Innovation and Business Operations Development

Question: Discuss about the Innovation and Business Operations Development. Answer: Introduction Business operations take place in a competitive and ever-changing environment that requires commitment and persistence to meet the set goals. Every business strives to place itself strategically in the market to improve its customer base and maximize profit. The success of a business enterprise depends on its ability to perform well despite changes in the economic and market conditions. Consequently, there must be a plan of operations that a company engages in and a structure that gives guidelines on sources of capital, product, and service delivery as well as the needs of the customer. It is necessary for business owners to understand how to design their operations for the enterprise to achieve sustainable growth and remain relevant in the competitive market. This paper entails a discussion of the business models that businesses can employ to make a working system for competitive advantage in the present and the in future. A business model is a representation of the operations of a business aimed at creating value for customers and ensuring that more customers are attracted to the company. Through the methods designed to increase revenue from sales and other subscriptions, a business model offers opportunities for customers to purchase from the enterprise. The success of a company depends on the ability of the business model to provide a flexible structure that is favorable to the company and all other partners. Investors, customers, and suppliers to the company must hold positive perception and confidence in the operations of the company ( Teece, 2017). Business models are termed as business systems when a business firm plans on how to efficiently deliver products and services to prospective customers through a deliberate and sustained production and delivery system. By having a system whose operations affect the delivery of services, then it is a business system and endeavors to control activities of the companys partners organizes the internal working system and separates duties between the firm and its partners. Business systems differentiate the company from competitors and place it in a better position to learn from the environment (Ebel, Brestchneider Leimeister, 2016). Challenges posed by the ever-changing economic and market conditions make it necessary for businesses to adopt business systems that have the ability to provide solutions to the problems. First, a business model designed as a system sets the standards for the activities, resources, and capabilities within and outside the company to help in performing tasks (Zott Amit, 2010). Decisions on the roles to be played by partners and the company provides a framework for co-ordination. Also, business systems give companies the potential to perform by outlining the types of expenses to incur, prices, prospective customers, and the competitors of the enterprise. Moreover, through the adoption of a flexible system, a business can remain relevant despite challenging economic conditions. Business systems place the company in a position to compete in future by making the company flexible enough to study changes in the market and implement policies that improve its operations. Business systems also provide a platform for learning to the organization by outlining the workflow in the company on what activities should be done to meet customer expectations. Information flow from both inside and outside the organization assists it to learn about existing market demands and technological improvements for competitive advantage. Business systems organize the internal working system of a company by defining different operational functions to be performed by various departments which reduce duplication of duties and emphasizes the commitment of the company towards creating value with customers (Wu Zhao, 2014). Businesses can work with other business organizations to support the operations and decisions they make to foster performance of the business entities. Companies network by communicating, coordinating and collaborating to create small-world structures that respond to changes in the working environment (Adamik, 2013). Through business systems, information and knowledge are shared to develop new products and services as well as new dynamic processes that help the companies to meet customer needs. Using similar systems enhances the partnership of firms to comply with specific regulations that govern their operations. Innovation is the process of discovering ideas and developing them into use for the purpose of increasing efficiency to make a profit (Silva, Styles Lages, 2017). Innovative ideas are triggered by customer demands and organizational goals that the organization has to meet. Systems of operation are a platform that offers challenges to organizations and puts them under pressure to meet goals. Learning from the activities in the system provides a chance for people to come up with new policies and procedures that create a new order of operations and help to open up for new ideas. The innovation process starts with the generation of ideas that stimulated by the companys vision, challenging demands from customers and set goals that need to be achieved. The ideas are meant to open up the boundaries of the organization by going an extra mile to achieve the set goals and meeting demands. The involvement of various workers in the business system allows for brainstorming and generation of a variety of ideas for adoption and implementation. Using a business model as a system provides a description of the future process by laying a strategy to change the existing processes and creating new products and services. Improvement of goods and services is made by examining the estimates of costs, benefits, risks and the necessary support needed to adopt a new way of doing things in case of external pressure ( Silve, Styles Lages, 2017). Itami and Nishino described business models as a combination of a business system and a profit model and emphasized that a business system is what produces and delivers the products and services of a company and determines the operations and behaviors of its partners (2010). Illustrations of the components of a business model by Itami and Nishino provide a clear understanding of how a company operates. Diagram: Business Model by Itami Nishino. Itami and Nishino (2010) highlighted an example of Google to illustrate how a business model is a combination of the profit model and business system. Google designed its profit model in such a way that advertisers on its search engines pay for selling products on Google but not the users of Google services. Advertisers need assurance that their advertising messages will reach more people, a reason why Google increases its search services to ensure advertisers make contact with their prospective customers who use different Google search services. A combination of in-house software and search engines on Google makes up the Google business system. Users get attracted to Google because it is quick and handles large volumes of information at a time. A business system provides information on the use of Google services and monitors changes in the use of its services to plan on how to provide services which users will value in future ( Itami Nishino, 2010). Business models should consist of both the profit model and the business system so that a design of how to make a profit is made based on the operations that are put in place by the business system (Zott Amit, 2010). With a flexible and working business system, a company achieves both values to customers and profit. It is necessary for companies to structure their business model as a system model so that the system favors its operations and reinforces its competitive advantage. References Adamik, A. (2013). The role of managers in business partnering creating. Organization And Management, 2013(3 (156). https://dx.doi.org/10.2478/oam-2013-0026 Ebel, P., Bretshneider, U., Leimeister, J., (2016). 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