Introduction:
A business model has many components. In one of the most simple forms, business models
include the CEO, Operations, Marketing, Sales, Finance, and Human resources. Each business
may choose to add other components to its structure to serve its needs.
Components of a business and how they add value:
A business could add a value network or a strategic choice department to its model (Shafer et al.,2004). This value network communicates with suppliers & customer relationships to create
and grow strong working relationships. These relationships help a company maintain and allow it to develop a reputation that can be used as a growth tool. A strategic choice department can be a very valuable component for a business to utilize. This department is involved in the branding and process revenue/pricing of the products (Shafer et al.,2004). The department’s goal is to make assumptions and determine the effects that it would have on the business. This
allows them to prepare for any challenges in the future.
How does Information Technology add to the businesses value:
As the world of technology is constantly evolving technology in the business model is as well. Information technology (IT) has changed the playing field within the business world(Howell et al.,2017). As businesses have increased their use of computers and access to the Internet, they have also increased their ability to innovate (Howell et al.,2017). The use of the Internet in the workplace has created more room for inclusion as well as reduced information costs (Howell et al.,2017).
Roles of Information Technology within a business:
It has many roles and responsibilities within a business. The research from The Role of Information Technology in business models went into detail about how IT was able to create a reduced cost for transactions. This can be completed through creating “multiple payment options” (Howell et al.,2017). Multiple payment options make it easier for consumers to purchase the product. IT can also create a more feasible way to reach all consumers. This can be done by switching to just sending out text or email advertisements. IT in a business should
be organized by the business’s needs. The creation of certain departments dedicated to privacy protection, marketing, finance, and more should be instituted. Within these departments, IT specialists should be up to date on all current programs and constantly looking for any improvements that could be made.
References
Rachel Howell et al. (2017a) Value capture and value creation: The role of Information Technology in business models for Frugal Innovations in Africa, Technological Forecasting and Social Change. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0040162517313161 (Accessed: 08 February 2025).
Scott M. Shafer a, a, b, years, A. the past few, Chen, S., Amit, R., … Hamel, G. (2004).The power of business models. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0007681304001132(Accessed: 08 February 2025)