Business model - wikipedia Business model Business administration Management of a business Accounting Management accounting Financial accounting Financial audit Business entities Cooperative Corporation Limited liability company Partnership Sole proprietorship State - owned enterprise Corporate governance Annual general meeting Board of directors Supervisory board Advisory board Audit committee Corporate law Commercial law Constitutional documents Contract Corporate crime Corporate liability Insolvency law International trade law Mergers and acquisitions Economics Commodity Public economics Labour economics Development economics International economics Mixed economy Planned economy Econometrics Environmental economics Open economy Market economy Knowledge economy Microeconomics Macroeconomics Economic development Economic statistics Finance Financial statement Insurance Factoring Cash conversion cycle Insider dealing Capital budgeting Commercial bank Derivative Financial statement analysis Financial risk Public finance Corporate finance Managerial finance International finance Liquidation Stock market Financial market Tax Financial institution Working capital Venture capital Marketing Marketing Marketing research Public relations Sales Types of management Asset Brand Business intelligence Business development Capacity Change innovation Commercial marketing Communications Conflict Content Customer relationship Distributed Earned value Electronic business Enterprise resource planning management information system Financial Human resource development Incident Integrated Knowledge Materials Network administrator Office Operations services Performance Power Problem Process Product life - cycle Product Project Quality Records Resource Risk crisis Sales Security Service Strategic Supply chain Systems administrator Talent Technology Organization Architecture Behavior Communication Culture Conflict Development Engineering Hierarchy Patterns Space Structure Trade Business analysis Business ethics Business plan Business judgment rule Consumer behaviour Business operations International business Business model International trade Business process Business statistics Business and economics portal Strategy Major dimensions Strategy Strategic management Military strategy Maritime strategy Strategic planning Game theory Strategic studies Strategic thinking Major thinkers Michael Porter Rita Gunther McGrath Bruce Henderson Gary Hamel Candace A. Yano C.K. Prahalad Jim Collins Liddell Hart Carl von Clausewitz Sun Tzu Julian Corbett Alfred Thayer Mahan J.C. Wylie Adrian Slywotzky Sharon Oster Chris Zook Henry Mintzberg Clay Christensen Concepts Business model Competitive advantage Experience curve Value chain Portfolio theory Core competency Generic strategies Uberisation Sharing economy Frameworks and tools SWOT Five forces Balanced scorecard PEST analysis Growth -- share matrix A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture. Contents 1 Context 2 Definition 3 History 4 Theoretical and empirical insights 4.1 Design logic and narrative coherence 4.2 Complementarities between partnering firms 5 Categorization 5.1 Shift from pipes to platforms 5.2 Platform 6 Applications 7 Design 7.1 Definitions 7.1. 1 Economic consideration 7.1. 2 Component consideration 7.1. 3 Strategic outcome 8 Definitions of design or development 8.1 Design themes emphasis 8.2 Design content emphasis 9 Examples 10 Frameworks 11 Related concepts 12 See also 13 References 14 Further reading 15 External links Context The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey defines business models as the design of organizational structures to enact a commercial opportunity. Further extensions to this design logic emphasize the use of narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms. Business models are used to describe and classify businesses, especially in an entrepreneurial setting, but they are also used by managers inside companies to explore possibilities for future development. Well - known business models can operate as `` recipes '' for creative managers. Business models are also referred to in some instances within the context of accounting for purposes of public reporting. Definition A business model is an `` abstract representation of a business, be it conceptual, textual, and / or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and / or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives. '' This definition by the authors Al - Debei, El - Haddadeh and Avison ( 2008 ) indicates that value proposition, value architecture ( the organizational infrastructure and technological architecture that allows the movement of products, services, and information ), value finance ( modeling information related to total cost of ownership, pricing methods, and revenue structure ), and value network articulate the primary constructs or dimensions of business models. History Over the years, business models have become much more sophisticated. The bait and hook business model ( also referred to as the `` razor and blades business model '' or the `` tied products business model '' ) was introduced in the early 20th century. This involves offering a basic product at a very low cost, often at a loss ( the `` bait '' ), then charging compensatory recurring amounts for refills or associated products or services ( the `` hook '' ). Examples include : razor ( bait ) and blades ( hook ) ; cell phones ( bait ) and air