What is business concepts and models?
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Business concepts and models refer to the frameworks and ideas used to understand and analyze how organizations operate and create value. These concepts and models provide a structured approach to examining various aspects of a business, such as its strategy, processes, and information technology. They help in identifying the relationships between different elements of a business and how they contribute to its success. The business model concept, in particular, has gained attention in recent years as a way to explain how firms create and capture value. It is seen as the missing link between business strategy, processes, and information technology. Researchers argue that the business and information systems engineering (BISE) community has unique competencies that can contribute significantly to the study of business models.
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28 Sep 2017 | The paper discusses various approaches and characteristics of business models (BM) of organizations, which are a combination of different processes aimed at maximizing profits. |
| The paper provides a new perspective on the business model concept, suggesting that it consists of five areas of concern that should be addressed in the dialogue between firm representatives and stakeholders. | |
Open access•Posted Content | The paper discusses the business model concept, which is the logic inherent in a business model that connects business strategy, processes, and IT. |
| The paper discusses the business model concept, which is the logic inherent in a business model and is critical for business success. It identifies three streams of research related to business models in IT industries, IT enabled or digital business models, and IT support for developing and managing business models. |
Related Questions
What is the concept of business model?4 answersThe concept of a business model encompasses a comprehensive framework that outlines how a company creates, delivers, and captures value, emphasizing its operational, strategic, and financial mechanisms. It serves as a "formula" for generating value, integrating aspects such as sales, cost-effectiveness, and financing operations, thereby acting as a part of a company's intangible resources. This conceptual object is described as how a company utilizes people and resources to deliver products and services to customers while generating revenue, highlighting the importance of elements like go-to-market plans, product design, and digital marketing strategies for product success.
The business model's significance is further underscored by its role in ensuring competitive advantages through the strategic application of profit and cost indicators, reflecting the holistic understanding of a company's activities and the mechanisms for offering consumer value. It is distinguished from business strategy by its broader scope, focusing on the flow of products, services, and relationships, as well as the revenue sources and costs associated with providing value to customers.
Moreover, the business model is recognized for its systemic and universal character, reflecting both the internal and external environments of a business system, which facilitates microeconomic and macroeconomic research. This systemic nature is crucial for defining, substantiating, and implementing strategic business goals based on optimal schemes. The evolving nature of business models, driven by managerial cognition and learning processes, underscores their growing importance over traditional strategic frameworks, positioning them as a significant source of competitive advantage in the face of major disruptions and opportunities for innovation.
In summary, the concept of a business model is a multifaceted framework that integrates a company's strategic, operational, and financial dimensions to create, deliver, and capture value, playing a pivotal role in achieving competitive advantage and adapting to changing market dynamics.
What is the concept of business model in the literature ?10 answersThe concept of a business model (BM) in the literature is multifaceted and has evolved over time, reflecting a variety of perspectives and dimensions. Initially, BMs were broadly understood as a scientific method for fostering creativity and innovation in establishing successful businesses, emphasizing the importance of defining characteristics such as customers, distribution, value, resources, activities, cost, and revenue. This foundational view has been expanded upon by identifying three basic theoretical approaches to BMs, which include a range of concepts and chronological developments.
Research has systematically categorized BMs into key areas, grouping them into domains such as BM terminology, factors, outcomes and impacts, and concept application and transfer, highlighting the breadth of the field and the need for further exploration. The literature also points to the crucial role of BMs in business operations and strategy, especially in the context of innovation, which can significantly enhance business performance. This is supported by the examination of BM innovation (BMI) as part of a company's broader business strategies, focusing on value creation and capture in various economic, social, and environmental settings.
Despite the growing body of literature, there remains a lack of consistency in defining BMs, with studies identifying gaps in definitions, dimensions, antecedents, outcomes, variables, and boundaries. The exploration of business model archetypes (BMA) reveals a similar issue, with a noted lack of clarity and universal applicability in existing definitions and classifications, particularly in fields such as sustainability and the circular economy. Recent efforts aim to systematize the knowledge around BMI processes, developing frameworks to categorize different types of BMI processes and their interrelations, thereby addressing some of the identified research gaps.
In summary, the concept of a BM in literature is characterized by its emphasis on innovation, value creation, and strategic importance in business success, yet it is also marked by ongoing debates over definitions and frameworks, underscoring the dynamic and evolving nature of the field.
What is financial concepts?5 answersFinancial concepts encompass a wide array of ideas and principles related to the management of money, assets, and investments. These concepts are evolving due to innovations impacting financial markets and institutions, leading to a broader understanding of money beyond traditional measures like currency and demand deposits. Economic theories play a crucial role in shaping financial concepts, with models such as the Capital Asset Pricing Model (CAPM) and the Black-Scholes Option Pricing Model providing frameworks for understanding security pricing and market equilibrium. Additionally, the integration of financial information, operating activities, investing, and financing activities are essential components of financial reporting, highlighting the practical application of financial concepts in business operations and decision-making. Recognizing the changing landscape of the finance industry, companies like Hitachi are actively involved in developing innovative financial solutions to address future challenges and industry transformations.
What is a business model?5 answersA business model is a description of how a company creates economic value for its stakeholders and retains a portion of this value for itself and its shareholders. It is a routine sequence of activities performed by the firm to create value for customers, partners, and employees, while also ensuring that the firm generates profit. The business model helps define how the organization creates value, who it creates value for, and how it delivers and operates. It is a sustainable way of doing business, with the ambition to survive and create a successful entity in the long run. Business models are simple representations of the complex reality of a business, serving the purpose of communication, learning, persuasion, analysis, compliance, software development, and managing change. They facilitate a common understanding of a business situation and support the presentation of different details to different audiences.
What is business model innovation?5 answersBusiness model innovation refers to the introduction of new and different ways of conducting business compared to existing models in the same field. It involves making changes to one or more core elements of a business model, such as the customer, value proposition, value chain, or revenue mechanism. Research suggests that business model innovations are more resilient and successful in the long term compared to traditional types of innovation. Start-ups, in particular, are increasingly focusing on business model innovation to grow and scale up under conditions of uncertainty. Established firms also face challenges in business model innovation, such as responding to disruptive models or migrating from one model to another. Business model innovation is seen as a way to achieve corporate sustainability by integrating sustainability principles into companies' activities and extending value creation to non-financial stakeholders. Overall, business model innovation plays a crucial role in the success of digital ventures in highly competitive environments.
What is business model?2 answersA business model is a systematic approach that defines how an organization creates value and for whom. It consists of various components such as market segments, customer value, delivery, and operation. The purpose of a business model is twofold: to create economic value for all stakeholders, including customers, partners, and employees, and to appropriate a portion of this value for the firm and its shareholders. This value creation ensures that the benefits received by stakeholders exceed the costs incurred, while also ensuring that the firm retains a sufficient portion of the created economic value in the form of profit. A business model is essential for a firm's success in a complex and changing environment, as it differentiates the firm from its competitors and guides its strategies for revenue generation and collaboration with internal and external players.