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Emphasizing the sensible facet of expertise and Innovation administration, this publication contains major contributions to the perform of strategizing, administration of competences and innovation management. While the findings are research-based, each contribution has 'managerial implications' which conceal the instructed implementation.
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Financial aspects: What the revenue model is, cost structure, and the BM’s sustainability are. In a second step these main areas have been split into nine BM building blocks which reflect a synthesis of the BM literature reviewed. 19. 20. 19. On the other side, an additional four elements have been built into the BM: The first element “competition” visualizes the company in its competitive environment. Next is “Technologies”: This element allows expressing essential core competences of strategic significance for a technology driven company.
In cases of high discrepancies a risk/return analysis may reveal limits of business risks which can responsibly be taken. The various criteria can be used in order to perform a so-called Value Benefit Analysis (VBA). ” The elaboration of a VBA is a further example of a problem to be solved for which a qualified group work is best suited in order to accomplish the indispensible status of intersubjectivity. A usual approach to answer the financial question follows the discounted “Free Cash Flow Method” which delivers so-called Net Present Values (NPV) as a widely used measure of financial attractiveness of projects of any kind.
These two simple methods will enhance the discussions when performing this level as all involved people will have a more concrete image of the products in discussion. Further aspects to include into the discussion might be: the choice about fundamental product strategy decisions such as “high-end” or “lowend” product variants, product family concepts, and platform strategies, the deadlines for prototypes, timelines for market introductions and for new product generation releases, etc. In example, the three products “Green Flight,” “Easy Flight,” and “Customized Flight” have been adapted from the IA to the BRM as is.