Innovation of College Students' Entrepreneurial Business Model

Simply put, the business model is how your business or company makes profits and money. The whole system of these profitable services and products is called business model. In other words, the business model is the way for enterprises to carry out business activities, which determines the position of enterprises in the value chain. What I want to tell you below is the innovation of college students' entrepreneurial business model.

There is a well-known Greek myth about the innovation of college students' entrepreneurial business model. Anyone who looks at Medusa, the gorgon, will immediately become a lifeless rock. Poerxiusi, the son of Zeus, knew the secret, so he turned his back, used a bright shield as a mirror, found Medusa, and cut off her head with the help of Athena. The business model is very similar to Medusa's eyes. Many entrepreneurs are entangled in it, killing many excellent projects.

Don't let the business model become a black hole in your mind.

I believe that most people can only do one most important thing at a time. In your mind, over and over again is how to complete this most important thing. It's hard for you to have the energy to think about other things, although other minor things actually need to be thought about.

On the other hand, if a wrong idea becomes the first idea in your mind, it will be a disaster. Being obsessed with business model innovation is an ideological disaster for entrepreneurs. Business model is a relatively new term. Although it first appeared in the 1950s, it has never been so decisive as it is today. Globalization, the development of information technology and the shortening of product life cycle have greatly changed the market competition pattern. Some enterprises and even some industries have declined because of complacency, while those enterprises that have effectively innovated their business models have risen at an unimaginable speed.

Entrepreneurs on the Internet, in particular, use information technology to enable enterprises to reach more consumers at the lowest cost, thus inventing many brand-new business models. Because these business models depend entirely on existing and emerging technologies, business model innovation mostly occurs in the information industry or the Internet industry. During the entrepreneurial upsurge in China, venture capitalists popularized the concept of business model to the general public. What is your financing business model has become a popular mantra. So the first important question that entrepreneurs think about is often what is my business model?

On the surface, everything is understandable, but this is the problem. The reason is simple: the innovation of business model is the result of the hard development of start-ups rather than the starting point. Starting from the finish line is the fundamental misunderstanding.

Customers are God, investors are not.

With the development of information technology, the chain business model has changed from simple buying and selling links to multi-level business logic. Originally, the business relationship was very simple, that is, merchants provided products and services, and consumers paid the bill. However, the progress of society, especially the development of information technology, has lengthened and thickened the business relationship between buyers and sellers. For example, after the intervention of information technology, the simple news service of newspapers has become many links such as user registration (website login), news browsing, content recommendation, advertising promotion and so on. The zero marginal cost brought by information technology promotes the intensification of competition and further lengthens and broadens the commercial chain.

So business model innovation came into being. Attracting and contacting users is free, and value-added services are charged, or a third party or a fourth party is introduced to pay for value-added services. Take news service as an example. Watching the news can attract more readers, so it is free. The rest of the user news (advertising space, content recommendation) was sold to advertisers.

Everyone understands this truth. However, it is easy for entrepreneurs to ignore that the innovation of business model is the result of competition, not designed at the beginning. No matter in China or foreign markets, many successful facts and successful models are telling us this simple truth. Examples are Google in the United States and Alibaba in China. Successful examples should be facebook in the United States and Taobao in China.

The business model is gradually formed, not designed at the beginning. Then, the focus of entrepreneurs should always be to find the real needs of consumers and meet them at the initial stage. This should be the first question that entrepreneurs think of when they wake up in the morning, and other issues are secondary. When you meet the needs of customers and develop on a large scale. When the time comes, if investors ask you how to make a profit, it's not too late to think again. Perhaps some entrepreneurs will ask, how will I spend the day when investors find me? My answer is, this is your specific question, but this is by no means a question of business model!

I can definitely answer that with the in-depth application of the Internet and mobile Internet, people's lifestyles are changing further, and users' consumption patterns are also changing with the consumption value orientation. This is the ultimate source of business model innovation.

Successful characteristics of college students' entrepreneurial business model innovation Any business model [3] is a three-dimensional model composed of customer value, enterprise resources and capabilities, and profit model.

