Business Fundamentals: Functions and Innovation

A business model describes how a company creates, delivers, and captures value, while a business plan is a document that outlines how the business will achieve its specific goals. They are distinct concepts.

Shareholders are a specific type of stakeholder (those who own shares), but stakeholders include a much broader group, such as employees, customers, and suppliers.

This concept, known as creative destruction, describes how innovation replaces outdated technologies or business models with new ones.

The standard innovation process follows the sequence of invention (creating the idea), innovation (applying it), and diffusion (spreading it in the market).

Ideas themselves are generally not protectable by intellectual property law until they are expressed in a tangible form, such as a patent, copyright, or trademark. Therefore, the abstract concept of an idea cannot be protected.

Every business venture begins with an initial concept or idea. While building prototypes, hiring, and registration are essential steps, they all follow the conceptualization phase.