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cycle management, we all need to start thinking about replacing vation or redesign projects, and track the overall evolution of the organization’s business mod-
our current cash-generating business models with growth models els. It should also manage the “master” business model that describes the entire organization. 259
for tomorrow’s marketplace. This master template could serve as the starting point for each business model project within
the organization. The master business model would also help different functional groups, such
Dell disrupted the PC industry when it introduced the build-to-order as operations, manufacturing, or sales align with the organization’s overarching goals.
format and direct online sales. Over the years, Dell grew so success- } Manage synergies and conflicts One of the business model governance authority’s main tasks
fully that it established itself as the industry leader. But the company would be to align business models with each other to exploit synergies and avoid or manage
failed to fully rethink its once disruptive business model. Now that conflicts. A Canvas document describing each business model in the organization would help
the industry landscape has changed, Dell risks remaining stuck illuminate the big picture and achieve better alignment.
in a commoditized PC market, while growth and profits, generated } Business model portfolio Successful, established companies should proactively manage a
elsewhere, lie outside its reach. “portfolio” of business models. Many formerly successful companies in the music, newspaper,
and automotive industries failed to proactively examine their business models and slid into
crisis as a result. A promising approach to avoiding this fate is to develop a portfolio of business
Working from the Established Company Perspective models whereby cash-generating businesses finance business model experiments for the future.
} Business Model Governance Consider establishing a “business } A beginner’s mindset Maintaining a beginner's mindset helps keep us from becoming victims
model governance” authority to help better manage business of our own successes. We all need to constantly scan the landscape and continuously assess our
models across the enterprise. This group’s role would be to own business models. Take a fresh look at your model regularly. You may need to overhaul a
orchestrate business models, engage stakeholders, launch inno- successful model sooner than you thought.

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