Architecture Derivatives - Difference between Business Patterns, Business Models, Business Models and Business Scenarios

At present, the more widely accepted definition: in order to maximize customer value, the internal and external elements that enable the enterprise to run integrated to form a complete and efficient operating system with unique core competitiveness, and through the optimal realization of the form to meet customer demand, customer value, and at the same time to make the system to achieve the goal of sustained profitability of the overall solution MBA Wisdom Wikipedia.

In layman's terms, a business model is a theoretical model that describes how a company creates value for its customers, transfers value, and acquires value. In the most straightforward terms, a business model describes how a company makes money.

2. The role of the business model

The business model determines the way in which a company makes money, and it plays a very important role in many management models. Especially with the emergence of new technologies, new products and new services, the splitting and reorganization of the value chain, the emergence of new customer groups and sales channels, which brings fierce competition, but also new ways of doing business. In the past, under the planned economy, the business models of all enterprises were more or less the same, and if you knew what industry you were in, you generally knew how to do it. Now the enterprise business model is very different, the same restaurant, do fast food or do high-end business model is bound to be different. Enterprises can no longer rely only on a single product or a leading technology can be profitable, not to mention a single idea can ensure sustainable development. Enterprises that can produce and sustained profitability must rely on systematic arrangements, the overall strength, which is the role of the business model. So the future competition will be business model competition, which is also the highest form of competition.

3. The essence of business model

Imagine the production of IPhone Apple does not produce cell phones; monopolize the taxi market of the drop does not own a car; the largest catering platform Hungry's does not have a restaurant, these business models are the subversion of the traditional model. The emergence of each new business model means the emergence of a kind of innovation, a new business opportunity, who can be the first to grasp this business opportunity, who will be able to compete in the business competition first to take the lead.

The essence of the business model is the core logic of the enterprise to create value, which is to grasp the opportunities faced by the enterprise, to meet the needs of customers, and to clarify the profit model of the enterprise. So the business model is the core essence of the enterprise, especially entrepreneurial enterprises. Entrepreneurial enterprise financing needs to write a business plan, business plan is essentially a description of the business model of the enterprise, to say clearly what to do, why to do, how to do up, the need for investment and so on. Only a clear and reasonable description of the business model can really impress investors to invest.

4. Business model description

There are many ways to describe the business model, and the current mainstream is to describe the business model through the model. Describing a business model with a model mainly involves describing the business elements involved in the enterprise and the relationship between them into a model, which is the conceptualization and abstraction of the enterprise's business activities. This approach not only sketches the overall and systematic view of the business model, but also organically associates all the elements involved in the business model and clarifies the relationship between the elements.

Currently the more mainstream business model of the model, is Alexander Osterwalder and Yves Pigneur in the "Business Model Generation" and "Value Proposition Design" two books put forward the theory of business model canvas, with nine different modules to describe an organization's business model.

The nine modules of the business model canvas are defined as follows, and the relationship of each module is shown in Figure 1.

Figure 1 Business Model Canvas

It should be noted that the purpose of the business model is to make the enterprise profitable, but there are some organizations and enterprises whose strategic goal is not profitability. For example, the Red Cross, for such organizations or businesses, a business model analysis can still be conducted, except that at this point the value is focused on achieving the mission and vision of the organization and business. The core value of the Red Cross is to deliver donations as safely, quickly, and easily as possible to the most appropriate people, so the Red Cross business model analysis, including customers, partners, and channels, should be centered on this core value.

Business model

The business model is another way of expressing the business model in some literature and materials, and the two are identical in definition and connotation.

More accurately, most of the English use the phrase "business model" for the term "business model", which is more accurately translated as "商業模型", but the Chinese use the phrase "business model" for the term "business model".

This is a good example of a business model.