Introduction to Fundamentals of Business

We began our discussion with a few social media facts - there are 800 million people on Facebook and around 60 million people in the UK at this moment. Considering the sheer volume of people worldwide using social media sites we can safely say that things are changing rapidly.

With this, we then moved on to consider the difference between innovation and entrepreneurship. Entrepreneurship is an approach, an attitude, an activity; it's impulsive. Whereas innovation is a process, it's incremental.

Following this, we were shown the definition of a business model: "A business model describes the value an organization offers to various customers. Portrays the capabilities, and partners required for creating, marketing and delivering this value and relationship capital with the goal or generating profitable and sustainable revenue streams." Breaking this definition down we established that a successful business model should show how your business will generate profit and it should simply be by earning more than you spend. This lead us to consider 'value proposition' meaning where is the value in your business? Bringing the discussion back to social media, our first thought was that it's entertaining. We soon realised that the value of these social media sites is not in it's content but in its connections! They connect people and here lies the real value. The value proposition is not always what is important, but what us precious and rare.