time ( hook ) ; computer printers ( bait ) and ink cartridge refills ( hook ) ; and cameras ( bait ) and prints ( hook ). A variant of this model is Adobe, a software developer that gives away its document reader free of charge but charges several hundred dollars for its document writer. In the 1950s, new business models came from McDonald 's Restaurants and Toyota. In the 1960s, the innovators were Wal - Mart and Hypermarkets. The 1970s saw new business models from FedEx and Toys R Us ; the 1980s from Blockbuster, Home Depot, Intel, and Dell Computer ; the 1990s from Southwest Airlines, Netflix, eBay, Amazon.com, and Starbucks. Today, the type of business models might depend on how technology is used. For example, entrepreneurs on the internet have also created entirely new models that depend entirely on existing or emergent technology. Using technology, businesses can reach a large number of customers with minimal costs. In addition, the rise of outsourcing and globalization has meant that business models must also account for strategic sourcing, complex supply chains and moves to collaborative, relational contracting structures. Theoretical and Empirical insights Design logic and narrative coherence Design logic views the business model as an outcome of creating new organizational structures or changing existing structures to pursue a new opportunity. Gerry George and Adam Bock ( 2011 ) conducted a comprehensive literature review and surveyed managers to understand how they perceived the components of a business model. In that analysis these authors show that there is a design logic behind how entrepreneurs and managers perceive and explain their business model. In further extensions to the design logic, George and Bock ( 2012 ) use case studies and the IBM survey data on business models in large companies, to describe how CEOs and entrepreneurs create narratives or stories in a coherent manner to move the business from one opportunity to another. They also show that when the narrative is incoherent or the components of the story are misaligned, that these businesses tend to fail. They recommend ways in which the entrepreneur or CEO can create strong narratives for change. Complementarities between partnering firms Berglund and Sandström ( 2013 ) argued that business models should be understood from an open systems perspective as opposed to being a firm - internal concern. Since innovating firms do not have executive control over their surrounding network, business model innovation tends to require soft power tactics with the goal of aligning heterogeneous interests. In a study of collaborative research and external sourcing of technology, Hummel et al. ( 2010 ) similarly found that in deciding on business partners, it is important to make sure that both parties ' business models are complementary. For example, they found that it was important to identify the value drivers of potential partners by analyzing their business models, and that it is beneficial to find partner firms that understand key aspects of our own firm 's business model. The University of Tennessee conducted research into highly collaborative business relationships. Researchers codified their research into a sourcing business model known as Vested ( also referred to as Vested Outsourcing ). Vested is a hybrid sourcing business model in which buyers and suppliers in an outsourcing or business relationship focus on shared values and goals to create an arrangement that is highly collaborative and mutually beneficial to each. Categorization From about 2012, some research and experimentation has theorized about a so - called `` liquid business model ''. Shift from pipes to platforms Sangeet Paul Choudary ( 2013 ) distinguishes between two broad families of business models in an article in Wired magazine. Choudary contrasts pipes ( linear business models ) with platforms ( networked business models ). In the case of pipes, firms create goods and services, push them out and sell them to customers. Value is produced upstream and consumed downstream. There is a linear flow, much like water flowing through a pipe. Unlike pipes, platforms do not just create and push stuff out. They allow users to create and consume value. Alex Moazed, founder and CEO of Applico, defines a platform as a business model that creates value by facilitating exchanges between two or more interdependent groups usually consumers and producers of a given value. As a result of digital transformation, it is the predominant business model of the 21st century. In an op - ed on MarketWatch, Choudary, Van Alstyne and Parker further explain how business models are moving from pipes to platforms, leading to disruption of entire industries. Platform There are three elements to a successful platform business model. The Toolbox creates connection by making it easy for others to plug into the platform. This infrastructure enables interactions between participants. The Magnet creates pull that attracts participants to the platform. For transaction platforms, both producers and consumers must be present to achieve critical mass. The Matchmaker fosters the flow of value by making connections between producers and consumers. Data is at the heart of successful matchmaking, and distinguishes platforms from other business models. Chen ( 2009 ) stated that the business model has to take into account the capabilities of Web 2.0, such as collective intelligence, network