The White Paper on Business Model Innovation written by Harvard University professors mark johnson, Christensen and SAP CEO Henning Kagermann summarizes these three elements as follows:

Customer value proposition refers to the task that an enterprise needs to complete when providing services or products to its customers or consumers at a given price.

Resources and production processes, that is, specific business models that support customer value proposition and profit model.

Profit formula, that is, the process of realizing economic value for shareholders by enterprises.

Accenture, who has been engaged in business model research and consulting for a long time, believes that a successful business model has three characteristics:

First of all, a successful business model should provide unique value. Sometimes this unique value may be a new idea; And more often, it is often a unique combination of products and services. This combination can provide additional value for customers; Either let customers get the same income at a lower price or get more income at the same price.

Second, the business model is difficult to imitate. Enterprises can improve the entry threshold of the industry by establishing their own uniqueness, such as careful care for customers and unparalleled execution ability, so as to ensure that the source of profits is not infringed. For example, the direct selling model (direct selling alone can't be called a business model), everyone knows how it works. Dell is the benchmark of direct selling, but it is difficult to copy Dell's model, because behind direct selling, there are a set of resources and production processes that are extremely difficult to copy.

Third, a successful business model is down-to-earth. Enterprises should live within their means. This seemingly self-evident truth is not easy to do year after year, day after day. In reality, many enterprises, whether traditional or emerging, are not sure where their money comes from, why customers value their products and services, or even how many customers actually do not bring profits to enterprises, but are eroding their income.

The three characteristics proposed by Accenture and the three elements proposed by SAP are mutually confirmed.

Cooperative network: the constituent element of business model innovation

Internal basis: internal value chain and core competence cost.

Products: products or services, channels and customer relationships.

Income: income model

Market: target customers

The concept of characteristic innovation of business model innovation can be traced back to Schumpeter, who proposed that innovation refers to the introduction of new combinations of production factors and production conditions into the production system. There are five forms: developing new products, introducing new production methods, exploring new markets, obtaining new sources of raw materials and adopting new forms of industrial organization. Compared with these traditional types of innovations,

First, business model innovation pays more attention to the behavior of design enterprises from the customer's point of view, and the perspective is more open and outward, paying more attention to and involving the economic factors of enterprises. The starting point of business model innovation is how to fundamentally create added value for customers. Therefore, the starting point of its logical thinking is the customer's demand, and how to effectively meet it according to the customer's demand is obviously different from many technological innovations. A technology can have multiple uses. From the perspective of technological innovation, it is often from the characteristics and functions of technology to see what it can be used to do and find its potential market use. Even if business model innovation involves technology, it is mostly related to economic factors, economic value and feasibility of technology, rather than purely technical characteristics.

Second, business model innovation is more systematic and fundamental, not a single factor change. It often involves many major changes in the business model at the same time, which requires a major strategic adjustment of the enterprise organization and is an integrated innovation. Business model innovation is often accompanied by product, process or organization innovation, otherwise, it may not be enough to constitute business model innovation. If new products or new production processes are developed, it is generally considered as technological innovation. Technological innovation is usually to produce tangible products. But now is the era of service. For example, the proportion of service industry in the United States in 2006 was as high as 68. 1%. For traditional manufacturing enterprises, service is far more important than before. Therefore, business model innovation is often reflected in service innovation, which is manifested in innovative changes in service content, methods and organizational forms.

Thirdly, from the performance point of view, if business model innovation provides brand-new products or services, it may open up a brand-new profitable industry field, even if it provides existing products or services, it will bring more lasting profitability and greater competitive advantage to enterprises. Traditional forms of innovation can improve local internal efficiency and reduce the cost of enterprises, and it is easy to be imitated by other enterprises in a short time. Business model innovation, although also manifested as enterprise efficiency improvement and cost reduction, is more systematic and fundamental, involving multiple factors changing at the same time. Therefore, competitors are more difficult to imitate, which often brings strategic competitive advantage to enterprises, and this advantage can often last for several years.