Why management models are crucial to the success of business models

• Published in: Strategy & leadership Vol. 49; no. 2; pp. 9 - 13
• Main Author: Denning, Stephen
• Format: Journal Article
• Language: English
• Published: Chicago Emerald Publishing Limited 07-07-2021; Emerald Group Publishing Limited
• Subjects: 20th century; 21st century; Business models; Corporate culture; Customers; Innovations; Stockholders; Success; Wadhwa, Vivek; 20th century management model; digital winners; Organizational culture; business model; customer creation; 21st century management model
• ISSN: 1087-8572; 1758-9568
• DOI: 10.1108/SL-02-2021-0011

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.