effects, user - generated content, and the possibility of self - improving systems. He suggested that the service industry such as the airline, traffic, transportation, hotel, restaurant, information and communications technology and online gaming industries will be able to benefit in adopting business models that take into account the characteristics of Web 2.0. He also emphasized that Business Model 2.0 has to take into account not just the technology effect of Web 2.0 but also the networking effect. He gave the example of the success story of Amazon in making huge revenues each year by developing an open platform that supports a community of companies that re-use Amazon 's on - demand commerce services. Applications Malone et al. found that some business models, as defined by them, indeed performed better than others in a dataset consisting of the largest U.S. firms, in the period 1998 through 2002, while they did not prove whether the existence of a business model mattered. In the context of the Software - Cluster, which is funded by the German Federal Ministry of Education and Research, a business model wizard for software companies has been developed. It supports the design and analysis of software business models. The tool 's underlying concept and data were published in various scientific publications. The concept of a business model has been incorporated into certain accounting standards. For example, the International Accounting Standards Board ( IASB ) utilizes an `` entity 's business model for managing the financial assets '' as a criterion for determining whether such assets should be measured at amortized cost or at fair value in its financial instruments accounting standard, IFRS 9. In their 2013 proposal for accounting for financial instruments, the Financial Accounting Standards Board also proposed a similar use of business model for classifying financial instruments. The concept of business model has also been introduced into the accounting of deferred taxes under International Financial Reporting Standards with 2010 amendments to IAS 12 addressing deferred taxes related to investment property. Both IASB and FASB have proposed using the concept of business model in the context of reporting a lessor 's lease income and lease expense within their joint project on accounting for leases. In its 2016 lease accounting model, IFRS 16, the IASB chose not to include a criterion of `` stand alone utility '' in its lease definition because `` entities might reach different conclusions for contracts that contain the same rights of use, depending on differences between customers ' resources or suppliers ' business models. '' The concept has also been proposed as an approach for determining the measurement and classification when accounting for insurance contracts. As a result of the increasing prominence the concept of business model has received in the context of financial reporting, the European Financial Reporting Advisory Group ( EFRAG ), which advises the European Union on endorsement of financial reporting standards, commenced a project on the `` Role of the Business Model in Financial Reporting '' in 2011. Design Business model design generally 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. Massa and Tucci ( 2014 ) highlighted the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when the tooling company Hilti shifted from selling its tools to a leasing model. They suggested that the differences are so profound ( for example, lack of resource in the former case and inertia and conflicts with existing configurations and organisational structures in the latter ) that it could be worthwhile to adopt different terms for the two. They suggest business model design to refer to the process of crafting a business model when none is in place and business model reconfiguration for process of changing an existing business model, also highlighting that the two process are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model. Definitions Al - Debei and Avison ( 2010 ) define a business model as an abstract representation of an organization. This may be conceptual, textual, and / or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well all core products and / or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives. This definition indicates that value proposition, value architecture, value finance, and value network articulate the primary constructs or dimensions of business models. Economic consideration Al - Debei and Avison ( 2010 ) consider value finance as one of the main dimensions of BM which depicts information related to costing, pricing methods, and revenue structure. Stewart and Zhao ( 2000 ) defined the business model as a statement of how a firm will make money and sustain its profit stream over time. Component consideration Osterwalder et al. ( 2005 ) consider the Business Model as the blueprint of how a company does business. Slywotzky ( 1996 ) regards the business model as the totality of how a company selects its customers, defines and differentiates it offerings, defines the tasks it will perform itself and those it will outsource, configures its resources, goes to market, creates utility for customers and captures profits. Strategic outcome Mayo and Brown ( 1999 ) considered the business model as the design of key interdependent systems that create and sustain a competitive business. Casadesus - Masanell and Ricart ( 2011 ) explain a business