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What is Business model

Sharing Economy and the Impact of Collaborative Consumption
It is a conceptual structure designed as a system to support the methods of business viability, the means to fulfill its purpose and goals, financing, resources, operations, customer base, generation of revenues and profits.
Published in Chapter:
Uber's Strategy as a Competitive Business Model of Sharing Economy
José G. Vargas-Hernández (University of Guadalajara, Mexico)
Copyright: © 2020 |Pages: 19
DOI: 10.4018/978-1-5225-9928-9.ch006
Abstract
The aim of this chapter is to analyze the different strategies that take Uber to join the global market successfully, positioning itself in different countries, and to analyze how these businesses and strategies that follow become successful to the extent that Uber is doing, not just one city but many in several countries around the world. In order to accomplish this, it is necessary to reference a previous literature review on collaborative economies business model that is appropriate to identify the different theories that may be applicable. As a result, the analysis of this work shows the determining factors that have placed Uber as one of the leading companies within its area of influence and ends with some recommendations on the conflicts that the firm presents when entering a new market.
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Young Ideas to Improve Organizational Resilience in Turbulent and Changing Environments
Specify the revenue generation mechanism(s) for the firm. Given the value proposition and the position of the firm within the value network, formulate the competitive strategy by which the innovating firm will gain and hold advantage over rivals in a market segment.
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Technology-Based Innovation for Business Model Innovation
A business model describes how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
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Organizational and Management Aspects of Cloud Computing Application in Scientific Research
General design of utilization of organizational resources for value creation, along with financial and market aspects of that process.
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Crowdsourcing in Business-to-Business Markets: A Value Creation and Business Model Perspective
Describes to value creation logic of a company and it is usually opened up through different elements.
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Novell's Open Source Evolution
A business model (also called a business design) is the mechanism by which a business intends to generate revenue and profits ( http://en.wikipedia.org/wiki/Business_model ).
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Plan and Rules for Data Analysis Success: A Roadmap
A business model is a company's plan for how it will generate revenues and make a profit. It explains what products or services the business plans to manufacture and market, and how it plans to do so, including what expenses it will incur.
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Spinning Off Business Activities for Care Giver Support: The DISCOVER Attempt
The reason and method by which an organization creates, delivers and shares value between stakeholders in a sustainable manner.
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A Social Enterprise Business Model and a Case Study of Pacific Community Ventures (PCV)
A decision-making framework for developing logically coherent activities to support value creation and formulating strategies to sustain competitive advantages.
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User Involvement during the Development of Mobile Service Applications
The design or architecture of a business including its resources; organizational configuration and products/revenue streams.
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Only One Evolving Strategy
How a business creates value for its customers, and how it retains some of that value.
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Business Model Renewal: The TIA-MARIA Framework for Enterprise Realignment
the architecture of a firm including the business processes and resources that enable customer value and its competitive basis.
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Digital Transformations and the Importance of Business Models for Organizations: Digital Business Models – The Key for Success in Today's Business World
Defines how business can sale their products and services on the market and gain revenue, cover costs and obtain a profit.
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Challenges for Social Enterprises in Special Education
A model that describes the rationale of how an organization creates delivers and captures value.
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Business Model Innovation-Oriented Technology Management for Emergent Technologies
Business model describes the logic of the value generation for customers, stakeholders and the company or research institution.
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Social Innovation and Entrepreneurship: The Case of Porto Region
Conceptual and operational tool that describes the value proposition (economic, social, ecological and psychological value) offered to the stakeholders through a product (good, service or idea), the organization and coordination of key activities (team and partners), and the design of a marketing plan, to deliver those values and achieve economic, social, ecological, and psychological sustainability.
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Business Models for Green Retrofitting
Method of the enterprise to describe key structural and operational characteristics, the way it earns revenue and delivers profit in the current business environment, starting from the value of the business idea.
