1. Business Model

business model

A business model is a framework for creating economic, social, and/or other forms of value. The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

Conceptualization of business models try to formalize informal descriptions into building blocks and their relationships. While many difference conceptualizations exist, Osterwalder proposed a synthesis of difference conceptualizations into a single reference model based on the similarities of a large range of models, and constitutes a business model design template which allows enterprises to describe their business model:

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