Strategic Cost Management for Emerging Business Models.pptx

The Strategic Cost Management for Emerging Business Models presentation explores how businesses can adapt to changing market dynamics, sustainability goals, and technological advancements. It covers key topics like digital transformation, hyper-competition, and business model innovation, emphasizing the importance of cost-efficient strategies. The presentation highlights emerging market business models, agile organizations, intrapreneurship, and lean startups, providing insights into how companies can optimize operations, foster innovation, and sustain competitive advantage. Real-world examples, such as Netflix’s transformation and Tesla’s supply chain innovations, illustrate successful implementation strategies. By the end, participants will understand how strategic cost management drives growth, resilience, and sustainability in modern business environments.

1. Strategic Cost Management for Emerging Business Models Changing Business Environment Dr. Ankita Chaturvedi

2. Changing Business Environment The business environment is constantly evolving due to various external and internal factors. Companies must stay aware of these changes and adapt to remain competitive. Key Points: Dynamic Market Conditions Businesses must constantly analyze the market to identify new opportunities and threats. Consumer preferences are changing rapidly due to technology and globalization. Technological Advancements Innovations such as Artificial Intelligence (AI), Automation, and Digital Platforms are transforming how businesses operate. Companies that fail to embrace technology risk losing their market position. Globalization & Competition Businesses are now competing on a global scale, not just within their local markets. Increased competition forces companies to be more efficient and customer-focused. Dr. Ankita Chaturvedi

3. Changing Business Environment…cont.. Regulatory & Sustainability Changes Governments are implementing stricter environmental and business regulations. Sustainability and ethical practices are becoming key factors in business success. Need for Adaptability Businesses must continuously evolve to survive. Companies that can quickly adapt to market shifts will have a competitive advantage. Why It Matters: Organizations that ignore these changes risk becoming obsolete. Successful businesses invest in research, innovation, and strategic planning to stay ahead. Dr. Ankita Chaturvedi

4. Key Change Drivers The business environment is influenced by multiple change drivers that force companies to adapt and innovate. These factors shape industries, disrupt traditional business models, and create new opportunities. Let’s examine the 11 key change drivers in detail: Dr. Ankita Chaturvedi

5. 1. Digital Technologies The backbone of modern business transformation. Includes Artificial Intelligence (AI), Cloud Computing, Internet of Things ( IoT ), Automation, Blockchain , and more. Enables faster decision-making, enhanced efficiency, and cost reduction. Example: AI-powered chatbots in customer service improve response time and efficiency. Businesses no longer operate in isolation; they function as part of interconnected ecosystems. Includes suppliers, distributors, customers, government agencies, and competitors working together. Helps in value creation, innovation, and strategic partnerships. Example: Apple’s App Store allows third-party developers to contribute to its ecosystem, increasing Apple’s market reach Dr. Ankita Chaturvedi

6. 3. Hyper Competition Companies face intense competition due to globalization and technological advancements. Market leaders need to constantly innovate to maintain their position. Example: The smartphone industry sees continuous innovation with new features, forcing companies like Apple and Samsung to stay ahead. Radical changes in business models due to technological breakthroughs. Traditional companies face disruption by new digital-first businesses. Example: Netflix disrupted the DVD rental industry by introducing online streaming. Dr. Ankita Chaturvedi

7. 5 . Advanced Manufacturing The use of 3D printing, robotics, and AI-driven automation in production processes. Leads to faster production, cost savings, and improved product quality. Example: Tesla’s gigafactories use AI-powered robotics for car manufacturing. Dr. Ankita Chaturvedi

8. 7. Agile Organizations Companies are moving away from rigid structures to agile frameworks for better adaptability. Encourages cross-functional teams, quick decision-making, and customer-focused innovation. Example: Spotify uses the "Squad" model , where small, independent teams work on different parts of the product . Dr. Ankita Chaturvedi

9. 9. Intrapreneurship Large companies encourage employees to act like entrepreneurs within the organization . Drives innovation and internal business growth . Example : Google’s 20% rule , where employees dedicate time to personal projects (led to Gmail & Google Maps). Dr. Ankita Chaturvedi

10. 11. Supply Chain Partnerships Large companies and governments invest in innovation centers to foster new ideas. Provides funding, mentorship, and networking for startups and entrepreneurs. Example: Facebook’s Startup Garage in Paris helps early-stage tech startups grow . Dr. Ankita Chaturvedi

11. I- Digital Technologies – The Key Enabler Digital technologies play a crucial role in transforming businesses and shaping modern industries. These technologies drive efficiency, cost reduction, innovation, and customer engagement . Companies that fail to adopt them risk falling behind in a highly competitive global market. Let’s explore the 11 major digital technologies that are revolutionizing businesses today: Dr. Ankita Chaturvedi

12. 1.1 . Internet of Things ( IoT ) IoT refers to a network of connected smart devices that communicate and exchange data. Enables real-time monitoring, automation, and data-driven decision-making. Examples: Smart Homes: Alexa and Google Home control appliances through IoT . Manufacturing: IoT -enabled sensors monitor factory machines for predictive maintenance. Healthcare: Wearable devices track heart rate, oxygen levels, and fitness. Dr. Ankita Chaturvedi

