Business model
A business model is the structure by which an organization creates, delivers, and captures value through its activities.
Investing for Programmers
A business model is the structure through which a company creates, delivers, and captures economic value, including how it can expand operations.
- How it is used
- Uses business models to classify companies, interpret financial results, evaluate investments, and narrow machine-learning research questions.
- How deep it goes
- Defines revenue generation and economic success, then evaluates industry effects, scalability, defensibility, capital needs, and risks.
- Examples
- Uses Walmart, Apple, Netflix, Spotify, GICS sectors, startups, MVPs, and social-media network effects as concrete comparisons.
- What you can do after
- Evaluate/understand companies by linking revenue logic and operating requirements to metrics, competitive risks, scalability, and investment decisions.
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Collaborative Software Design: How to facilitate domain modeling decisions
A business model is a representation of how an organization creates, delivers, and captures value through its business activities.
- How it is used
- Aligns software teams with company strategy so they can make decisions, prioritize work, and generate ideas that support organizational success.
- How deep it goes
- Maps offerings, customers, infrastructure, and finances through the Business Model Canvas, emphasizing value propositions and stopping short of implementation design.
- Examples
- Uses BigScreen’s mobile ticketing campaign, monolithic ticketing system, completed canvas, domain language, and sticky-note color legend.
- What you can do after
- Apply it via the Business Model Canvas to build shared business understanding before making software decisions.
Tech Startup Toolkit
A business model describes how an organization creates value and captures value through its revenue-generating activities, including how a venture capitalist operates and allocates resources.
- How it is used
- Guides founders in choosing how the company sells, delivers, and gets paid while aligning fundraising with investor incentives.
- How deep it goes
- Defines revenue, payment, and delivery choices, then stops short of detailing specific model types or financial mechanics.
- Examples
- Uses software-as-a-service versus hardware, mismatched investment amounts, and elevator-pitch revenue streams as practical examples.
- What you can do after
- Evaluate and choose a business model before fully staffing, developing the product, or acquiring customers.
Related concepts
- business model canvasused by · The Business Model Canvas is a visual strategic-management framework for describing and analyzing the key elements of a business model.
- revenueproduces · Revenue is the income an organization earns from its ordinary business activities before expenses are deducted.
- business-to-consumerincludes · Business-to-consumer describes the sale or provision of products or services directly from businesses to individual consumers.
- business planpart of · A business plan is a structured document describing an organization’s objectives, strategy, operations, business model, and expected financial or operational results.
- venture capitalistused by · A venture capitalist is an investor or investment professional who provides capital to high-growth private companies, typically in exchange for equity.
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