The Modern Day Business Model
Sallie Pilot explores the increasing importance of defined business models in relation to the current corporate agenda.
Of all the regulatory changes to have influenced corporate reporting in recent years, the requirement for listed companies to explain their business model has had one of the greatest impacts. Indeed, following the new provision within the UK Corporate Governance Code, plus similar recommendations from the Financial Reporting Council (FRC) and International Integrated Reporting Council (IIRC), the value and definition of the business model has become a major topic of discussion and has soared up the corporate agenda.
Black Sun has been following the evolution of the business model in corporate reporting through its research, and has found that an increasing number of companies are now thinking about how to report their buisiness model, and are dedicating more time and effort within their Annual Report to articulate its relevance and role. 84% of FTSE 100 companies now use the phrase 'business model' (up from 42% in 2009), and more and more companies are coming to view their business model as an opportunity to communicate key differentiators and competitive advantage.
To explore the findings and see the full article please go to Chartered Secretary: The Modern Day Business Model