Make or Break Issues in IT Management: A Guide to 21st Century Effectiveness
Covers all aspects of IT project management such as the way to achieve maximum benefits from the investment.
TABLE OF CONTENTS Make or Break Issues in IT Management: A Guide to 21st Century Effectiveness
11.3 Components of a business model
11.3 Components of a business model
As mentioned earlier this chapter considers the business model from a macro or high-level perspective in which there are three distinct components of a business model. These three components need to be considered separately before being brought together to represent the whole. These are the investment and how it is funded, the ongoing costs and finally the revenue and how it will be generated.
11.3.1 The investment
There are four generic types of investment, which nearly every organization will employ from time to time. These four generic types of investment (Figure 11.1) are prestige investments, core investments, corn-seed investments and must-do investments (Remenyi et al., 2000). Each one of these investment types has a particular role to play in assisting the organization achieve its goals and objectives and needs to be incorporated into the corporate strategy.
Figure 11.1: Four generic types of investment
11.3.2 Core investments
Core investments are those that are by far the most frequently encountered in any organization. These are the backbone of the business and it is for these goods and services, which are facilitated or created using these investments, that the organization attracts its customers or clients. In the e-business world these will be websites that support the main thrust or the core of the business. These investments will seek to attract more business or they will be used to reduce organizational costs. Such investments may also open up a new line of business...
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