Editing Business model (section)

==Design==
'''Business model design''' generally refers to the activity of designing a company's business model. It is part of the [[business development]] and [[business strategy]] process and involves [[design methods]]. Massa and Tucci (2014)<ref>Massa, L., & Tucci, C. L. 2014. "Business model innovation". In M. Dodgson, D.M. Gann & N. Phillips (Eds.), ''The Oxford handbook of innovation management'': 420–441. Oxford, UK: Oxford University Press.</ref> highlighted the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when the tooling company Hilti shifted from selling its tools to a leasing model. They suggested that the differences are so profound (for example, lack of resource in the former case and inertia and conflicts with existing configurations and organisational structures in the latter) that it could be worthwhile to adopt different terms for the two. They suggest business model design to refer to the process of crafting a business model when none is in place and business model reconfiguration for the process of changing an existing business model, also highlighting that the two processes are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model.

=== Economic consideration  ===

Al-Debei and Avison (2010) consider value finance as one of the main dimensions of business modelling which depicts information related to costing, pricing methods, and revenue structure. Stewart and Zhao (2000) defined the business model as "a statement of how a firm will make money and sustain its profit stream over time."<ref name="Stewart and Zhao (2000)">Lee, G. K. and R. E. Cole. 2003. Internet Marketing, Business Models and Public Policy. Journal of Public Policy and Marketing 19 (Fall) 287–296.</ref>

=== Component consideration ===

Osterwalder et al. (2005) consider the Business Model as the blueprint of how a company does business.<ref name="Osterwalder et al. (2005)">Osterwalder, A., Pigneur, Y. and C. L. Tucci. 2005. Clarifying Business Models: Origins, Present, and Future of the Concept. Communications of the Association for Information Systems 16 1–40.</ref> Slywotzky (1996) regards the business model as "the totality of how a company selects its customers, defines and differentiates it offerings, defines the tasks it will perform itself and those it will outsource, configures its resources, goes to market, creates utility for customers and captures profits."<ref name="Slywotzky (1996)">Slywotzky, A. J. (1996). ''[[Value Migration: How to Think Several Moves Ahead of the Competition]]''. Boston, MA: Harvard Business Review Press.</ref>

=== Strategic outcome ===

Mayo and Brown (1999) considered the business model as "the design of key interdependent systems that create and sustain a competitive business."<ref name="Mayo and Brown (1999)">Mayo, M. C. and G.S. Brown. 1999. Building a Competitive Business Model. Ivey Business Journal63 (3) 18–23.</ref> Casadesus-Masanell and Ricart (2011) explain a business model as a set of "choices (policy, assets and governance)" and "consequences (flexible and rigid)" and underline the importance of considering "how it interacts with models of other players in the industry" instead of thinking of it in isolation.<ref>{{Cite news|url=https://hbr.org/2011/01/how-to-design-a-winning-business-model|title=How to Design a Winning Business Model|newspaper=Harvard Business Review|access-date=2016-11-23}}</ref>