model as a set of choices ( policy, assets and governance ) and consequences ( flexible and rigid ) and underline the importance of considering how it interacts with models of other players in the industry instead of thinking of it in isolation. Definitions of design or development Zott and Amit ( 2009 ) consider business model design from the perspectives of design themes and design content. Design themes refer to the system 's dominant value creation drivers and design content examines in greater detail the activities to be performed, the linking and sequencing of the activities and who will perform the activities. Design themes emphasis Environment - Strategy - Structure - Operations ( ESSO ) Business Model Development Developing a Framework for Business Model Development with an emphasis on Design Themes, Lim ( 2010 ) proposed the Environment - Strategy - Structure - Operations ( ESSO ) Business Model Development which takes into consideration the alignment of the organization 's strategy with the organization 's structure, operations, and the environmental factors in achieving competitive advantage in varying combination of cost, quality, time, flexibility, innovation and affective. Design content emphasis Business model design includes the modeling and description of a company 's : value propositions target customer segments distribution channels customer relationships value configurations core capabilities commercial network partner network cost structure revenue model A business model design template can facilitate the process of designing and describing a company 's business model. Daas et al. ( 2012 ) developed a decision support system ( DSS ) for business model design. In their study a decision support system ( DSS ) is developed to help SaaS in this process, based on a design approach consisting of a design process that is guided by various design methods. Examples In the early history of business models it was very typical to define business model types such as bricks - and - mortar or e-broker. However, these types usually describe only one aspect of the business ( most often the revenue model ). Therefore, more recent literature on business models concentrate on describing a business model as a whole, instead of only the most visible aspects. The following examples provide an overview for various business model types that have been in discussion since the invention of term business model : Bricks and clicks business model Business model by which a company integrates both offline ( bricks ) and online ( clicks ) presences. One example of the bricks - and - clicks model is when a chain of stores allows the user to order products online, but lets them pick up their order at a local store. Collective business models Business system, organization or association typically composed of relatively large numbers of businesses, tradespersons or professionals in the same or related fields of endeavor, which pools resources, shares information or provides other benefits for their members. For example, a science park or high - tech campus provides shared resources ( e.g. cleanrooms and other lab facilities ) to the firms located on its premises, and in addition seeks to create an innovation community among these firms and their employees. Cutting out the middleman model The removal of intermediaries in a supply chain : `` cutting out the middleman ''. Instead of going through traditional distribution channels, which had some type of intermediate ( such as a distributor, wholesaler, broker, or agent ), companies may now deal with every customer directly, for example via the Internet. Direct sales model Direct selling is marketing and selling products to consumers directly, away from a fixed retail location. Sales are typically made through party plan, one - to - one demonstrations, and other personal contact arrangements. A text book definition is : `` The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs. '' Distribution business models, various Fee in, free out Business model which works by charging the first client a fee for a service, while offering that service free of charge to subsequent clients. Franchise Franchising is the practice of using another firm 's successful business model. For the franchisor, the franchise is an alternative to building ' chain stores ' to distribute goods and avoid investment and liability over a chain. The franchisor 's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Sourcing business model Sourcing Business Models are a systems - based approach to structuring supplier relationships. A sourcing business model is a type of business model that is applied to business relationships where more than one party needs to work with another party to be successful. There are seven sourcing business models that range from the transactional to investment - based. The seven models are : Basic Provider, Approved Provider, Preferred Provider, Performance - Based / Managed Services Model, Vested outsourcing Business Model, Shared Services Model, and Equity Partnership Model. Sourcing business models are targeted for procurement professionals who seek a modern approach to achieve the best fit between buyers and suppliers. Sourcing business model theory is based on a collaborative research effort by the University of Tennessee ( UT ), the Sourcing Industry Group ( SIG ) ( 1 ), the Center for Outsourcing Research and Education ( CORE ) ( 2 ), and the