New Business Models for Mining Industries

Abstract

Joan Magretta, now a Senior Institute Associate at Harvard Business School's Institute for Strategy and Competitiveness explains a business model as having two parts: "Part one includes all the activities associated with making something: designing it, purchasing raw materials, producing, manufacturing, and so on. Part two includes all the activities associated with selling something: finding and reaching customers, transacting a sale, distributing the product, extracting as much value as possible or delivering the service. A new business model may turn on designing a new product for an unmet need or on a process innovation. That is it may be new in either end.”