Monday, June 20, 2011

The origin of the business model

Business model has become linked to entrepreneurs and venture investors in the mouth of a term. Almost everyone is convinced that with a good business model, there is a half success guarantee. So, in the end what is the business model? What elements it contains, and what common type?
The most straightforward use of the words to tell you: business model is the company through what channels or ways to make money? In short, the beverage company to make money by selling drinks; sent by express courier company to make money; Internet companies to make money through click-through rate; Communications receive calls through the money; supermarkets to make money through platforms and storage and so on. As long as there is money to children, there are business models exist.
Business model is a relatively new term. Although it first appeared in the 1950s, but until the 1990s began to be widely used and disseminated. Today, although the frequency of emergence of the term high definition on it is still not an authoritative version. Relatively accurate way of putting the current is:
Is a business model consists of a series of conceptual elements and their relations tool to clarify the logic of a particular business entity. It describes the company can provide customers with value and the company's internal structure, partner network and relational capital (Relationship Capital), etc. in order to achieve (create, sell and deliver) value and generate the revenue elements of sustainable profitability.
The concept of business model
Business model definition: To achieve customer value, to enable businesses to run internal and external elements integrate to form a complete high efficiency with a unique core competence of the operating system, and through the optimal implementation in the form to meet customer demand, value to customers, while enabling the system to achieve sustained profitability goals of the overall solution.
People in the literature use the term business model is often blurred the two different meanings: one author simply use it to refer to how the company engaged in the business of the specific ways and means, and the other by more emphasis on modeling significance. Both are essentially different: the former refers to the way a company engaged in the business, while the latter refers to the conceptualization of this approach. Proponents of the latter point of view put forward some elements of the relationship between the composition of the reference model (ReferenceModel), to describe the company's business model.
Business model is a very broad concept, commonly referred to as the argument with the business model for many, including business model, profit model, B2B models, B2C model, "Click and Mortar" model, advertising revenue model, etc., vary and foot. Business model is a simplified business logic, some elements still need to use to describe this logic.

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