International Association for Contracts and Commercial Management ( IACCM ). This research formed the basis for the 2016 book, Strategic Sourcing in the New Economy : Harnessing the Potential of Sourcing Business Models in Modern Procurement. Freemium business model Business model that works by offering basic Web services, or a basic downloadable digital product, for free, while charging a premium for advanced or special features. Pay what you can ( PWYC ) A non-profit or for - profit business model which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them. It is often used as a promotional tactic, but can also be the regular method of doing business. It is a variation on the gift economy and cross-subsidization, in that it depends on reciprocity and trust to succeed. `` Pay what you want '' ( PWYW ) is sometimes used synonymously, but `` pay what you can '' is often more oriented to charity or socially oriented uses, based more on ability to pay, while `` pay what you want '' is often more broadly oriented to perceived value in combination with willingness and ability to pay. Value - added reseller model Value Added Reseller is a model where a business makes something which is resold by other businesses but with modifications which add value to the original product or service. These modifications or additions are mostly industry specific in nature and are essential for the distribution. Businesses going for a VAR model have to develop a VAR network. It is one of the latest collaborative business models which can help in faster development cycles and is adopted by many Technology companies especially software. Other examples of business models are : Auction business model All - in - one business model Chemical leasing Low - cost carrier business model Loyalty business models Monopolistic business model Multi-level marketing business model Network effects business model Online auction business model Online content business model Online media cooperative Premium business model Professional open - source model Pyramid scheme business model Razor and blades model Servitization of products business model Subscription business model Frameworks Technology centric communities have defined `` frameworks '' for business modeling. These frameworks attempt to define a rigorous approach to defining business value streams. It is not clear, however, to what extent such frameworks are actually important for business planning. Business model frameworks represent the core aspect of any company ; they involve `` the totality of how a company selects its customers defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resource, goes to market, creates utility for customers, and captures profits ''. A business framework involves internal factors ( market analysis ; products / services promotion ; development of trust ; social influence and knowledge sharing ) and external factors ( competitors and technological aspects ). A review on business model frameworks can be found in Krumeich et al. ( 2012 ). In the following some frameworks are introduced. Business reference model Business reference model is a reference model, concentrating on the architectural aspects of the core business of an enterprise, service organization or government agency. Component business model 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. It can be used to analyze the alignment of enterprise strategy with the organization 's capabilities and investments, identify redundant or overlapping business capabilities, etc. Although Webvan failed in its goal of disintermediating the North American supermarket industry, several supermarket chains ( like Safeway Inc. ) have launched their own delivery services to target the niche market to which Webvan catered. Industrialization of services business model Business model used in strategic management and services marketing that treats service provision as an industrial process, subject to industrial optimization procedures Business Model Canvas Developed by A. Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, the business model canvas is one of the most used frameworks for describing the elements of business models. OGSM The OGSM is developed by Marc van Eck and Ellen van Zanten of Business Openers into the ' Business plan on 1 page '. Translated in several languages all over the world. # 1 Management book in The Netherlands in 2015. The foundation of Business plan on 1 page is the OGSM. Objectives, Goals, Strategies and Measures ( dashboard and actions ). Related concepts The process of business model design is part of business strategy. Business model design and innovation refer to the way a firm ( or a network of firms ) defines its business logic at the strategic level. In contrast, firms implement their business model at the operational level, through their business operations. This refers to their process - level activities, capabilities, functions and infrastructure ( for example, their business processes and business process modeling ), their organisational structures ( e.g. organigrams, workflows, human resources ) and systems ( e.g. information technology architecture, production lines ). Consequently, an operationally viable and feasible business model requires lateral alignment with the underlining business operations. The brand is a consequence of the business model and has a symbiotic relationship with it, because the business model determines the brand