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A business model describes how a business organization creates, delivers, and captures value,[2] 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.[1]
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.
- ^ a b Geissdoerfer, Martin; Savaget, Paulo; Evans, Steve (2017). "The Cambridge Business Model Innovation Process". Procedia Manufacturing. 8: 262–269. doi:10.1016/j.promfg.2017.02.033. ISSN 2351-9789.
- ^ Business Model Generation, Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010