Business model

As explained in 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.

A business model represents how an organization creates, delivers, and captures value through its activities. Shared understanding of it helps teams make better decisions, prioritize effectively, and design software that supports company success. section 2.3.1

Use the Business Model Canvas to organize the model into four connected areas:

• Offerings: identify value propositions—the reasons customers choose the organization over competitors. section 2.3.1
• Customers: describe customers, communication relationships, and channels. section 2.3.1
• Infrastructure: capture key activities, resources, and partners required for success. section 2.3.1
• Finances: record the cost structure and main revenue streams. section 2.3.1

BigScreen’s “Anytime, Anywhere” campaign

Before tackling the monolithic ticketing system, the team examines the business motivation behind enabling mobile ticket purchases. A completed canvas captures the domain language and knowledge validated with domain experts. section 2.3.1

Figure 2.7 The four sections of the Business Model Canvas tool. This canvas gives us an understanding of what we offer, who we offer it to, what we need to do to succeed, and what finances we have.

Browse the four-section canvas structure: offerings, customers, infrastructure, and finances. section 2.3.1

How Collaborative Software Design: How to facilitate domain modeling decisions covers it

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.

How it connects

Connects strategy with value propositions, customers, channels, key activities, resources, partners, cost structure, revenue streams, and collaborative modeling.

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Also explained in

• 

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  Investing for ProgrammersA business model is the structure through which a company creates, delivers, and captures economic value, including how it can expand operations.
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  Tech Startup ToolkitA 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.

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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.

This explainer was generated by Manning's knowledge graph from the text of Collaborative Software Design: How to facilitate domain modeling decisions. The section links point to the parts of the book it draws on.