promise, and the brand equity becomes a feature of the model. Managing this is a task of integrated marketing. The standard terminology and examples of business models do not apply to most nonprofit organizations, since their sources of income are generally not the same as the beneficiaries. The term ' funding model ' is generally used instead. The model is defined by the organization 's vision, mission, and values, as well as sets of boundaries for the organization -- what products or services it will deliver, what customers or markets it will target, and what supply and delivery channels it will use. While the business model includes high - level strategies and tactical direction for how the organization will implement the model, it also includes the annual goals that set the specific steps the organization intends to undertake in the next year and the measures for their expected accomplishment. Each of these is likely to be part of internal documentation that is available to the internal auditor. See also Wikimedia Commons has media related to Business models. Business rule Concept - driven strategy Enterprise architecture Growth platforms Institutional logic Market structure Marketing plan Sensemaking Strategy dynamics Strategy Markup Language The Design of Business Value migration References ^ Jump up to : Business Model Generation, Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self - published, 2010 ^ Jump up to : George, G and Bock AJ. 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35 ( 1 ) : 83 - 111 ^ Jump up to : George, G and Bock AJ. 2012. Models of opportunity : How entrepreneurs design firms to achieve the unexpected. Cambridge University Press, ISBN 978 - 0 - 521 - 17084 - 0 Jump up ^ Baden - Fuller, Charles ; Mary S. Morgan ( 2010 ). `` Business Models as Models ''. Long Rang Planning. 43 ( 2 / 3 ) : 156 -- 171. ^ Jump up to : Al - Debei, M.M., El - Haddadeh, R., & Avison, D. ( 2008 ). `` Defining the business model in the new world of digital business. '' In Proceedings of the Americas Conference on Information Systems ( AMCIS ) ( Vol. 2008, pp. 1 - 11 ). Jump up ^ Strategy markup language ( StratML ) -- Part 1 : StratML core elements ( ISO 17469 - 1 ) is an international standard for the documentation of strategic goals and objectives. ^ Jump up to : Al - Debei, M.M., & Avison, D. ( 2010 ). Developing a unified framework of the business model concept. European Journal of Information Systems, 19 ( 3 ), 359 - 376. Jump up ^ Baden - Fuller, Charles ; Mangematin, Vincent ( 2013 - 11 - 01 ). `` Business models : A challenging agenda ''. Strategic Organization. 11 ( 4 ) : 418 -- 427. doi : 10.1177 / 1476127013510112. ISSN 1476 - 1270. Jump up ^ Unpacking Sourcing Business Models : 21st Century Solutions for Sourcing Services, The University of Tennessee, 2014 Jump up ^ Berglund, Henrik ; Sandström, C ( 2013 ). `` Business model innovation from an open systems perspective : structural challenges and managerial solutions ''. International Journal of Product Development. 8 ( 3 / 4 ) : 274 -- 2845. Jump up ^ Karl M. Popp & Ralf Meyer ( 2010 ). Profit from Software Ecosystems : Business Models, Ecosystems and Partnerships in the Software Industry. Norderstedt, Germany : BOD. ISBN 3 - 8391 - 6983 - 6. Jump up ^ Hummel, E., G. Slowinski, S. Matthews, and E. Gilmont. 2010. Business models for collaborative research. Research Technology Management 53 ( 6 ) 51 - 54. Jump up ^ Vitasek, Kate. Vested Outsourcing : Five Rules that will Transform Outsourcing '' ( New York : Palgrave Macmillan, 2012 ) ISBN 978 - 1 - 137 - 29719 - 8 Jump up ^ Pedersen, Kristian Bonde ; Svarre, Kristoffer Rose ; Slepniov, Dmitrij ; Lindgren, Peter. `` Global Business Model -- a step into a liquid business model '' ( PDF ). Jump up ^ Henning, Dietmar ( 2012 - 02 - 11 ). `` IBM launches new form of day - wage labour ''. World Socialist Web Site. International Committee of the Fourth International ( ICFI ). Retrieved 2015 - 02 - 24. The `` liquid '' model now being pursued is not limited to IBM. (... ) It is no accident that IBM is looking to Germany as the country to pilot this model. Since the Hartz welfare and labour `` reforms '' of the former Social Democratic Party - Green government ( 1998 - 2005 ), Germany is at the forefront in developing forms of precarious employment. (... ) The IBM model globalises the so - called employment contract, increasingly replacing agency working as the preferred form of low - wage labour. Companies assign key tasks to subcontractors, paying only for each project. Jump up ^ Why Business Models fail : Pipes vs. Platforms, Sangeet Paul Choudary, Wired Magazine Jump up ^ `` What is a Platform '' by Alex Moazed on May 1, 2016 Jump up ^ What Twitter knows that Blackberry did n't, Choudary, Van Alstyne, Parker, MarketWatch Jump up ^ `` Three elements of a successful platform ''. January 31, 2013., Sangeet Paul Choudary, Harvard Business Review Jump up ^ Chen, T.F. 2009. Building a platform of Business Model 2.0 to creating real business value with Web 2.0 for web information services industry. International Journal of Electronic Business Management 7 ( 3 ) 168 - 180. Jump up ^ Do Some Business Models Perform Better than Others ?, Malone et al., May 2006 Jump up ^ software-business-model.com Jump up ^ International Financial Reporting Standard 9 : Financial Instruments. International Accounting Standards Board. October 2010. p. A312. Jump up ^ `` The beginning of the