A New ABCD Technique to Analyze Business Models & Concepts

Abstract

Various techniques are used to analyze individual characteristics or organizational effectiveness like SWOT analysis, SWOC analysis, PEST analysis etc. These techniques provide an easy and systematic way of identifying various issues affecting a system and provides opportunity for further development. Whereas these provide a broad based assessment for individual institutions and systems, it suffers limitations while applying to business context. The success of any business model depends on how a company makes profit by specifying its position in the value chain. Therefore identifying suitable business models which would enhance customer value and generate revenue is the current challenge for organizations. In this paper, we have proposed a new technique namely ABCD Technique to analyze a business model and to study its effectiveness in providing value to its stake holders and sustainable profit through expected revenue generation. ABCD is an acronym that stands for Advantages, Benefits, Constraints, and Disadvantages. Application of ABCD analysis results in an organized list of business advantages, benefits, constraints, and disadvantages in a systematic matrix. The entire framework is divided under various issues/area of focus and various business deployment factors affecting the business/concept can be identified and analyzed under each issues by identifying critical effective elements. This analyzing technique being simple, gives guideline to identify and analyze the effectiveness of any business model and new concepts developed.