13. 1.2 . Robotics Robotics involves the use of intelligent machines to automate tasks, reducing human effort. Enhances efficiency, precision, and safety in various industries. Examples: Manufacturing: Robots in car production lines (e.g., Tesla’s gigafactories ). Healthcare: Robotic surgeries, like the Da Vinci surgical system. Agriculture: Autonomous tractors and drones for smart farming. Dr. Ankita Chaturvedi

14. 1.3 . Artificial Intelligence (AI) AI enables machines to simulate human intelligence, learn from data, and make decisions. Used for automation, personalized recommendations, and predictive analytics. Examples: Retail: Amazon’s AI-driven product recommendations. Banking: Fraud detection using AI-based transaction monitoring. Customer Service: Chatbots like ChatGPT provide instant assistance. Dr. Ankita Chaturvedi

15. 1.4 . Automation Replaces repetitive human tasks with software and machines. Improves productivity, accuracy, and speed while reducing labor costs. Types of Automation: Robotic Process Automation (RPA): Automates routine tasks like data entry. Business Process Automation (BPA): Streamlines workflows across departments. AI-based Automation: Machines learn and make decisions without human input. Example: ATMs automated cash withdrawals, replacing manual bank tellers Dr. Ankita Chaturvedi

16. 1.5 . Cloud Computing Allows businesses to store and process data remotely instead of on local servers. Offers flexibility, scalability, and cost savings. Types of Cloud Computing: Software-as-a-Service (SaaS): Google Drive, Microsoft Office 365. Platform-as-a-Service (PaaS): Google App Engine, AWS Lambda. Infrastructure-as-a-Service (IaaS): Amazon Web Services (AWS), Microsoft Azure. Example: Netflix stores its vast movie database on AWS cloud servers. Dr. Ankita Chaturvedi

17. 1.6 . Autonomous Vehicles Vehicles that navigate without human intervention using AI, IoT , and sensors. Used in self-driving cars, drones, and robotic delivery systems. Examples: Tesla’s self-driving cars use AI and machine learning. Amazon Prime Air delivers packages using autonomous drones. Dr. Ankita Chaturvedi

18. 1.7 . 3D Printing (Additive Manufacturing) Creates three-dimensional objects from digital designs, layer by layer. Reduces manufacturing costs and waste, enabling rapid prototyping. Examples: Healthcare: 3D-printed prosthetic limbs and medical implants. Construction: 3D-printed houses in hours instead of months. Automotive: Car manufacturers print parts for customization. Dr. Ankita Chaturvedi

19. 1.8 . Digital Twin Technology A virtual replica of a physical system (machine, product, or process). Helps in monitoring, testing, and predicting failures before they happen. Examples: Smart Cities: Digital twins model traffic and infrastructure efficiency. Aerospace: NASA uses digital twins to simulate spacecraft conditions Dr. Ankita Chaturvedi

20. 1.9 . Augmented Reality (AR) Enhances the real world with digital overlays, improving visualization and interaction. Examples: Retail: IKEA’s AR app lets users visualize furniture in their homes. Education: AR-powered medical training for students. Gaming: Pokémon GO superimposes characters onto real-world environments. Dr. Ankita Chaturvedi

21. 1.10 . Mobile Internet & 5G Mobile internet allows instant access to information, services, and apps. 5G enhances connectivity, speed, and IoT communication. Examples: Retail: Mobile wallets like Google Pay and Apple Pay. Logistics: Real-time package tracking via mobile apps. Healthcare: Telemedicine and mobile health consultations. Dr. Ankita Chaturvedi

22. 1.11 . Blockchain Technology A decentralized digital ledger that records transactions securely and transparently. Ensures tamper-proof data storage and eliminates intermediaries. Applications of Blockchain : Cryptocurrency: Bitcoin, Ethereum . Supply Chain: Walmart uses blockchain to track food safety. Finance: Smart contracts automate payments and agreements Dr. Ankita Chaturvedi

23. Why Digital Technologies Matter ✔ Increase Efficiency: Automating tasks reduces costs and saves time. ✔ Improve Decision-Making: AI-driven insights help businesses strategize. ✔ Enhance Customer Experience: Personalized services drive customer satisfaction. ✔ Enable Scalability: Cloud computing and automation allow businesses to grow faster. ✔ Drive Innovation: Companies leveraging digital technologies outperform competitors. Dr. Ankita Chaturvedi

24. 2- Business Ecosystems A business ecosystem is a network of organizations—including suppliers, distributors, customers, competitors, and government agencies—that interact and collaborate to create value. Unlike traditional businesses that operate in isolation, business ecosystems thrive on partnerships, innovation, and co-evolution. Coined by James F. Moore in 1993 , the term compares businesses to a biological ecosystem , where different entities coexist, evolve, and adapt. It includes multiple industries working together to deliver products and services efficiently. Unlike traditional markets, where competition dominates, business ecosystems emphasize collaboration and shared growth. Dr. Ankita Chaturvedi

25. 2.1 Key Characteristics of Business Ecosystems ✔ Interconnectedness: Companies, suppliers, customers, and even competitors interact. ✔ Co-evolution: Organizations grow together by adapting to changing business conditions. ✔ Collaboration & Competition (Co-opetition): Companies both compete and collaborate to drive innovation. ✔ Customer-Centric Approach: Shared focus on enhancing customer experience and value delivery. ✔ Innovation & Agility: New technologies and business models emerge rapidly within an ecosystem. Dr. Ankita Chaturvedi

