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Business model A business model describes the rationale of how an organization creates, delivers, and captures value,[1] in economic, social, cultural or other contexts. The process of business model construction is part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. Business models are used to describe and classify businesses, especially in an entrepreneurial setting, but they are also used by managers inside companies to explore possibilities for future development. History[edit] Over the years, business models have become much more sophisticated. Today, the type of business models might depend on how technology is used. Theoretical and empirical insights to business models[edit] Applications[edit]
Digital Business Models Operating model Operating model is an abstract representation of how an organization operates across process, organization and technology domains in order to accomplish its function.[1] An organization is a complex system. An operating model breaks this system into components to improve understanding and suggest opportunities for improvement. An operating model can describe the way an organization does business today. By contrast, a business model describes how an organization creates, delivers and captures value and sustains itself in the process. History[edit] Origins in corporate strategy[edit] Operating model as defined here is similar to the definition from Lynch, et al., of corporate strategy: "the relationships among the businesses in the corporation's portfolio and the process by which investments will be determined among them Corporate strategy grew out of the research of Harvard Business School professor Bruce R. The nomenclature evolved, but the categories survive: Business/IT dialogue[edit]