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business model

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business model

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rationale of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts

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model
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Business models
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Category:Business models
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Encyclopedic overview

Business model innovation is an iterative and potentially circular process. A business model describes how a business organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The model describes the specific way in which the business conducts itself, spends, and earns money in a way that generates profit. The process of business model construction and modification is also called business model innovation and forms a 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 an organization or business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, profit structures, sourcing, trading practices, and operational processes and policies including culture.

Excerpted from Wikipedia’s “business model” article, available under the CC BY-SA 4.0 licence.

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