26. 2.2 Real-World Examples of Business Ecosystems A. Tech Ecosystem: Apple Inc. Apple’s ecosystem includes: Suppliers: Semiconductor manufacturers like TSMC and Foxconn. Developers: App Store contributors who create apps and services. Customers: iPhone, Mac, and iPad users interconnected via iCloud and iOS. Partners: Music (Spotify, Apple Music), Healthcare (Apple Watch health tracking). Outcome: Apple’s strong ecosystem increases customer retention and brand loyalty. B. E-Commerce Ecosystem: Amazon Amazon’s business ecosystem includes: Marketplace sellers offering millions of products. AWS (Amazon Web Services) providing cloud services to businesses. Logistics & Delivery (Amazon Prime, drones, warehouse automation). Subscription Services (Prime Video, Kindle Unlimited). Outcome: Amazon dominates online retail, cloud computing, and digital entertainment. Dr. Ankita Chaturvedi

27. 2.3 Real-World Examples of Business Ecosystems C. Automotive Ecosystem: Tesla Tesla integrates suppliers, software developers, energy providers, and charging networks. Autonomous Driving (AI & Data) → AI-powered self-driving technology. Renewable Energy Integration → Tesla Powerwall & Solar Roof. Outcome: Tesla’s ecosystem transforms not just cars , but energy and sustainability. Dr. Ankita Chaturvedi

28. 2.4 Types of Business Ecosystems Innovation Ecosystem Companies, research institutes, and governments working together on R&D. Example: Pharma companies collaborating to develop COVID-19 vaccines. Platform Ecosystem Businesses offering complementary products/services around a core platform. Example: Google’s Android OS + Google Play Store + third-party app developers. Service Ecosystem Multiple companies coming together to provide seamless services. Example: Uber (Ride-sharing) + Google Maps (Navigation) + PayPal (Payments). Dr. Ankita Chaturvedi

29. 2.5 Why Business Ecosystems Matter 🔹 Encourage Innovation: Open collaboration leads to faster technological advancements. 🔹 Reduce Costs & Increase Efficiency: Shared resources lower operational expenses. 🔹 Improve Customer Experience: Integrated services provide convenience and personalization. 🔹 Boost Market Reach: Ecosystems expand businesses into new industries and customer segments. 🔹 Ensure Business Sustainability: Companies that rely on partnerships adapt more easily to disruptions. Dr. Ankita Chaturvedi

30. 2.6 The Future of Business Ecosystems AI-Driven Ecosystems: Machine learning will enhance data-sharing between companies . Blockchain for Transparency: Businesses will use blockchain for secure supply chain tracking . Sustainability-Focused Ecosystems: Green energy and circular economy models will dominate . Decentralized Business Networks: Web3 and metaverse -based business ecosystems will rise. Dr. Ankita Chaturvedi

31. 3. Hyper Competition Hyper-competition refers to a business environment where competition is extremely intense and constantly changing . In such markets, companies must continuously innovate and adapt to maintain their position. It is a condition where businesses face rapid and unpredictable changes in the competitive landscape . Competitive advantages do not last long—companies must keep innovating . Customers have more choices and stronger bargaining power, making it harder for businesses to retain them. Dr. Ankita Chaturvedi

32. 3.1 Key Characteristics of Hyper-Competitive Markets ✔ High Level of Rivalry – Many competitors aggressively challenge each other. ✔ Fast-Paced Market Changes – New technologies, trends, and consumer preferences evolve rapidly. ✔ Flexible Strategies – Businesses must constantly change their approach to stay ahead. ✔ Low Barriers to Entry – New players can enter the market easily and disrupt established businesses. ✔ Global Competition – The internet and globalization have reduced geographical and industry barriers. ✔ Short-Term Competitive Advantages – A company’s edge is quickly challenged and replaced by rivals. Dr. Ankita Chaturvedi

33. 3.2 How Does Hyper-Competition Affect Businesses? 🔹 Price Wars – Companies constantly lower prices to attract customers. 🔹 Innovation Race – Businesses must continuously launch new products and features. 🔹 Customer Expectations Rise – Buyers demand better quality at lower costs. 🔹 High Risk of Market Disruptions – New technologies can make existing products/services obsolete . Example: Smartphone Industry Apple vs. Samsung vs. Xiaomi vs. OnePlus Every year, companies release new smartphone models with improved features. They engage in price cuts, software updates, and marketing campaigns to stay ahead. If a company fails to innovate, customers quickly switch to competitors . Dr. Ankita Chaturvedi

34. 3.3 Strategies to Succeed in Hyper-Competition ✅ Continuous Innovation – Develop new products/services faster than competitors. ✅ Customer-Centric Approach – Understand and fulfill evolving customer needs. ✅ Agile Business Models – Be flexible and quick in decision-making. ✅ Cost Leadership – Reduce operational costs while maintaining product quality. ✅ Strategic Alliances – Collaborate with other businesses to strengthen market position. Dr. Ankita Chaturvedi

