Understanding Biotechnology Business Models and Managing Risk
- Resource Type
- Authors
- Craig Shimasaki
- Source
- Subject
- Process management
New business development
Artifact-centric business process model
Business rule
Business analysis
Business architecture
Business
Business process modeling
Business risks
Business transformation
- Language
Every commercial enterprise operates with an underlying business model, whether purposefully decided or arrived at by default—biotechnology companies included. Business models are simply the way in which a company makes money and the manner in which all the functions are interrelated internally and externally. Choosing the right business model is essential to ensure that a company has the best opportunity for success. The selection of a business model should be made during the inception of the company and chosen to give the future organization a strategic competitive advantage. Choosing the optimal business model is the first step to building business success and reducing the risk of failure. The entrepreneur and leadership team are the “risk managers” of the company and in order to manage them, they must know the risks they are managing. In this chapter we review business model examples used in the biotechnology industry and describe the components that make up a business model. We then discuss five segments of business risk that entrepreneurial leaders must manage in order to optimize success. The purpose of this chapter is to give the entrepreneur a better understanding of how a business model helps manage and reduce the risks of their company.