end for IAS 39 - Issue of IFRS 9 regarding Classification and Measurement of Financial Assets ''. Deloitte & Touche. November 2009. Retrieved 2011 - 06 - 03. Jump up ^ `` Business Models Matter ( for Accounting, That Is ) ''. cfo.com. Retrieved 2011 - 06 - 03. Jump up ^ `` An optimist sees the opportunity in every difficulty : is IFRS 9 an opportunity or a difficulty ? ''. Ernst & Young. December 2010. Archived from the original on 2012 - 04 - 05. Retrieved 2011 - 06 - 03. Jump up ^ `` FASB Exposure Draft : Recognition and Measurement of Financial Assets and Financial Liabilities ''. Financial Accounting Standards Board. April 12, 2013. p. 174. Retrieved 2013 - 06 - 11. Jump up ^ International Accounting Standard 12 : Income Taxes. International Accounting Standards Board. December 31, 2010. p. A508. Jump up ^ `` IASB issues amendments to IAS 12 '' ( PDF ). Deloitte & Touche. January 2010. Retrieved 2011 - 06 - 03. Jump up ^ `` Amendments to IAS 12 : Income Taxes '' ( PDF ). Ernst & Young. December 2010. Retrieved 2011 - 06 - 03. Jump up ^ `` Exposure Draft : Leases '' ( PDF ). International Accounting Standards Board. August 2010. p. 31. Retrieved 2011 - 06 - 03. Jump up ^ `` Exposure Draft : Leases ''. Financial Accounting Standards Board. August 17, 2010. p. 29. Archived from the original on 2011 - 04 - 08. Retrieved 2011 - 06 - 03. Jump up ^ `` Project Update : Leases -- Joint Project of the FASB and the IASB ''. Financial Accounting Standards Board. August 1, 2012. Retrieved 2012 - 08 - 02. Jump up ^ `` Exposure Draft : Leases '' ( PDF ). International Accounting Standards Board. May 2013. p. 30. Retrieved 2013 - 06 - 11. Jump up ^ `` FASB Exposure Draft : Leases ''. Financial Accounting Standards Board. May 16, 2013. p. 82. Retrieved 2013 - 06 - 11. Jump up ^ IFRS 16 Leases : Basis for Conclusions. International Accounting Standards Board. January 2016. p. 39. Jump up ^ `` Application of business model to insurance contracts '' ( PDF ). HUB global insurance group. Archived from the original ( PDF ) on 2011 - 07 - 23. Retrieved 2011 - 06 - 03. Jump up ^ `` FASB Education Session - Insurance Contracts : PricewaterhouseCoopers Summary of the Meeting '' ( PDF ). PricewaterhouseCoopers. February 9, 2010. Retrieved 2011 - 06 - 03. Jump up ^ `` EFRAG calls for candidates for an Advisory Panel on the proactive project on the Role of the Business Model in Financial Reporting ''. European Financial Reporting Advisory Group. December 15, 2010. Retrieved 2011 - 06 - 03. Jump up ^ Massa, L., & Tucci, C.L. 2014. Business model innovation. In M. Dodgson, D.M. Gann & N. Phillips ( Eds. ), The Oxford handbook of innovation management : 420 -- 441. Oxford, UK : Oxford University Press. Jump up ^ Lee, G.K. and R.E. Cole. 2003. Internet Marketing, Business Models and Public Policy. Journal of Public Policy and Marketing 19 ( Fall ) 287 - 296. Jump up ^ Osterwalder, A., Pigneur, Y. and C.L. Tucci. 2005. Clarifying Business Models : Origins, Present, and Future of the Concept. Communications of the Association for Information Systems 16 1 - 40. Jump up ^ Slywotzky, A.J. 1996. Value Migration : How to Think Several Moves Ahead of the Competition. Boston ( MA ) : Harvard Business Review Press. Jump up ^ Mayo, M.C. and G.S. Brown. 1999. Building a Competitive Business Model. Ivey Business Journal63 ( 3 ) 18 - 23. Jump up ^ `` How to Design a Winning Business Model ''. Harvard Business Review. Retrieved 2016 - 11 - 23. Jump up ^ Zott, C. and R. Amit. 2009. Business Model Design : An Activity System Perspective. Long Range Planning 43 216 - 226 Jump up ^ Lim, M. 2010. Environment - Strategy - Structure - Operations ( ESSO ) Business Model. Knowledge Management Module at Bangor University, Wales. Jump up ^ Daas, D., Hurkmans, T., Overbeek, S. and Bouwman, H. 2012. Developing a decision support system for business model design. Electronic Markets - The International Journal on Networked Business, published Online 29. Dec. 2012. Jump up ^ M van der Borgh, M Cloodt & AGL Romme ( 2012 ). Value creation by knowledge - based ecosystems : Evidence from a field study. R&D Management, vol. 42 : 150 - 169. Jump up ^ Michael A. Belch George E. Belch Advertising and Promotion : An Integrated Marketing Communications Perspective, 7 / e., McGraw - Hill / Irwin, 2006 Jump up ^ Keith, Bonnie, et. al., ( 2016 ). Strategic Sourcing in the New Economy : Harnessing the Potential of Sourcing Business Models for Modern Procurement ( 1st ed. ). New York : Palgrave Macmillan. ISBN 978 - 1137552181. Jump up ^ JLM de la Iglesia, JEL Gayo, `` Doing business by selling free services ''. Web 2.0 : The Business Model, 2008. Springer Jump up ^ Gergen, Chris ; Gregg Vanourek ( December 3, 2008 ). `` The ' pay as you can ' cafe ''. The Washington Times. Retrieved 2009 - 03 - 10. Jump up ^ Mantzaris, Anna ( April 2008 ). `` Pay - what - you - like Restaurants ''. Budget Travel. Retrieved 2009 - 03 - 10. Jump up ^ Tyrangiel, Josh ( October 1, 2007 ). `` Radiohead Says : Pay What You Want ''. Time Magazine. Retrieved 2009 - 03 - 10. Jump up ^ `` Pay What You Can ''. Alley Theatre. Retrieved 2009 - 03 - 10. Jump up ^ Slywotzky, A.J. ( 1996 ). Value Migration : How to Think Several Moves Ahead of the Competition. Boston, MA : Harvard Business School Press. Jump up ^ Ferri Fernando, D'Andrea Alessia, Grifoni Patrizia ( 2012 ). IBF : An Integrated Business Framework for Virtual Communities in Journal of electronic commerce in organizations ; IGI Global, Hershey ( Stati Uniti d'America ) Jump up ^ J. Krumeich, T. Burkhart, D. Werth, and P. Loos. Towards a Component - based Description of Business Models : A State - of - the - Art Analysis. Americas Conference on Information Systems ( AMCIS 2012 ) Proceedings. Paper 19. http://aisel.aisnet.org/amcis2012/proceedings/EBusiness/19 Jump up ^ The Business Model Ontology - A Proposition In A Design Science Approach Jump up ^ `` Solaimani, S. 2014. The alignment of Business Model and Business Operations within Networked Enterprise Environments. PhD Dissertation, Delft University of Technology, The Netherlands. '' Jump up ^ William Foster, Peter Kim, Barbara Christiansen. Ten Nonprofit Funding Models, Stanford Social Innovation Review. 