive to lower costs and increase efficiency are at their peak. I believe the only differentiating factor between businesses is ‘How differently can we do the same things, to retain quality and efficiency at lower costs. A business model is designed to link the chain of activities that have to occur for a business outcome to be accomplished.
To stay ahead of the rest, organizations depend on human, technology, capital, infrastructure and other means that help organizations ‘run the show.’ Any item or human of economic value that an organization holds is considered an ‘Asset.’ Having said that, asset is not always visible. Meaning, Goodwill is a valuable financial asset that companies own that is not directly visible. Another example of an asset that is not visible is ‘Management.’ ‘People come and go, Organizations remain.’ True. However, how close the organization is to its core vision and its purpose for existence, depends on the kind of people and the culture these people develop. Having the right mix of people and a deep instilled vision, across all the levels of an organization enables the organization to stay in line to its core vision. The closer we stay to the core vision, the faster we get there. ITIL classifies all such assets into two major categories, being: Resources and Capabilities.