Sample Essay on E-Enterprise: Business Models, Architecture, and Components

Review Questions (6, 8, 9 & 10)

            A business model refers to an implemented plan by an organization to provide a way of conducting business activities and operations in a bid to generate revenue. A model can be complex or simple depending on the core activities that define a business (Hoque, 2000). In other words, a business model defines how activities are carried out in attempts to make profits. The primary components of a business model include value proposition, which defines a company’s products and/or services to fulfill the needs of customers. The revenue model endeavors to describe how a firm will earn revenue by generating profits and producing superior returns on invested capital. The market opportunity is another crucial element in any business model that defines the market space that the company will serve. Additionally, the competitive environment forms a critical component of a business model by identifying the presence of other firms selling similar products or offering similar services to the same market. According to Hoque (2000), the competitive advantage component is ensured by the strengths of the firm in terms of its ability to provide superior products at a lower price than most of its competitors. In conclusion, a management team ensures the success of a business model as a component that ensures that the business wins the trust of investors as well as brings in experience and expertise to reinforce a business model.

            Technological dynamics have become inevitable in the contemporary business world with firms doing their best to adopt new technologies and implement systems for survival. However, no matter their efforts, successful application of innovative technologies and systems often proves difficult to these firms. Essentially, this is because of several reasons that include lack of necessary skills and expertise among the staff to ensure proper application of these technologies and systems due to the sophistication accompanied by these new technologies and systems. Additionally, implementing new technologies and systems requires heavy investment for maintenance, and if a firm runs out of funds for regular maintenance, successful application of these technologies and systems will ultimately not occur (Christensen, 2013). Poor planning, as well as poor management, also contributes to unsuccessful application of technologies and systems.

            Innovator’s dilemma refers to the situation whereby an organization is torn between adopting new technology to remain competitive or maintaining the status quo in order to continue satisfying customers because of the possibility that the customers may not be willing to use this technology. As explicated by Christensen (2013), if a firm fails to adopt this technology, it will automatically go to waste.

            On the other hand, disruptive innovation refers to the type of innovation that tends to change things by bringing in a complete change in the way things are done. Essentially, these innovations result in a rather worse performance of a product or service because of the fact that they are less expensive, simpler, and more convenient for users. They occur less frequently such as the steamboats, automobiles, digital photography, among others in the history of innovation and industrialization (Christensen, 2013). Disruptive innovation brings in new technologies that present unique and uncertain change that may hurt the performance of a firm due to reaction from customers as regards to the introduction of new technology in the market. Hoque (2000) affirms that, unlike sustaining innovation, disruptive innovation creates new value networks by evolving existing ones into new ones that tend to make work easier for the users.


Christensen, C. (2013). The Innovator’s Dilemma: When New Technologies Cause Great Firms    to Fail. New York: Harvard Business Review Press.

Hoque, F. (2000). E-Enterprise: Business Models, Architecture, and Components. Cambridge: Cambridge University Press.