Remarks on the quality of the construction of business concepts

Abstract

Purpose

The purpose of this paper is to develop a framework for the construction of business concepts.

Design/methodology/approach

The proposed framework is developed through a discussion which is based on a review of existing literature and prevailing views as regards the concept of the business concept. The key premises of the study are tested through an explorative case research.

Findings

Customer value is the core of the proposed framework. Customer interface, product offering and differentiation form the key value creating platform in the management of business concepts. All three components of the platform are tightly linked and dependent of each others, implying that in order to find a good harmony firms must think holistically and be prepaid for adjustments. A new business configuration becomes necessary each time when the terms of the value creation are changed to deal with the competition. Configuration of existing business activities may offer a solution through differentiation but is subject to the building of new competences. As a whole innovation and competence building form the two most decisive critical factors behind the construction of successful new business concepts.

Practical implications

The suggested framework indicates upon which key issues business managers should focus when they aim to identify and develop new business concepts.

Originality/value

The concept of business concept is highly undeveloped as to its conceptual clarity and relation to strategic thinking. Also the existing literature of this topic is very scarce. The suggested framework improves this situation in attempting to develop a concrete tool for the understanding of what a business concept is.

Citation

Tapio Lindman, M. (2007), "Remarks on the quality of the construction of business concepts", European Business Review, Vol. 19 No. 3, pp. 196-215. https://doi.org/10.1108/09555340710746464