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Entrepreneurship – from ideas to reality
Entrepreneurship – from ideas to reality

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1.1 Traditional approaches to business

The traditional approach to a business could be represented in this way:

Described image
Figure 1 Traditional product-oriented system

McKinsey’s value delivery system offers an alternative, but still quite traditional, view of business, as shown in Figure 2.

McKinsey’s value delivery system to a business in the form of a basic flow chart.
Figure 2McKinsey’s value delivery system

In both systems, the assumption is that as you move along from left to right, there are opportunities to create value.

Next you will look at what has become a very popular model of describing the essential features of a business, the business model canvas.