Business Model

We have framework, architecture, and model. Are they ever useful? More Questions

What is a BusinessModel? Why should people care about having a BusinessModel? Is it one of those BusinessPatterns that can be successfully transplanted elsewhere? To some, it may remain a kind of MeaninglessDoublespeak. But I can assure you a few practitioners in the arena of BusinessProcessManagement care about BusinessModels.

So is BusinessModel a StrategicManagement concern? If so, is it a concern of those engaged in activities related to StrategicAlignmentOfItProductsAndServices?

How does InformationTechnologyFrameworks link into a BusinessModel?

Other questions:

A researcher, who participated in significant projects in a few different continents, came in for a presentation at our workplace and argued the process of doing BusinessModeling facilitates communication within the company as one benefit. I will try to get more of his thoughts but I have nothing to contribute; maybe the collective wisdom of this WikiCommunity will provide sufficient enticement for him to provide more information and details.

Meanwhile, I have to resort to research to add content to this page.

ChangeManagement for BusinessModel - ImpedanceMismatch

The above expert did say from his work with various organizations he got to recognize a BusinessModel can have significant change within a short time period. (Gives a bit of a hint on his "vision" of BusinessModel.) He also recognizes multi-year IT projects do not change their course quickly (e.g. large EnterpriseResourcePlanning package implementation, BTW WhyIsPayrollHard is a good reading for those of us wanting not privileged with the BigPicture of WhyAreWeAllHere looking at BusinessModel).

PaveThePath as a solution?

I suggested to him if BusinessModels change quickly, companies should spend energy looking at using ScenarioPlanning techniques to provide BusinessContinuity for BusinessModels. I was not satisfied with his responses.


Capabilities are not associated with processes, they live within the HumanResources which define, own, manage, operate the processes. These "resources" collectively have this characteristic called OrganizationCulture, which is neither homogeneous nor harmonious.

StrategyExecution? rely on the unreliable

A proper BusinessModel will need consideration of the limited amount of capabilities that exist in the HumanResources, and the limited speed that an OrganizationCulture can change. I am hoping for some contribution (e.g. good and accessible reading material) included here, that will be useful in matters related to developing BusinessModels and implementation strategies.

ToyotaProductionSystem (TPS) - LessIsMore and more

I view this as a BusinessModel. Apparently Toyota has set up centres in the US teaching other companies to improve, TheToyotaWay.

It is possible they are betting that the copycats cannot take a longterm view, and therefore their investments will exceed returns.

BusinessModel Equals Function

If you consider a particular business as a system, the BusinessModel corresponds pretty exactly to the function of that system. The business in operation is a combination of function and performance. As with many complex systems, it can sometimes be difficult to distinguish between the two. The BusinessModel includes the raw function of what economists refer to as its "industry" (it's a bank or an airline, a retailer or a newspaper, for example), but can also include particular ways of operating the raw function (a mortgage bank or low-cost airline, a discount retailer or a "quality" newspaper, for example). Thus the BusinessModel "function" can shade into "performance" when particular approaches to types of customer, levels of service and brand ethos are considered. As a general rule, it may seem easier to change the more peripheral "performance" aspects of the BusinessModel than the core "function"; it is more usual to add new "function" or remove existing "function".

Reading Material

ChangeManagement and BusinessModel. See a 2005 blog at

An overview of ScenarioPlanning is available at

HumanResources related. May05 Wharton School study titled "The Effect of HRM ...Worker Productivity" at


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