Corporate Entrepreneurship and Innovation

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Framework and tools for establishing organizational, Industry and General Business Drivers

BUSINESS DRIVERS FOR ORGANIZATION- BUSINESS CANVAS MODEL

Key Partners

§ Partners- development tool vendors and Cloud vendors

§ Investors- provides financial support

Key Activities

§ Distribution model- no sales force

§ Positive word of mouth

Value Propositions

§ Promotion and Protection of culture.

§ Refining business model

 

Customer Relationships

§ Strong relationship- involving customers in promotion of goods

 

 

Customer Segments

§ Business to business model.

Key Resources

§  Owners- Mike Cannon-Brooks and Scott Farquhar

§  Distribution model

Channels

§  Online medium 

§ Promotion and distribution with the help of customer’s experience.

Cost Structure

§  Marketing and Selling cost - $68 million.

Revenue Streams

§ Subscription fees

§ Selling of software.

           

 Famework for identifying business drivers for the Tech Industry- Porter’s Five Forces Model

  1. Bargaining power of Suppliers- The bargaining power of the buyers is high as cloud and development tool vendors charge prices from the company according to their demands.
  2. Threat of substitutes- Various number of collaboration tools such as Wrike, Asana provided by number of Tech companies such as HubSpot, New Relic, ServiceNow etc.
  3. Competitive Rivalry- Huge competition from the tech global players such as IBM, Microsoft etc. Other competitors are HubSpot, New Relic etc.
  4. Bargaining power of buyers- High Bargaining power of Buyers in case of tech industry. Demand of clients working on SaaS is increasing that is 80% according to finance online.
  5. Threat of new entrant- In the year 2018, there are approximately, 100 new startups that joined tech industry and working on more flexible models. So, threat of new entrant in case of tech industry is high.

General Business drivers

  1. Technology- Atlassian Company works upon SaaS model with the help of services provided by development tool vendors and cloud vendors.
  2. Process- Process starts up with identifying new trends in technology industry, planning and developing agile software, marketing and price decisions and selling to clients.
  3. People- People in case of technology industry are efficient and skilled employees, Business clients and the suppliers.

Crporate Entrepreneurship and Innovation Challenges or opportunities

  1. Adopting latest technology to expand the revenue streams other than subscription fees can act as an opportunity for the business organization.
  2. Company might face challenge from changing demands and the market conditions and thus needs to adopt more flexible models.

Two core issues Affecting the Potential Performance and Implications

  1. The first issue is related to security concerns over the cloud solution of the company and competitors adopting more flexible models to deal with such issues.
  2. Second issue is ineffectiveness of business models of the company while going for public as managing 2000 employees would be different from managing 100 employees with same business model.

                                These issues can have major implications on the business of the company because if these issues are not resolved on appropriate time frame, then company might have to suffer the losses and even have to shut down its business operations.

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