Published April 20, 2015 | Version v1

A New ABCD Technique to Analyze Business Models & Concepts

  • 1. Srinivas Institute of Management Studies, Pandeshwara, Mangalore - 575001, India

Description

Various techniques are used to analyze individual characteristics or organizational effectiveness like SWOT analysis, SWOC analysis, PEST analysis etc. These techniques provide an easy and systematic way of identifying various issues affecting a system and provides an opportunity for further development. Whereas these provide a broad-based assessment of individual institutions and systems, it suffers limitations while applying to business context. The success of any business model depends on how a company makes a profit by specifying its position in the value chain. Therefore identifying suitable business models which would enhance customer value and generate revenue is the current challenge for organizations. In this paper, we have proposed a new technique namely ABCD Technique to analyze a business model and to study its effectiveness in providing value to its stakeholders and sustainable profit through expected revenue generation. ABCD is an acronym that stands for Advantages, Benefits, Constraints, and Disadvantages. Application of ABCD analysis results in an organized list of business advantages, benefits, constraints, and disadvantages in a systematic matrix. The entire framework is divided into various issues/area of focus and various business deployment factors affecting the business/concept can be identified and analyzed under each issue by identifying critical effective elements. This analyzing technique being simple gives a guideline to identify and analyze the effectiveness of any business model and new concepts developed.

Files

11._ABCD_Published_Paper_IJMRA-7605.pdf

Files (400.9 kB)

Name Size Download all
md5:209bd870381c8c899c79308c51fc7832
400.9 kB Preview Download

Additional details

References

  • [1] Akao, Y., 1972, “New Product Development and Quality Assurance: System of QFD, Standardization and Quality Control.” Japan Standards Association 25, no. 4, pp 9–14.
  • [2] Ballantyne, J., and Brignall S., (1994), A Taxonomy of Performance Measurement Frameworks, Research Paper 135, Warwick Business School.
  • [3] de Wit, B., and Meyer R., (1998), Strategy, Process, Content and Context, 2nd ed. Thomson Learning, London.
  • [4] Eriksson, H. and Penker, M. (2000), Business Modeling with UML – Business Patterns at Work, John-Wiley & Sons, New York.
  • [5] Gordijn, J. and Akkermans, J. M. (2001), Designing and Evaluating E-Business Models, IEEE Intelligent Systems, 16, 4, pp.11-17.
  • [6] Hedman, J. and Kalling T., (2003), The business model concept: theoretical underpinnings and empirical illustrations. EJIS 12, pp. 49 - 52.
  • [7] Kagermann, H. and Österle H., (2006), Geschäftsmodelle 2010 - Wie CEOs Unternehmen transformieren. Frankfurter Allgemeine Buch, pp 276.
  • [8] Kaplan, R., Norton, D., 1992, The Balanced Scorecard - Measures That Drive Performance. Harvard Business Review Jan-Feb, pp 71-79.
  • [9] Lee S. F., and Ko, A. S. O., (2000"a") “Building Balanced Scorecard with SWOT Analysis, and Implementing 'Sun Tzu’s The Art of Business Management Strategies' on QFD Methodology.” Managerial Auditing Journal 15, no. 1–2 pp 68–76.
  • [10] Lee S. F., Lo, K. K., Leung R. F., and Ko A. S. O., (2000 "b"), “Strategy Formulation Framework for Vocational Education: Integrating SWOT Analysis, Balanced Scorecard, QFD Methodology and MBNQA Education Criteria.” Managerial Auditing Journal 15, no. 8 pp 407–423.
  • [11] Magretta, J. (2002), Why business models matter. Harvard Business Review 2002, pp 33-36.
  • [12] Magretta, J. (2003). What management is - How it works and why it's everyone's business. Profile Books, pp 44.
  • [13] Müller-Stewens, G. and C. Lechner (2005). Strategisches Management - Wiestrategische Initiativenzum Wandelführen, Schä_er-Pöschel, pp 410.
  • [14] Mazur, G. 1992, “Voice of the Customer Table: A Tutorial.” Proceedings of the Fourth Symposium on Quality Function Deployment, Novi, Michigan.
  • [15] Osterwalder, A. and Pigneur, Y. 2002, An e-Business Model Ontology for Modeling e-Business, In the Proceedings of the 15th Electronic Commerce Conference – e-Reality: Constructing the e-Economy, Bled, Slovenia, June 17 – 19, pp 75-91.
  • [16] Porter, M. E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
  • [17] Sterman, J. (2000). Business Dynamics. Wiley, pp 22.
  • [18] Warren, K. (2002). Competitive Strategy Dynamics. Wiley, pp 20.
  • [19] Weill, P., Vitale, M.R. (2001) Place to Space: Migrating to e-Business Models, Harvard Business School Press, Boston.
  • [20] Wu, B. (1992), Manufacturing Systems Design and Analysis, Chapman and Hall, London.