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Mobile Application Ecosystems: An Analysis of Android Ecosystem
The process of how an organization creates, delivers, and captures value.
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Empirical Investigation of E-Supply Chain Management Experience in North American Electronic Manufacturing Services
A business model is an “abstract representation of an organization, be it conceptual, textual, and/or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives.
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The Design and Implementation of Business Models in Metropolitan Broadband Networks
A plan that ensures the financial viability of the broadband infrastructure.
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Start-Ups and Spin-Offs in Biotechnology Sector in Poland: Business Models Analysis
A model that defines the way a company delivers customer value, makes customers pay for it and transforms these payments into profits, thereby reflecting the management’s hypothesis of what the customers want, how they want to receive this and how the company can best meet these need, be paid and generate profit.
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Service Logic Business Model Canvas for Lean Development of SMEs and Start-Ups
Outlines the essential details of a firm’s value proposition for its various stakeholders and the activity system the firm uses to create and deliver value to its customers ( Seddon et al. (2004 , 429).
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Consumption Characteristics of the Millennial Generation and Strategies Implemented to Satisfy Them
It is a tool prior to the business plan that will allows companies to clearly define what business they are going to offer the market, how they are going to do it, who the business is going to sell it to, how it is going to sell it and how it is going to generate income. It is an analysis tool that will let the business know who it is, what it does, how it does it, at what cost, with what means and what sources of income it will have.
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Managerial Challenges Under FinTech: Evidence From Zimbabwean Commercial Banks
A company's plan that details how a firm creates value with the aim of making a profit.
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Municipal Urban Waste-to-Energy Business Model in Mexico: A Study of Three Companies
It is a tool prior to the business plan that will allow you to clearly define what you are going to offer to the market, how you are going to do it, to whom you are going to sell it, how are you going to sell it and how are you going to generate income.
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The Worker Perspective in Telehealth
A plan on to successfully operate a business including revenue sources and customer demographics/specialties.
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Co-Creating Digital Transformation
The rationale of how an organization creates, delivers, and captures value.
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E-Commerce Management in Emerging Markets
A business design tool describing attributes required to produce and deliver value propositions. Includes target customers, infrastructure, valued attributes of the offering (customer value) and revenue generating mechanisms.
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DMB Market and Audience Attitude
How the operators provide the products and services for consumers, how they explore the market and get profits from consumers. Business model is widely used when dotcom businesses are appeared and develop a unique Internet business model like Priceline.com and Amazon.com.
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The Past, Present, and Future of E-Business Models
An interdependent system and network of operations and decisions for the purpose of creating and capturing value, which may require change or transformation over time.
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Supporting E-Commerce Strategy through Web Initiatives
A specific arrangement of organizational strategies, goals, processes, resources (technologies, finances, people, etc.), structures, products, and services that enable a firm to successfully compete in the market place. Many EC researchers have taken a narrower view, based on organizations involved (i.e., B2B, B2C, B2G, etc.), or specific framework used (i.e., hierarchy, hub, or intermediary for e-markets). While there is not yet a consensus about what makes up a business model, the trend is away from a narrower view.
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A Framework for Exploring IT-Led Change in Morphing Organizations
An external representation of how the organization makes money and creates value through interactions with customers, suppliers and partners in the external trading environment.
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Micro Social Enterprises in Developing Countries: The South African Experience
A business model is a plan for the organization that assesses beneficiaries, clients, staff, donors, and other stakeholders, together with the service/product being offered and related costs, and the path between organization and end consumer.
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Industry 4.0 as a New Disruptive Concept in IT Management and IT Governance: Vision and Future of the Industry 4.0 Concept
An economical and organizational representation of the process which delivers an added value.
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The Complex and Opaque Cloud Ecosystem: Recommendations for IaaS Providers for a Successful Positioning in the Ecosystem
A business model is made up of several constitutive components acting as a tool for depicting, innovating and evaluating the business logic of an organization.
