In very few words how basic elements of business are organised. An analogy with the parts of a bicycle wheel. for more please visit http://www.scribd.com/doc/74474599

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Business in a Shoe String Bicycle Wheel
The organisation of the Business
With the intention of depicting a
high view of the organisation of the
business, I took a bicycle wheel to make
an analogy of how the most important
subjects in business co-exist and what is
their broad contribution to the
companies’ existence.
Where is the Business model?
Where is the business model?

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With no more detail:
Businesses are complex. They live in an
environment formed by the conjunction of
different complex aspects of life.
Dynamic external and internal forces shape
organisations.
Uncertainty and risk are perpetual.
We have to predict it. And to face it.
Where is the business model?

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First Step: Manage what you can.
Internal concerns of
Culture
all companies:
Strategy
Execution
Align your resources and walk the field.
Where is the business model?

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Your organisation has to roll on. To move. To spin.
So how should it go?
Where is the business model?

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Smoothly! Just like ...
Where is the business model?

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If comparing the organisation of a business with a bicycle wheel here is the relationship
Parts of a bicycle’s wheel
Rubber – Commercial activities
This is the point of contact with
the surface, and is what keeps you
on track and gives you traction. –
In companies, these are the
commercial activities. No sales,
no fuel to go on and the deeper
your understanding of the market
needs, the better you do.
Where is the business model?

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Rim – Corporate infrastructure:
This is what supports the activity. It
should keep going while receiving
impacts from the road. This is the
corporate infrastructure. Technology,
assets, and finance.
Spokes – The Culture
The spokes support and give shape
to the Rim. Definitively should be the
culture. No people, no need of
infrastructure. Depending the quality
of your people and the culture they
live, the results your infrastructure
yields
Where is the business model?

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Valve – Strategy
The valve is very important. It’s the way in for the air to get into the wheel
so it can start working, and it has the key feature of keeping the air inside of
the wheel. Two of the most important elements of a bicycle wheel depend
on the valve. This is the Strategy. Strategy sets the what, the why and the
how of whatever it’s going to be achieved by the company. It keeps the
efforts and advantages, differentiators and all corporate resources aligned -
inside the company-. Strategy has its ways to each one of the departments
so is the way in to it.
Where is the business model?

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Air – No air, no usefulness. No air, no valve needed. - Execution
Without the right amount of air, the wheel spins or doesn’t.
Depending on the amount of air, the wheel spins properly and
smoothly or heavily and slowly, only wasting fruitlessly the
resources for a poor performance.
Taking the relationship of strategy and execution: you can inject
air to the wheel through the valve, but if the valve is damaged or
is not the proper valve needed for your specific rubber –market-
the wheel will spin for sure, but not for long, and not in the way
it should, leading you out of the way in the need of change.
Where is the business model?

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Finally and very important: there
is the Hub –axle-
Where is the business model?

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Where is the
Business
model?
Where is the business model?

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The axle – The Business Model
Hub –axle-. This is a very interesting part of a wheel because it is at the centre of all its
resources. It holds them all together and allows proper movement. The spokes are
attached to it, which at the same time support the rim, base of the rubble which needs
air and valve. The BUSINESS MODEL is our hub.
All companies have a business model, either if
they thought about it deliberately or if it is just
the consequence of the overwhelming needs
companies face. With the proper business
model, the overall functionality of the company
can be perfect and effective. With the wrong
hub, the wheel will always spin, but will never
reach superior performance to win any race.
The business model is absolutely dependent of the internal abilities of the company,
so there it is where you should make a pause after having everything else set on
place and define your business model, to be able to go out and last longer and faster
in the race, delivering the results you want.
Where is the business model?

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As the Axle, here is where business models live, just in the
centre.
Borrowed from Alexander Osterwalder. 2007
Where is the business model?

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Period!
Now go, and think about your company.
and its business model.
Where is the business model?

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From: Seizing the white space. Mark
For example: Johnson
http://www.seizingthewhitespace.com
The four
elements of a
business model
Where is the business model?

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And:
From: Business Model Generation. A.
Osterwalder and Ives Pigneur.
Business Model Canvas http://www.businessmodelgeneration.com/
Where is the business model?

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For a deeper PDF document with few more words please visit
http://www.scribd.com/doc/74474599
Or come to my blog.
Thanks
See you soon
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Where is the business model?