35. 4. Business Transformations & Disruptions What is Business Transformation? Business transformation happens when a company makes major changes in its processes, technology, or strategy to stay relevant and competitive . Types of Business Transformation : 🔹 Process Transformation – Improving internal processes using technology . 🔹 Business Model Transformation – Changing how a company operates or makes money . 🔹 Domain Transformation – Expanding into new markets or industries . 🔹 Cultural Transformation – Shifting company mindset and values for innovation . Example : Digital Payments (UPI in India ) Earlier , payments were done via cash or cards.UPI (Unified Payments Interface) transformed the market by making transactions instant and mobile- friendly.Small businesses and individuals can now accept digital payments easily. Dr. Ankita Chaturvedi

36. Cont … What is Business Disruption? Disruption happens when a new business model or technology replaces existing ways of doing business , making older methods obsolete. Characteristics of Disruption: ✔ A new player challenges industry leaders. ✔ Existing companies struggle to compete with the new model. ✔ Customers shift to the disruptive business because it offers better value, convenience, or lower cost . Example: Uber vs. Traditional Taxis Earlier, passengers had to call a taxi service or hail a cab on the street. Uber introduced app-based ride-hailing , allowing people to book rides instantly. Traditional taxi services failed to adapt quickly and lost market share Dr. Ankita Chaturvedi

37. 4.1 Disruptive Innovation and its types Disruptive innovation occurs when a company creates a product or service that is: ✅ Simpler than existing alternatives. ✅ More affordable and accessible to a wider audience. ✅ Based on new technology or business models . Types of Disruptive Innovation: 🔹 Low-End Disruption – A company enters the market with a cheaper version of a product. Example: Online book retailers like Amazon offered books at lower prices, disrupting physical bookstores. 🔹 New-Market Disruption – A company creates a new market that didn’t exist before. Example: The first personal computers were cheaper than mainframe computers, making them accessible to more people. Dr. Ankita Chaturvedi

38. 4.2 Strategies to Adapt to Transformation & Disruption ✅ Be Proactive – Don’t wait for change; lead the transformation . ✅ Invest in Technology – Use AI, automation, and digital platforms. ✅ Customer Focus – Understand new customer needs and behaviors. ✅ Flexibility & Agility – Change business models quickly when needed. ✅ Continuous Learning – Stay updated on industry trends and innovations. Dr. Ankita Chaturvedi

39. 5. Advanced Manufacturing What is Advanced Manufacturing? It integrates modern technology (AI, robotics, automation, IoT ) into production. Focuses on increasing efficiency, reducing waste, and improving product quality . Helps businesses stay competitive in fast-changing markets. Benefits of Advanced Manufacturing ✅ Faster Production – Reduces the time needed to manufacture products. ✅ Better Quality – Ensures consistency and minimizes defects. ✅ Cost Reduction – Saves money by improving efficiency and reducing waste. ✅ Sustainability – Uses eco-friendly methods to reduce environmental impact. ✅ Customization – Enables companies to create personalized products at scale. Dr. Ankita Chaturvedi

40. 5.1 Impact of Advanced Manufacturing on Cost & Value Factor Traditional Manufacturing Advanced Manufacturing Production Speed Slow & labor-intensive Fast & automated Quality Control Manual inspection AI-based automated checks Customization Difficult & expensive Easy with 3D printing Waste & Sustainability High material waste Reduced waste & energy-efficient Dr. Ankita Chaturvedi

41. 5.2 How Advanced Manufacturing Transformed Industries Automotive Industry Before: Manual assembly lines required thousands of workers. Now: Robots, AI, and IoT streamline car manufacturing (e.g., Tesla). Healthcare Industry Before: Generic medical implants made in bulk. Now: 3D-printed customized implants for individual patients. Electronics Industry Before: Circuit boards were assembled by hand. Now: AI-powered automation produces millions of chips daily . Dr. Ankita Chaturvedi

42. 6. Lean Startups What is a Lean Startup? A lean startup is a business that follows a test-learn-adapt approach instead of spending years developing a product without feedback. Instead of creating a detailed business plan , lean startups test ideas with real customers and make improvements based on feedback. Key Principles of Lean Startup ✅ Build-Measure-Learn Cycle : Start with a Minimum Viable Product (MVP) (a simple version of the product). Test it with customers , gather feedback, and improve based on real data . ✅ Validated Learning : Instead of assumptions, use real customer feedback to improve. ✅ Pivot or Persevere: Pivot : If the idea isn’t working, change direction based on feedback. Persevere: If the idea is successful, improve and scale it further. ✅ Continuous Experimentation : Always test new ideas and features before making large investments. Dr. Ankita Chaturvedi

43. 6.1 Lean Start-up Methodology The Lean Start-up methodology is based on rapid experimentation, customer feedback, and iterative improvements . The goal is to develop a product quickly, efficiently, and with minimal risk by continuously testing and refining it . 1. Build-Measure-Learn Feedback Loop The Build-Measure-Learn cycle is the core principle of the Lean Startup methodology. It helps startups test ideas quickly and make improvements based on real customer data. Step 1: Identify the Problem The first step is to understand the customer’s pain point or problem. The startup must define what they are trying to solve before developing a solution. Example: If customers struggle with long waiting times for taxis, an on-demand taxi app like Uber could be a solution. Dr. Ankita Chaturvedi

