Integrated Business Model

Enterprises throughout the ages have always had to deal with processes of change. The invention of printing with movable type almost wholly superseded the medieval business model of—usually monastic—scriptoria in the space of just a few decades. Change, therefore, is not a modern phenomenon. Yet what is new is the number and growth of influencing factors that now determine business actions. Increasing globalization, more intense competition, ever shorter innovation cycles and growing expectations on the part of stakeholders are just some of the parameters that have a decisive effect on the success of business players.

The brief section below outlines the conceptual framework for the sections and chapters that follow. This standard frame of reference should establish a common understanding of the general concept of the business model, before a comprehensive definition of the term is given in Sect. 2.2.

One factor that has defined the world of the twenty-first century is undoubtedly the significant increase in complexity, and this applies equally to all sectors and industries. The introduction in Sect. 3.1 addresses the complexity issue and finds that established business model concepts are in principle suited to reducing complexity, but in practice insufficient in an increasingly difficult environment. A more extensive, comprehensive concept is therefore required for output design. An integrative approach is proposed here as a suitable method for managing complexity in a business context. Before we introduce and detail the idea of the Integrated Business Model, however, Sect. 3.2 outlines the underlying theory: the St. Gallen Management Concept that provides the conceptual basis for the new approach. Section 3.3 outlines the design of the new integrated model and the two sections that follow detail the characteristics and components of that model. If a business model is to be successful in the long term, it cannot be developed or operated in isolation from its environment. Section 3.4 therefore details a method for defining the relevant creative and decision-making scope; Sect. 3.5 then describes the ten core elements of the Integrated Business Model.

The iOcTen Integrated Business Model introduced here is designed to help enterprises shape their economic future by providing decision-makers, strategists and organizational developers with a useful, practical tool for implementing business model development initiatives.