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How Multinational Companies Create and Capture Value From Innovation Through Business Model Dynamics
The logic that exposes how the company creates and captures value from its value propositions and those business components related to the strategic choices employed to develop that task.
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Evaluation of Strategic Opportunities and Resulting Business Models for SMEs: Employing IoT in Their Data-Driven Ecosystems
A design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.
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Synthesis of MOF, MDA, PIM, MVC, and BCE Notations and Patterns
A description of a company’s activity that ensures its profit. This comes down to defining the role of the organization in the market value chain in which it operates and describing the mechanism of creating this value within the organization. Such models are expressed in the form of business models and structures as well as their dynamics. Typical elements of a business model: superior market value chain, internal value chain model, market five forces model, as well as SWOT context analysis.
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Sustainable Development Through the Circular Economy: Experience From Emerging Economies
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Mapping the Collaborative Platform Economy Business Practice: A Typological Study
A set of strategic decisions which describe how an organization creates, transfers, and obtains value through internal activities and partnerships with stakeholders.
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B Corp Certification for a Circular Economy Approach and a Sustainable Pathway
Model through which an organization adopts strategic and organizational solutions to create a competitive advantage.
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Design Thinking in Product Design: Challenges and Opportunities
Describes how an organization creates, delivers and captures value, in economic, social, cultural or other contexts.
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Social Media for Small and Medium-Sized Enterprises
A decision-making framework for developing logically coherent activities to support value creation and formulating strategies to sustain competitive advantages.
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Internet-Enabled Business Models and Marketing Strategies
It is a plan for the successful functioning of an organization, identifying sources of revenue, the potential customer base, products, and financing.
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Understanding Business Models on the Cloud
The strategic logic that defines how a technology creates value and how its value can be captured.
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Analysis and Comparison of Business Models of Leading Enterprises in the Chinese Hydrogen Energy Industry
A Business model provides information about an organization’s target market, their market’s need, and the role that the business’s products or services will play in meeting those needs.
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Leveraging Business Model Innovation in the International Space Industry
The plan implemented by a company to generate revenue and make a profit from its operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.
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Value Network View on Digital Marketplace
A concept that describes the mechanism of a firm that creates and delivers value to customers and making profits through the payment of the value.
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What Is a P2P Business Model?
A business model states key activities and processes to support the principles of competitive advantage the strategy defines for a firm. While a strategy defines the foundations for effective value creation, a business model outlines the specific way of creating value for them. A strategy and a business model are complementary rather than identical and required for success of P2P platforms.
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Creating Business Opportunities: Using Business Model Innovation Method to Enhance Online Knowledge Trading
A business operation approach involving a series of planned activities or business processes by which an enterprise can generate revenue.
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Creating Business Opportunities Based on Use of Electronic Knowledge Business Models
A business operation approach involving a series of planned activities or business processes by which an enterprise can generate revenue.
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Cloud Computing Service Provider Business Model Success Characteristics
A dynamic set of interrelated set of components that articulate how a business makes money, creates, and captures value in serving the target customer, taking into account key activities, resources and partnerships as well as the value exchanges between the company and its partners.
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Comprehensive Analysis Methodology for Business Planning
It answers the questions; who is the customer? And what does the customer value? ( Magretta, 2002 ).
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The Critical Role of the Chief Information Officer in Smart Management of Digital Transformation
A conceptual map of organisational offerings, supplies, customers, and revenue sources to facilitate the existence and survival of a business.
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Business Strategic Chess
A conceptual, strategic, and operational tool that describes the value proposition offered to the stakeholders through a product (good, service, idea, experience, information), including segmentation, targeting, positioning, price, distribution, communication, people, partners, processes, and purposes, aiming at to achieve societal sustainability.