44. 6.1 Lean Start-up Methodology…. Cont.. Step 2: Build a Minimum Viable Product (MVP) An MVP (Minimum Viable Product) is a simple version of the product with just enough features to test the idea with early users . Instead of building a fully developed product , startups launch with the basic version to gather real user feedback . Example: Dropbox first launched a short demo video explaining its product rather than developing a full version. Step 3: Measure Results & Gather Feedback Once the MVP is launched, the startup collects customer feedback and usage data. This includes tracking how users interact with the product, their complaints, and what features they like or dislike. Example: Airbnb founders initially rented out their own apartment to test demand before launching their platform. Step 4: Learn & Improve Based on the feedback, startups analyze if they are moving in the right direction . If the idea works, they continue improving it. If not, they pivot (change direction). The goal is to keep learning and refining until the product-market fit is achieved. Dr. Ankita Chaturvedi

45. 6.2 The “Five Whys” Approach The "Five Whys" technique is an investigative method used to identify the root cause of a problem by repeatedly asking “Why?” How it Works: Identify a problem (e.g., customers are not using an app ). Ask "Why?" (e.g., Because the interface is difficult to use ). Ask "Why?" again (e.g., Because users don’t understand the navigation ). Keep asking “Why?” until the root cause is found. Fix the underlying issue , not just the surface problem. Dr. Ankita Chaturvedi

46. 6.3 Traditional vs. Lean Startup Aspect Traditional Startup Lean Startup Product Development Long, expensive process Quick, iterative process Decision Making Based on assumptions Based on real customer feedback Failure Risk High due to large investment Lower due to testing in small steps Speed to Market Slow Fast Dr. Ankita Chaturvedi

47. 6.4 Benefits and challenges of Lean Startups Benefits of Lean Startups ✅ Saves Money – Avoids wasting resources on ideas that don’t work. ✅ Speeds Up Product Launch – Gets products to market quickly. ✅ Reduces Risk – Testing with customers minimizes failure. ✅ Encourages Innovation – Constantly evolving based on feedback. Challenges of Lean Startups Requires Fast Adaptation – Teams must be flexible and open to change. Customer Feedback is Crucial – Wrong feedback can lead to poor decisions . Not Suitable for Every Industry – Some businesses (e.g., medicine) need long R&D cycles . Dr. Ankita Chaturvedi

48. 7. Agile Organizations An agile organization is a business structure designed to adapt quickly to change, respond to customer needs, and innovate rapidly . Unlike traditional organizations that rely on rigid hierarchies, agile companies embrace flexibility, collaboration, and continuous improvement . A company that is flexible and adaptable to market changes. Employees work in small, cross-functional teams rather than large, isolated departments. Encourages quick decision-making, innovation, and customer focus . Unlike traditional organizations, where power flows from top to bottom , agile companies empower employees at all levels. Dr. Ankita Chaturvedi

49. 7.1 Characteristics of an Agile Organization ✅ Flat Structure & Decentralized Decision-Making Employees collaborate across teams rather than working in silos. Decisions are made faster because employees don’t need approval from multiple layers of management. ✅ Customer-Centric Approach Agile organizations focus on customer needs and quickly adjust based on feedback. Example: Netflix continuously updates its content library based on user preferences. ✅ Rapid Experimentation & Continuous Improvement New ideas are tested quickly in short cycles (called sprints ). Employees continuously refine and improve products based on real-time data Dr. Ankita Chaturvedi

50. 7.1 cont.. ✅ Cross-Functional Teams Employees from different departments (marketing, engineering, design) work together to solve problems. Example: Spotify uses "Squads" (small, independent teams) to develop new app features. ✅ High Transparency & Open Communication Agile companies encourage open feedback and knowledge sharing. Example: Google allows employees to pitch ideas and collaborate across teams . ✅ Empowered Employees & Flexible Work Culture Teams self-organize and take ownership of their work. Employees can work remotely, set their own goals, and innovate freely . Example: Tesla employees are encouraged to solve problems independently without waiting for approval. Dr. Ankita Chaturvedi

51. 7.2 Traditional vs. Agile Organizations Factor Traditional Organization Agile Organization Structure Hierarchical & rigid Flat & flexible Decision-Making Slow & centralized Fast & decentralized Teamwork Siloed departments Cross-functional teams Innovation Speed Slow due to bureaucracy Rapid, continuous improvement Customer Focus Product-driven Customer-driven Dr. Ankita Chaturvedi

52. 7.3 Benefits and Challenges of Agile Organizations Benefits ✅ Faster Time-to-Market – Products and services reach customers quicker . ✅ Improved Employee Engagement – Employees have more autonomy and creativity . ✅ Better Customer Satisfaction – Quick adjustments based on real user feedback . ✅ Higher Adaptability – Companies respond to change faster than competitors. Challenges Requires Cultural Change – Employees and leaders must embrace flexibility and open communication . Difficult to Scale – Large organizations may struggle to implement agile methods across all departments . Risk of Poor Coordination – Without clear goals, multiple teams may work on disconnected projects . Dr. Ankita Chaturvedi

