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(Alt et al., 2001) increase the number of components to six: Mission, Structure, Processes, Revenues, Technology, Legal Issues. Afuah and Tucci (Afuah et al., 2001) adopt a wider approach of business model by defining eight components of a business model, namely: Customer, Value, Scope, Pricing, Revenue Source, Connected Activities, Implementation, Capabilities, Sustainability. An interesting argument (Chesbrough et al, 2000) is that the business model mediates between the technical and economic domains and specify business model components through their definition of the six principal functions that a business model has to address:

  • Articulate the value proposition, that is, the value created for users by the offering based on the technology;

  • Identify the market segment, that is, the users to whom the technology is useful and for what purpose;

  • Define the structure of the value chain within the firm required to create and distribute the offering

  • Estimate the cost structure and profit potential of producing the offering, given the value proposition and value chain structure chosen;

  • Describe the position of a firm within the value network linking suppliers and customers, including identification of potential complementors and

competitors; Formulate the competitive strategy by which the innovating firm will


and hold advantage Taking into account the

over rivals. various approaches





components of selected to use

business model that in this paper and in

exist in the our relevant

current literature we finally research the following basic

business model components, as most critical factors taken into Model:

they are generic, include all others and are the consideration for the success of the Business

  • The value proposition to the customer

  • The sources of revenues and the cost structure

  • The value production architecture (value chain and actors)

The above components selection is interrelated with the business model definition mentioned in the previous section.

3 Methodology of Business Model design

Despite the popular myth of the “unique” business model, that surprises the market, is completely different from existing ones and results in a stream of profits,, the design of successful business model it does not happen accidentally, but on the contrary it is - a result of a systematic work. However, there is not extensive the research that has been conducted so far concerning methodologies for designing new business models. This limited research in designing business models is further explained in the following paragraphs.

The first approach (Morris M. et al, 2005), proposes an integrated framework for characterizing and describing business models, which is based on six significant decision components (questions):

  • Component 1 (factors related to the offering): How do we create value?

  • Component 2 (market factors): Who do we create value for?


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