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Sustainable Entrepreneurial Thinking: Developing Pro-Active, Globally Aware Citizens
A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
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The Acceptability of Teleconsultations in Teledentistry: A Case Study
A unified conceptual description of the activities of value creation (the creation of a product that meets customers’ needs), value capture (the marketing, support and sale of the product) and value architecture (the chain of activities that link customers and suppliers of a product) (Kimble & Bourdon, 2013 AU35: The in-text citation "Authors, 2013" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
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Women Entrepreneurship in Multifunctional Agriculture for Rural Revival in Serbia
A system used to explain how an organization creates, delivers, and captures value.
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Business Models for Digital Economy: Good Practices and Success Stories
Explains how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts.
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Digital Transformation: Opportunities and Challenges
Is the company’s scheme of generating profits from products, or services in the target market the company decided to serve.
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Business Models in Open Source Software Value Creation
A tool for exploring new business ideas and capturing the essence of each alternative.
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Business Model Typology for Mobile Commerce
Business model is defined as the abstracting description of the functionality of a business idea, focusing on the value proposition, customer segmentation and revenue source.
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Lebanese Entrepreneurs' Adaptation to the Multilevel Crisis: An Interpretation of Robert Greene's The 33 Strategies of War
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Internet Protocol Television
A tool highlighting the relationship between a set of elements in order to provide business logic to a company. Complete model may include statements on targeted customer segments, pricing models, and revenue models.
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Business Model Creation for Cost Saving in the New World Economic Order
It is the set of pieces that have to be used and put in a specific order to make the company run in the best way.
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Business Model Innovation and the Balanced Scorecard
The content structure and governance of transactions designed to create value by exploiting business opportunities. The business model defines the total value created in transactions from a firm’s products and services as the informal and formal core aspects of an organization that mediate between technology development and economic value creation.
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The Role of Internal Standardization in Business Models: An Activity Configurations Perspective
A system of activities not delimited to the firm itself but includes a system-level approach to how the firm interacts with its environment and does business.
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Artificial Intelligence as Driver for SME Competitiveness
A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
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Entrepreneurship and Entrepreneurial Ecosystem: Effects of COVID-19 and the Role of ICTs
It is the process of revealing the key factors (stakeholders, constraints, resources, customers, etc.) and their relationships with each other to successfully transform a business idea into a business.
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Acquiring Competitive Advantage through Effective Knowledge Sharing
It is a design to explain the logic behind the sustained operation of a business, and a rationale to describe how that business provides and delivers value to the stakeholders.
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Business Model Development for Stability, Sustainability, and Resilience
An interactive system of internal and external components of the business focused on value creation.
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Human Resources Outsourcing Strategies
First concept is generally understood as a view of the firm’s logic for creating and commercializing value. Second, business model implementation contains its translation into concrete things, such as a business structure, business processes, and infrastructure. Business models are subject to external pressure and thus constantly subject to change ( Osterwalder et al., 2005 ).
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Integrated Management Platform for Homeless People
Describe the strategies and methods that organizations adopt to capture or create value.
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Bailey and Peak and Sorensen on Management and Planning
It answers the questions; who is the customer? And what does the customer value? ( Magretta, 2002 ).
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A Framework for Exploring IT-Led Change in Morphing Organizations
An external representation of how the organization makes money and creates value through interactions with customers, suppliers and partners in the external trading environment.
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The Role of Social Entrepreneurship in Women's Empowerment: Case of Cöp(m)adam
A holistic framework that describes how an organization creates, delivers, and captures value.
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Stakeholder Network, Relationship Marketing, and Business Model
Includes the combined elements of” who “,” what “,” when “,” why “,” where “, “How” and “how much” involved in the transmission of products and services to customers and end consumers.
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Business Case of the Affiliate Marketing Business Model
Company's plan for how it will generate revenues and make a profit.
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Maintaining Global Competitiveness Even in a Period of Global Crisis: The Perspective of Small Economies
How an organisation creates value (or benefit) for target customers in its business processes with a unique combination of programmes, sales conditions, distribution channels and promotion, and with a unique combination of tangible and intangible assets in its business processes.
