Business Design Construct

Business Design Construct:
Business design is the flip-side of strategy. It specfies what the business will be as a result of the strategy. Creative business design calls for a strategy to put it in place.

Business Model Derivation:
A business organizaiton is a complex social system. The business model aspects of purpose, function, process, and structure come from that model. These aspects are four ways of viewing the elements of the business.

Business Design Constuct:
The competitive advantage factors is a fifth aspect which views the integration of the business elements. The synergistic integration of these elements is the source of competitive advantage.

Process Stage Outputs:
Each process stage creates a state of the business model for use in successive stages. The same model, or design constuct, is used in all cases for consistency and comparability.

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Business Design for Strategic Advantage

The business design construct is one of the three elements of the framework for strategic management competency. The business design construct is also called the generic business model. The business model identifies the elements of a business organized by the four aspects of a complex social system; purpose/environment, function (output), process, and structure. The competitive advantage factors reflected in the model are largely the unique configurations of the business model elements that provide a competitive advantage.

Consistent Construct Throughout the Process

The same generic business model construct is used throughout the four stages of the strategic management process, while the level of detail in each state of the model varies by stage and need. Each stage of the process utilizes particular states of the business model.

Competing with Business Design Strength

The strength of a business design comes from the interrelationships, or integrations, of the elements. A primary goal of strategy is to design a business whose unique configuration of the elements provides a high value producing solution that is difficult to imitate.

Guiding Understanding and Design

The business model structure guides the iterative inquiry used to understand the business organization in the generating wisdom stage of the strategic management process. It also guides the iterative inquiry used to design the business organization in the creating art stage of the strategic management process.

Process