Why management models are crucial to the success of business models

Abstract

Purpose The author posits that the management model of an organization determines what kind of business models can be pursued within that organization and that successful 21st century management models are very different from those that succeeded in the 20th century. Design/methodology/approach The author compares and contrasts successful 21st century management models with models that succeeded in the 20th century. Findings Success in the digital age requires a 21st century management model and mindset based on an obsession with delivering value to customers. Practical implications The management model incorporates the key ‘written and unwritten rules’ of the firm. The success of digital innovation can be threatened by 20th Century management assumptions that thwart Agile initiatives. Originality/value Article explains how Agile mindsets and practices are essential to the 21st century management model, and how they potentiate the firm’s focus on creating customers.