Business model design
Encyclopedia
Business model design refers to the activity of designing a company's business model
. It is part of the business development
and business strategy process and involves design methods
.
Business model design includes the modeling and description of a company's:
Business model design is distinct from business modeling
. The former refers to defining the business logic of a company at the strategic level, whereas the latter refers to business process
design at the operational level.
A business model design template can facilitate the process of designing and describing a company's business model.
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
. It is part of the business development
Business development
A subset of the field of commerce, business development comprises a number of techniques and responsibilities which aim at:1. Researching new types of business/products/services with an emphasis on identifying gaps in the mitigation of needs of potential clients .2. Attracting new customers3...
and business strategy process and involves design methods
Design methods
Design Methods is a broad area that focuses on:* Divergence – Exploring possibilities and constraints of inherited situations by applying critical thinking through qualitative and quantitative research methods to create new understanding toward better design solutions* Transformation – Redefining...
.
Business model design includes the modeling and description of a company's:
- value propositionValue propositionA value proposition is a promise of value to be delivered and a belief from the customer of value that will be experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services....
s - target customer segments
- distribution channels
- customer relationships
- value configurations
- core capabilities
- partner network
- cost structure
- revenue model
Business model design is distinct from business modeling
Business process modeling
Business Process Modeling in systems engineering is the activity of representing processes of an enterprise, so that the current process may be analyzed and improved. BPM is typically performed by business analysts and managers who are seeking to improve process efficiency and quality...
. The former refers to defining the business logic of a company at the strategic level, whereas the latter refers to business process
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
design at the operational level.
A business model design template can facilitate the process of designing and describing a company's business model.
See also
- Enterprise ArchitectureEnterprise architectureAn enterprise architecture is a rigorous description of the structure of an enterprise, which comprises enterprise components , the externally visible properties of those components, and the relationships between them...
- Business Model CanvasBusiness Model CanvasThe Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances...
- Business planBusiness planA business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals....
- Component business modelComponent business modelComponent Business Model is a technique developed by IBM to model and analyze an enterprise. It is a logical representation or map of business components or "building blocks" and can be depicted on a single page...
- MarketingMarketingMarketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
- Strategic managementStrategic managementStrategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments...
- Strategic planningStrategic planningStrategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues...
- Value migrationValue migrationIn marketing, value migration is the shifting of value-creating forces. Value migrates from outmoded business models to business designs that are better able to satisfy customers' priorities....