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The RCOV Model

The RCOV model (Resources, Competences, Organization, and Value) was proposed by Benoît Demil and Xavier Lecocq in their paper published in 2010 titled “Business Model Evolution: In Search of Dynamic Consistency”. The model was created to help describe and analyze the dynamics of business model innovation and evolution, by focusing on four main components:

  1. Resources: This includes everything a company can use to create its value proposition. This can include physical, financial, human, intellectual assets, etc.

  2. Competences: These are the distinctive capabilities of the company, i.e., what it does better than its competitors. This could include technical skills, marketing skills, management skills, etc.

  3. Organization: This represents how the company organizes its resources and competences to create value. This can include the company’s structure, processes, routines, etc.

  4. Value: This is the company’s value proposition, i.e., what it offers to its customers that is unique and valuable to them.

By using this model, business leaders can analyze and design their business model by examining how these four components interconnect and mutually support each other.

Legacy

The RCOV model has been influential in the field of business model research, especially in exploring the dynamics of business model innovation and evolution. It provided a framework for analyzing and understanding how business models adapt and evolve over time in response to changes in the business environment.

The model’s influence is evident in the number of subsequent works that have cited it and used it as a basis for further research. The RCOV model has been applied in various industries and contexts, highlighting its flexibility and applicability. It has also influenced the development of other business model frameworks and has been used in combination with other models for comprehensive business analysis.

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Page last modified: 2024-11-13 14:01:29