53. 7.3 Real-World Examples of Agile Organizations Spotify Uses small, independent teams ("Squads") instead of rigid departments. Each squad works on a specific feature (e.g., improving recommendations, new playlists). Teams operate autonomously but align with company-wide objectives . Google Encourages employees to spend 20% of their time on creative side projects. Many innovations like Gmail and Google Maps came from this agile approach. Dr. Ankita Chaturvedi

54. 8. Startups vs. Incumbents Startups A startup is a newly established company designed to find a scalable and repeatable business model . Focuses on disrupting industries with innovative solutions . Operates in high uncertainty with limited resources. Adopts a lean, agile, and risk-taking approach. Example: Airbnb disrupted the hotel industry by offering peer-to-peer accommodations . Incumbent An incumbent is a well-established company that already has a strong market presence . Focuses on stability, efficiency, and protecting market share . Operates with structured processes and hierarchical decision-making . Can be slow in adopting new changes due to its size and complexity. Example: Hilton Hotels, which dominated the hospitality industry before Airbnb emerged Dr. Ankita Chaturvedi

55. 8.1 Key Differences Between Startups & Incumbents Factor Startups Incumbents Structure Flat, flexible teams Hierarchical, bureaucratic Speed of Innovation Rapid experimentation Slow adoption of new ideas Decision-Making Quick, decentralized Slow, centralized Risk Appetite High (willing to fail fast) Low (avoid risk at all costs) Customer Focus New customer segments Existing customer base Technology Adoption Latest tools and AI-driven Gradual implementation Example Tesla (challenging automakers) Ford (legacy automobile brand) Dr. Ankita Chaturvedi

56. 8.2 How Startups Challenge Incumbents Technology Disruption: Startups use the latest AI, automation, and cloud solutions to create better products faster. 🔹 Customer-Centric Approach: Focus on user feedback and personalization , unlike incumbents who rely on brand loyalty. 🔹 Cost Efficiency: Startups operate with low overhead costs and flexible pricing models. 🔹 Business Model Innovation: New ways to monetize services (e.g., subscription models, freemium products, sharing economy ). Example: Netflix disrupted Blockbuster by offering on-demand streaming , eliminating the need for physical rentals Dr. Ankita Chaturvedi

57. 8.3 How Incumbents Defend Against Startups Acquiring Startups – Large companies buy innovative startups (e.g., Facebook acquiring Instagram & WhatsApp ). Investing in R&D – Incumbents allocate more funds to innovation and new product development . Building Agile Teams – Companies create startup-like divisions to accelerate innovation . Expanding Digital Transformation – Adopting AI, blockchain , and IoT to stay competitive. Dr. Ankita Chaturvedi

58. 8.4 Stages of a Startup’s Growth Pre-Startup Stage – Defining the problem and target customers . Startup Stage – Developing a Minimum Viable Product (MVP) and testing the market. Scale-Up Stage – Expanding operations and customer base, increasing investments. Unicorn Status – A startup valued at $1 billion or more (e.g., Uber, Airbnb, Byju’s ). Becoming an Incumbent – When a startup gains dominant market control , it becomes the new industry leader . Dr. Ankita Chaturvedi

59. 9. Intrapreneurship Intrapreneurship is the practice of entrepreneurial thinking within an existing organization . Instead of launching their own businesses, employees take ownership of innovative projects while working for a company . Employees develop new ideas, products, or business models within a company. Encourages risk-taking and innovation like a startup, but within a stable organization. Helps companies stay competitive, innovative, and adaptable . Example: Gmail was created as an internal project by Google employees under its "20% time" policy . Dr. Ankita Chaturvedi

60. 9.1 Characteristics of an Intrapreneur Innovative Thinker – Constantly looks for new opportunities and improvements . Self-Motivated – Takes initiative without waiting for orders. Risk-Taker – Willing to experiment and challenge traditional methods . Problem Solver – Finds creative solutions to business challenges . Results-Oriented – Focused on achieving real impact and business value . Dr. Ankita Chaturvedi

61. 9.2 Intrapreneurship vs. Entrepreneurship Factor Entrepreneur Intrapreneur Ownership Owns the business Works within a company Risk Level High – personal financial risk Low – company provides funding Resources Must raise own capital Uses company’s resources Decision-Making Full control over decisions Follows company guidelines Example Elon Musk (Tesla, SpaceX) Paul Buchheit (Created Gmail at Google) Dr. Ankita Chaturvedi

62. 9.4 Benefits and Challenges of Intrapreneurship Benefits Boosts Innovation – Employees create new products and business models . Encourages Employee Engagement – Workers feel motivated and valued . Increases Competitive Advantage – Helps companies stay ahead of market trend Reduces Risk – Testing ideas within a company is safer than launching a startup Attracts & Retains Talent – Encourages creative professionals to stay and grow. Challenges Corporate Resistance – Traditional companies fear change and risk . Bureaucratic Hurdles – Slow decision-making can kill innovation . Limited Freedom – Intrapreneurs still have to follow company rules . Short-Term Focus – Companies may cut projects too soon if results are not immediate. Dr. Ankita Chaturvedi

