The Grounded Model

Picture: Matthew Cabret/Unsplash

18.06.2020

Thinking in business models has become a fashion in business. Business successes are presented on chic canvases in order to achieve hard business goals. The radical nature of the Corona crisis is now not only changing our way of life, but also the idea of the business world. On the one hand, the company's purpose will be much more oriented towards social and natural change. On the other hand, working on the business model will have to take the so-called soft factors of the company into account. In the future, technologies suitable for this will complement the world of business models.

The Grounded Model: A Continuous Process

New ways are needed in which the permanently changing society is taken into account in one's business and thus become an inspiring driving force for internal developments. In order to tackle this pragmatically, Marcel Aberle and his team at the Zukunftsinstitut, together with business mastermind Stephan Grabmeier and under the scientific direction of Prof. Dr. Stefan Tewes, Professor for Digital Transformation and Innovation at the FOM Hochschule für Oekonomie & Management, developed the Grounded Model, a business model of the future. A business model, that is intended to help companies shape and design their own business – with a new connection between the inside and the outside of the business.

The Grounded Model is guided by the complexity of the world. It "thinks" in feedback loops and large contexts. It sees the development of business models as an ongoing process, not a one-off activity. We are convinced that models of the future have to contain a future dynamic. These dynamics come from the contexts of nature, individuals and society at large. From there it enters into the markets and can subsequently be translated into business. If your starting point is the business, you will fall short.

The grounded model goes a few steps further than conventional business models – it frees itself from the shackles of a pure management driven perspective. It includes "the world" and thus becomes more holistic and complex – on the basis of valid research methodology. This makes it possible to integrate empirical relationships – and to give clear instructions for action.

The Grounded Model: How it works

The Grounded Model serves to develop fundamental, profound and effective decisions in social systems. The grounded solution of complex problems is based on the delimitation from the inside and the outside (context space of the reference point). There are two ways of connecting these systems in the media space: Both the structural connection via the linguistic message as well as the connection via money are necessary to maintain these systems.

In order to generate more profound solutions with maximum effect (moves), conceptual terms (codes), denser code clusters or bundles of related codes (categories) with a higher degree of abstraction, are developed. The leverage of the most effective core category results from the density and saturation of the media & context space.