TRADITIONAL BUSINESS MODEL
Hire. Pay. Operate.
- A business hires people for defined roles.
- Employees receive agreed compensation, usually salary or wages.
- The organization generally owns or controls its internal processes and assets.
- Access to external capabilities often requires additional contracts, purchases, or partnerships.
- Business costs, responsibilities, and risks are managed within defined organizational boundaries.
This model can be effective and remains essential in many situations. However, its organizational boundaries can make it harder to share knowledge, capabilities, and benefits across independent participants.