2009 - 03 - 05. Further reading A. Afuah and C. Tucci, Internet Business Models and Strategies, Boston, McGraw Hill, 2003. T. Burkhart, J. Krumeich, D. Werth, and P. Loos, Analyzing the Business Model Concept -- A Comprehensive Classification of Literature, Proceedings of the International Conference on Information Systems ( ICIS 2011 ). Paper 12. http://aisel.aisnet.org/icis2011/proceedings/generaltopics/12 H. Chesbrough and R.S. Rosenbloom, The Role of the Business Model in capturing value from Innovation : Evidence from XEROX Corporation 's Technology Spinoff Companies., Boston, Massachusetts, Harvard Business School, 2002. Dick Costolo, Business Models, Marc Fetscherin and Gerhard Knolmayer, Focus Theme Articles : Business Models for Content Delivery : An Empirical Analysis of the Newspaper and Magazine Industry, International Journal on Media Management, Volume 6, Issue 1 & 2 September 2004, pages 4 -- 11, September 2004. George, G., Bock, AJ. Models of opportunity : How entrepreneurs design firms to achieve the unexpected. Cambridge University Press, 2012, ISBN 978 - 0 - 521 - 17084 - 0. J. Gordijn, Value - based Requirements Engineering - Exploring Innovative e-Commerce Ideas, Amsterdam, Vrije Universiteit, 2002. G. Hamel, Leading the revolution., Boston, Harvard Business School Press, 2000. J. Linder and S. Cantrell, Changing Business Models : Surveying the Landscape, Accenture Institute for Strategic Change, 2000. Lindgren, P. and Jørgensen, R., M. - S. Li, Y. Taran, K.F. Saghaug, `` Towards a new generation of business model innovation model '', presented at the 12th International CINet Conference : Practicing innovation in times of discontinuity, Aarhus, Denmark, 10 -- 13 September 2011 Long Range Planning, vol 43 April 2010, `` Special Issue on Business Models, '' includes 19 pieces by leading scholars on the nature of business models S. Muegge. Business Model Discovery by Technology Entrepreneurs. Technology Innovation Management Review, April 2012, pp. 5 -- 16. S. Muegge, C. Haw, and Sir T. Matthews, Business Models for Entrepreneurs and Startups, Best of TIM Review, Book 2, Talent First Network, 2013. Alex Osterwalder et al. Business Model Generation, Co-authored with Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self - published, 2009 O. Peterovic and C. Kittl et al., Developing Business Models for eBusiness., International Conference on Electronic Commerce 2001, 2001. Alt, Rainer ; Zimmermann, Hans - Dieter : Introduction to Special Section -- Business Models. In : Electronic Markets Anniversary Edition, Vol. 11 ( 2001 ), No. 1. link Santiago Restrepo Barrera, Business model tool, Business life model, Colombia 2012, http://www.imaginatunegocio.com/#!business-life-model/c1o75 ( Spanish ) Paul Timmers. Business Models for Electronic Markets, Electronic Markets, Vol 8 ( 1998 ) No 2, pp. 3 -- 8. Peter Weill and M.R. Vitale, Place to space : Migrating to eBusiness Models., Boston, Harvard Business School Press, 2001. C. Zott, R. Amit, & L. Massa. ' The Business Model : Theoretical Roots, Recent Developments, and Future Research ', WP - 862, IESE, June, 2010 - revised September 2010 ( PDF ) Magretta, J. ( 2002 ). Why Business Models Matter, Harvard Business Review, May : 86 - 92. Govindarajan, V. and Trimble, C. ( 2011 ). The CEO 's role in business model reinvention. Harvard Business Review, January -- February : 108 - 114. van Zyl, Jay. ( 2011 ). Built to Thrive : using innovation to make your mark in a connected world. Chapter 7 Towards a universal service delivery platform. San Francisco. External links Sustaining Digital Resources : An on - the - ground view of projects today, Ithaka, November 2009. Overview of the models being deployed and analysis on the effects of income generation and cost management. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Business_model&oldid=832746878 '' Categories : Business models Strategic management Types of marketing Hidden categories : Wikipedia articles needing factual verification from February 2015 All articles with unsourced statements Articles with unsourced statements from June 2016 Talk Contents About Wikipedia Wikiquote Afrikaans বাংলা Български Català Čeština Cymraeg Deutsch Español فارسی Français 한국어 हिन्दी Bahasa Indonesia Italiano עברית ಕನ್ನಡ Latviešu Nederlands 日本 語 Norsk Polski Português Русский Slovenčina Suomi Svenska தமிழ் తెలుగు Українська Tiếng Việt 中文 23 more Edit links This page was last edited on 27 March 2018, at 19 : 50. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: a business model describes the rationale of how an organization creates
Answer: how an organization creates, delivers, and captures value,[1] in economic, social, cultural or other contexts