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Towards an Innovative Ecotourism Business Model Framework
A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts.
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Cross-Channel Cooperation
An abstract description of how a business generates revenue and profits. It includes descriptions of the firm’s organization, its strategy, its products and services, its customer markets, its business processes, as well as the dependencies between these aspects.
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The Role of Business in the Innovation Ecosystem: The Case of Smart Cities as Business Models
An architecture, formula, or system to generate value for the user of a product or service, and to capture value for the business owner (such as profit generation).
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Industry 4.0 From a Management Perspective
Business’s core strategy for profitably doing activities.
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Creating a Research Laboratory on Big Data and Internet of Things for the Study and Development of Digital Transformation
Is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
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Techvolutionaries Navigating the Technological Frontier in Ndola: Zambia's Entrepreneurial Landscape During the Fourth Industrial Revolution (4IR)
A business model can be defined as a thorough and well-organized depiction of the manner in which an organisation generates, delivers, and acquires value. The concept of business operations refers to the comprehensive set of strategic decisions, operational procedures, undertaken activities, and interconnections that collectively establish a corporation's operational framework and revenue generation mechanisms within a specific market or industry. A business model serves as a framework that outlines the rationale and operational processes via which an organisation strategically aligns its resources, competencies, and products or services to effectively meet consumer demands, attain a lasting competitive edge, and ensure financial sustainability.
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Entrepreneurship and Big Data
A business model is a company's plan for how it will generate revenues and make a profit. It explains what products or services the business plans to manufacture and market, and how it plans to do so, including what expenses it will incur.
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Integrating Natural Language Requirements Models with MDA
An abstraction of how a business works. It provides a simplified view of the business structure that will act as the basis for communication or innovations and define the information systems requirements that are necessary to support the business.
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The Rise of Digital Transformation Within Businesses in the Pandemic
A plan for improving or developing a business in order to run it successfully.
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Digital Economy, Business Models, and Cloud Computing
A business model is a plan that identifies sources of revenue, the customer base, products, and details of financing. It simply tells how the business makes money.
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Pwning Noobs for Fun and Profit: eSports and Entrepreneurship
A firm’s business model is the way in which it creates value for its customers and owners and denies or reduces costs and the influence of competitors and the business environment within an industry.
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The Value of Choices: A Business Model Approach to Value
The business model is the logic of operation of a company. By means of that logic, internal and external resources and capabilities are dynamically mobilised, enabling a competitive positioning for the offering of products and services to the target public.
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Organizational Transformation: The Way to Sustainability
A corporation’s plan for making a profit. The method typically entails a pre-defined strategy for providing goods or services to an identified market.
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A Discourse on Entrepreneurial Discontinuance, Failure Rates, and Failed Business Models
A business model is the conceptual structure that supports a company's viability, including its purpose, goals, and continuing efforts to achieve them. A business model, at its most basic, is a specification that describes how an organisation achieves its goals.
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Entrepreneurship Learning: A Case Study
Defines the product or service that a team or organization will produce or deliver, its target audience, the method of creation, and its sources of income.
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Revenue Models in the Open Source Software Business
An abstraction of business, or the manifestation of strategy, that characterizes the business and specifies in which the company is positioned in its value-creating network.
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Digital Transformation and Business Models: Consumers Trust Case
Description of how a company develops its activities, what it offers (value proposition), to whom (segmentation) and what it represents in financial terms (revenue streams and cost structure). It’s all about creating value for the company, customers, and society.
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Planning of Wireless Community Networks
Describes a broad range of informal and formal models that are used by enterprises to represent various aspects of business, including its purpose, offerings, strategies, infrastructure, organizational structures, trading practices and operational processes and policies.
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Business Management Learning: Research for the Age of Transhumanism
A business model is a set of linked and planned activities designed to make profit in the marketplace. It is a way of doing business that an enterprise makes to maintain its sustainability.