63. 9.5 How Companies Can Encourage Intrapreneurship Provide Freedom to Experiment – Allow employees to test new ideas . Create Innovation Labs – Set up dedicated spaces for R&D Reward & Recognize Innovation – Offer bonuses, promotions, or incentives Reduce Bureaucracy – Streamline approval processes for new ideas. Support Risk-Taking – Encourage learning from failure without penalties . Dr. Ankita Chaturvedi

64. 10. Innovation Hubs & Incubators Innovation Hubs: Physical spaces where researchers, entrepreneurs, and innovators come together. Help in developing industry-changing ideas and products. Encourage collaboration and knowledge-sharing. Incubators: Focus on early-stage startups with no clear business model yet. Provide mentorship, resources, and networking to turn ideas into viable businesses. Often work on a fee-based model, unlike accelerators that take equity. Dr. Ankita Chaturvedi

65. 10.1 Difference Between Incubators & Accelerators Feature Incubators Accelerators Stage of Startups Early-stage, idea development Growth-stage, already has an MVP Focus Creating a business model Scaling up & rapid growth Duration Long-term (months to years) Short-term (weeks to months) Funding Fee-based support Usually takes an equity stake Key Services Business development, mentorship, funding access Intense mentorship, investor connections Dr. Ankita Chaturvedi

66. 11. Supply Chain Partnerships What is Supply Chain Partnership? A collaboration between businesses and their suppliers/distributors. Ensures optimized flow of materials & information in the supply chain. Helps in cost reduction, efficiency, and timely delivery of products. Why is it Important? Reduces operational costs Improves product availability & customer satisfaction Builds long-term business resilience Dr. Ankita Chaturvedi

67. 11.1 Approaches to Supply Chain Innovations Three Key Supply Chain Models: Rapid Supply Chain: Prioritizes speed & efficiency (e.g., same-day delivery models). Used in fast fashion, e-commerce (Amazon, Flipkart) . Agile Supply Chain: Focuses on flexibility & responsiveness to demand changes. Used in electronics, FMCG, and seasonal products . Lean Supply Chain: Focuses on waste reduction & cost minimization . Used in Toyota Production System (JIT – Just-in-Time) Dr. Ankita Chaturvedi

68. 11.2 Essentials of Seamless Supply Chain Collaboration Real-time Data Sharing: Use of AI, cloud computing & IoT for instant data access. Configurable Workflows: Custom workflows to match unique business needs. AI & Machine Learning for Smart Decision-Making: AI predicts demand fluctuations & manages risks. In-Context Messaging & Communication Tools: Ensures effective coordination between suppliers & retailers. End-to-End Visibility: Tracks inventory & supplier performance for proactive issue resolution. Dr. Ankita Chaturvedi

69. Business model Dr. Ankita Chaturvedi

70. Business Models It explains how a business operates, creates, and delivers value. Consists of three key components: Customer Value Proposition – The benefit offered to customers. Profit Formula – How the business makes money. Key Resources & Processes – Assets & strategies that ensure success. Example: Uber’s Business Model: Connects passengers with drivers via a digital platform, earning revenue through ride commissions. Dr. Ankita Chaturvedi

71. Emerging Business Models Three Types of Emerging Business Models: Hyper Disruptive Business Models (Tech-driven transformation ). Sustainability-Oriented Business Models (Eco-friendly, ethical business ). Models for Emerging Markets (Designed for growing economies like India & Africa). Dr. Ankita Chaturvedi

72. 1. Hyper Disruptive Business Models 1.1 Free Model (Ad-based & Cross-Subsidization ) Definition: Provides core products or services for free. Generates revenue from ads or complementary premium products. Types: Advertising Model (Hidden Revenue Model): Users get free services, while advertisers pay for visibility. Example: Google Search, Facebook. Cross-Subsidization (Razorblade Model): Sell one product at a low price to drive high-margin sales of another. Example: Gillette (cheap razors, expensive blades), Printers & Ink. Dr. Ankita Chaturvedi

73. 1.2 Subscription Model Definition: Customers pay a recurring fee to access services/products. Features: Steady revenue stream. Builds customer loyalty. Focuses on customer experience and convenience. Examples: Netflix (monthly fee for unlimited streaming). Amazon Prime (membership benefits, faster shipping, video streaming). SaaS platforms (Microsoft 365, Adobe Creative Cloud). Dr. Ankita Chaturvedi

74. 1.3 Freemium Model Definition: Basic version is free, with premium features available at a cost. Key Features: Users try the service before committing to payment. Encourages upgrades by offering value in paid versions. Examples: Spotify (free version with ads, paid version ad-free with extra features). LinkedIn (basic networking free, premium for career insights and job applications). Canva (basic design tools free, premium templates and features paid). Dr. Ankita Chaturvedi

75. 1.4. Digital Platform Model (E-Commerce Model) Definition: A business that provides a marketplace for buyers and sellers. Key Characteristics: Platform-based interaction. Generates revenue from commissions, ads, and premium listings. Types: Business to Business (B2B): IndiaMART , AJIO Business Business to Consumer (B2C): Amazon, Flipkart. Customer to Customer (C2C): OLX Example: MagicBricks (connects property owners with renters, earns commissions Dr. Ankita Chaturvedi

