BUSINESS MODELS

Explore and explain why the modern Project Manager needs to comprehend Business Models?

Explore and explain why the modern Project Manager needs to comprehend Business Models?

Introduction

Few decades ago project managers has taken modified and modern form. At the beginning of the year 1960's, organizations and businesses started to have a look on the advantages and assistance they can get by proper organization of work throughout their projects. Having a view of project-centric, the project managers further modified the concept of organizations and started to understand the importance of integration and application of business models in their day to day operations. Project managers began to realize the need for collaboration among employees for the completion of their tasks associated with long or short term projects and integration across several departments. This concept of manager's looks business as human implies for which a business tend to prosper and flourish. All the functional parts of the business need to work in synergy in order to obtain goals of the project. Some of the business models have evolved during the period of time and started to take its basis in the modern forms of business models (Teece, 2007, pp.1319-1350). All the traditional and modern business models which have evolved over the time share the same fundamental structure; according to which the project managers are required to manages the projects, bring the while team in collaboration and make sure that the communication and integration of the overall workflow is done horizontally throughout several departments.

Identify the Value Proposition

The value proposition is the unique mix of products, services, benefits and values added that the organization offers to its customers who make a different offer on the market. Value propositions to customers represent attributes that companies provide through their products and services to create loyalty and satisfaction in selected customer segments (Shafer, 2005, pp. 199-207). The value proposition is a key concept to identify the internal processes of the business, establishing the inductors and indicators and the necessary infrastructure that will give life to strategy. A value proposition depends on three dimensions:

The Attributes of the Products And Or Services: It is related to the functionality, convenience, quality and price.

The Relationship with Customers: Includes customer response, delivery times and feeling the customer shopping experience.

Image and Prestige: Reflects the intangible factors that attract a customer to a company, allowing defining itself proactively to customers.

There are two possibilities when choosing the value proposition: choose the value proposition that the company wants to be recognized and then identify the customer segment to which this proposal will be a differentiator or first select the customer segment and then establish a value proposition. A distributor of electrical products generally has two types of customers, the retailer and the consumer; it is likely that the proposals are different because the ends can be radically different (Magretta, 2002). However today it is considered that all the strategies depends on selected customer segments; in addition, a company can excel in any of the ...