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A business model is an "abstract representation of an organization, whether textual or graphic, of all related concepts, financial arrangements, and the core portfolio of products or services that the organization offers and will offer based on the necessary actions to achieve strategic goals and objectives. "[1] [2] This definition of Al-Debei indicates that value proposition, value architecture (organizational and technological infrastructure), financial value and network value are the primary dimensions of business models. [3]
A business model rationally describes how an organization creates, delivers, and captures value in [4] social, cultural, and other contexts. The process of building a business model is part of the business strategy.
In theory and practice, the term business model is used for a broad set of descriptions that represent core aspects of a business, including purpose, business process, target market, bids, strategies, infrastructure, organizational structures, trade practices, operational processes and policies. The literature has offered various interpretations of business models. For example, they are often defined as designs of organizational structures to take advantage of a business opportunity. [5] Extensions of this definition emphasize the use of consistency in the description of business models.
Business models are used to describe and classify businesses, specifically in a context of entrepreneurship, but are also used within companies by managers to explore future development possibilities. Private and well-known business models can serve as "recipes" for managers. [7] Business models are also often referred to in the context of accounting within the development of public reports.
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