76. 1.5 Hypermarket Model Definition: Large-scale retail model offering products at lower costs. Features: Leverages economies of scale. Operates both physically and digitally ( Omnichannel ). Examples: D-Mart (physical retail chain offering discounted prices). Amazon (online hypermarket with vast product range). Reliance Retail (hybrid of brick-and-mortar and digital commerce). Dr. Ankita Chaturvedi

77. 1.6 Access-Over-Ownership Model Definition: Consumers rent or share assets instead of owning them. Key Features: Reduces financial burden on consumers. Provides flexibility and accessibility. Maximizes utilization of available resources. Examples : Car rentals & ride-sharing: Zoomcar , Uber, Ola. Co-working spaces: WeWork , Regus. Subscription-based services: Adobe Creative Cloud, Microsoft 365. Short-term housing rentals: Airbnb, OYO Rooms. Dr. Ankita Chaturvedi

78. 1.7 Service Ecosystem Model Definition: A company offers multiple interdependent services that enhance customer experience. Key Features: Encourages customer retention within the ecosystem. Enhances brand loyalty. Examples: Apple (iPhones, MacBooks , iCloud, Apple Pay, App Store). Google (Search, Gmail, YouTube, Google Drive). Amazon (E-commerce, AWS, Prime Video, Alexa). Dr. Ankita Chaturvedi

79. 1.8 Experience Model Definition: Enhances customer engagement by offering personalized experiences. Features: Focus on exclusivity, customization, and luxury. Examples: Luxury cars: Rolls Royce offers factory visits and customization options. Premium airline lounges: Emirates first-class lounge experience. Nike By You: Custom-designed sneakers. Dr. Ankita Chaturvedi

80. 1.9 On-Demand Model Definition: Provides instant access to services/products based on real-time demand. Features: Leverages digital technology for speed and convenience. Provides flexibility in service delivery. Examples: Ride-hailing apps: Uber, Ola. Food delivery services: Zomato , Swiggy . Online grocery delivery: BigBasket , Instacart . Dr. Ankita Chaturvedi

81. 2. Sustainable Business Models What is a Sustainable Business Model? A business model that balances profitability, social responsibility, and environmental impact . Focuses on the Triple Bottom Line (TBL): Economic – Revenue & profitability Social – Ethical practices, inclusivity Environmental – Carbon footprint, resource management Dr. Ankita Chaturvedi

82. 2.1 Key Aspects of Sustainable Business Models Three Dimensions of Sustainability : Social : Ethics, diversity, and inclusion in business practices . Economic : Profitability, revenue generation, and cost efficiency . Environmental : Carbon footprint reduction, circular economy models. Dr. Ankita Chaturvedi

83. 2.2 Approaches to Developing a Sustainable Business Model 1️ Product-Service Systems (PSS) – Customers pay for service, not product ownership (e.g., leasing). 2 ️ Open Innovation – Collaboration with external organizations for idea development. 3 ️ Peer-to-Peer Innovation – Decentralized innovation through community-based contributions. 4 ️ Closed-Loop Production – Recycling materials to eliminate waste (Cradle-to- Cradle ). 5 ️ Crowdfunding – Raising funds through public contributions (Kickstarter, Indiegogo ). 6 ️ Sharing Economy – Maximizing asset usage through sharing (Airbnb, Uber). 7 ️ Social Enterprises & Benefit Corporations – Business models legally committed to social impact. 8 ️ Gift Economy – Voluntary contributions instead of monetary exchange (Wikipedia). 9 ️ New Manufacturing Paradigm – 3D printing & decentralized production to optimize resource use. Dr. Ankita Chaturvedi

84. 3. Business Models for Emerging Markets What are Emerging Markets? Economies transitioning from traditional systems to free-market economies . Key characteristics: Growing middle class, rapid industrialization, and economic integration. Examples of Emerging Market Economies: India, China, Brazil, South Africa, Mexico. Example : Jio’s low-cost mobile data strategy revolutionized the Indian telecom industry. Dr. Ankita Chaturvedi

85. 3.1 Characteristics of Emerging Market Business Models Key Features: 1 ️ Price Sensitivity – Affordable pricing for mass adoption. 2 ️ Market Heterogeneity – Diverse consumer preferences. 3 ️ Resource Constraints – Limited infrastructure, supply chain challenges. 4 ️ High Demand for Basic Services – Healthcare, education, finance. 5 ️ Entrepreneurial Growth – Local startups solving market-specific problems. Example: Xiaomi’s budget smartphone strategy in India and Africa. Dr. Ankita Chaturvedi

86. 3.2 Strategies for Success in Emerging Markets Best Business Strategies: Customization of Offerings – Adapting products to local preferences. Affordable Pricing Models – Penetration pricing, micro-financing. Partnership with Local Firms – Leveraging local expertise & networks. Digital Innovation – Mobile banking, AI-based customer support. Alternative Distribution Channels – Rural & informal market distribution. Example : McDonald's localization strategy ( McAloo Tikki Burger in India). Dr. Ankita Chaturvedi

87. 3.3 Challenges of Doing Business in Emerging Markets Regulatory Uncertainty – Changing government policies . Lack of Infrastructure – Poor transport & communication facilities . Economic Volatility – Currency fluctuations & inflation risks. Unbranded Competition – Informal markets & counterfeit goods. Political & Social Factors – Bureaucracy, corruption, instability. Dr. Ankita Chaturvedi