Definition for Business Model



I found a nice definition for business model which I just have to mention here:

A business model performs two important functions: it creates value, and it captures a portion of that value. It creates value by defining a series of activities from raw materials through to the final consumer that will yield a new product or service with value being added throughout the various activities. The business model captures value by establishing a unique resource, asset, or position within that series of activities, where the firm enjoys a competitive advantage.

(Henry Chesbrough, "Open Business Models", 2006 Harvard Business School Press)

Taking this business models are easily planable: One has to observe the habits of "final consumer" (who ever this is) and search for products or processes rendering the consumer unsatisfied. Than track this "series of activities" and spot where it can be optimized.

Wikipedia gives a variety of definitions for innovation (see here). Some of them fit into this business model thing, some of them don't. The business model definition here could work without having a completely new idea.

I am trying to come up with a model for myself...



Skip to main content