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Agile Project Management in International Logistics Operations
A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts.
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Digital Convergence and Home Network Services in Korea: Part 2 – Business Models and Strategic Alliances
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HRIS Readiness Among Faculties in B Schools for Human Development
A model that links specific financial and nonfinancial measures in a logical chain to delineate how a company’s strategy translates into the accomplishment of stated financial goals. The board evaluates the business model for logical consistency, realism of targets, and statistical evidence that the relationships between performance metrics and stated goals are valid. See “Corporate Strategy” and “Key Performance Indicators (KPI).”
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Technology and Sharing Economy-Based Business Models for Marketing to Connected Consumers
A business model includes a set of activities (strategic choices, the value network, creating value and capturing value); scopes of business pillars (need, market technology customer interfaces, and financial aspects); elements (core capabilities, value configuration, revenue streams, cost structure, value proposition, customer segments, distribution & communication channels, partnerships, customer relationship,) and a range of actions (who, what, when, why, how and how much). a business model helps firms to structure their internal constituents (inbound, operations, R&D, marketing, distributions, services, and customer transactions) as well as external alignment with the suppliers, customers, distributors, and other external stakeholders.
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Internet of Things and Big Data-Driven Data Analysis Services for Third Parties: Business Models, New Ventures, and Potential Horizons
A design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.
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Increase the Diffusion Rate of Emergent Technologies
The logic of the value generation for customers, stakeholders and the company or research institution.
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Business Model Value Creation, Value Capture, and Information Technologies
The logic of how a business is run, how the enterprise creates and delivers value to customers, and captures value by converting payments received to profits.
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Social Innovation, Entrepreneurship, and Sustainability
Conceptual and operational tool that describes the value proposition (economic, social, ecological and psychological value) offered to the stakeholders through a product (good, service or idea), the organization and coordination of key activities (team and partners), and the design of a marketing plan, to deliver those values and achieve economic, social, ecological, and psychological sustainability.
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Opening Closed Business Ecosystem Boundaries With Digital Platforms: Empirical Case of a Port
Tool that helps organizations and ecosystems to define how they create and capture value from identified business opportunities.
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How to Create, Develop, and Sustain an Organization: The TIES Model
Conceptual and operational tool that describes the value proposition offered to the stakeholders through a product (good, service, or idea), the organization and coordination of key activities (team and partners), and the design of a marketing plan to deliver those values and achieve economic, social, ecological, and psychological sustainability.
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Digital Entrepreneurship and Personal Resilience on New Business Models in the 21st Century
A business model is an outline of how a company plans to make money with its product and customer base in a specific market.
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Moving Towards Internet of Behaviors: Transforming Business Models With Blockchain
A blueprint or approach that delineates how a company creates income and maintains its viability by leveraging its offerings, services and operational activities.
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Open Source Software Business Models and Customer Involvement Economics
Describes how profit is generated; captures business logic by separating independent/dependent variables and mediating/moderating effects.
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Entrepreneurship and Innovation in the Digitalization Era: Exploring Uncharted Territories
Describes a holistic view of how a business creates/designs value, delivers it to the market, and captures value in return.
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Drucker and Porter on Management and Analysis
It answers the questions; who is the customer? And what does the customer value? Magretta (2002) .
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Small and Medium Tourism Enterprise Survival in Times of Crisis: “El Capricho de Gaudí”
A business model is a “concise representation of how an interrelated set of decision variables in the areas of venture strategy, architecture, and economics are addressed to create sustainable competitive advantage in defined markets” ( Morris, Schindehutte, & Allen, 2005 : 727). It has six fundamental components: Value proposition, customer, internal processes/competencies, external positioning, economic model, and personal/investor factors.
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Key Challenges for Greek IT Start Ups: An Analysis of Founder Perceptions
The way an organization plans its activities and key relationships with customers and suppliers, in order to create and capture value.
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