11.7 The sustainability issue

From the point of view of sustainability the above seven business models may be placed within three groups. These are internally self-sustaining, sustained by collaboration and sustained by additional funding. Figure 11.9 shows where each of the different business models falls within this taxonomy.

Figure 11.9: Business models and sustainability

The classic profit and the cost reduction models are normally the most sustainable as they largely rely on the organization's own expertise and resources to achieve their objectives. Management has a high degree of control over the key variables in this type of business model. The new economy and the Mr Mistoffelees models are highly dependent on collaborative business relationships, which are not necessarily permanent and thus there is a question mark over the long-term sustainability of these business models. This is of course not to say that in the short term they cannot be very effective. The begging bowl, the casino and the maverick are simply not sustainable except over the short term. In all three of these models there is usually a need for quick wins, which may or may not be achievable.