Difference between revisions of "Business Models"

From NOAP
Jump to: navigation, search
 
Line 1: Line 1:
 
==What is a Business Model?==
 
==What is a Business Model?==
The concept of Business Models (BM) needs some clarification. It is a concept much spoken about, but more rarely defined. In the following, I will rely on (Wikipedia) for a description and definition. The article describes Business Model in this way:
+
The concept of Business Models (BM) needs some clarification. It is a concept much spoken about, but more rarely defined. I will rely on [http://en.wikipedia.org/wiki/Business_model Wikipedia] for the description and definition following here. The article describes Business Model in this way:
  
 
[…]describes a business model as consisting of nine related business model building blocks. Thus, a business model describes a company's business:
 
[…]describes a business model as consisting of nine related business model building blocks. Thus, a business model describes a company's business:
Line 19: Line 19:
 
These 9 business model building blocks constitute a business model design template which al-lows companies to describe their business model.
 
These 9 business model building blocks constitute a business model design template which al-lows companies to describe their business model.
  
(For a more detailed discussion of business models and how to work with them, see (Osterwalder 2007))  
+
(For a more detailed discussion of business models and how to work with them, see [http://www.privatebankinginnovation.com/en/wp-content/uploads/tools/Draft-Business-Model-Manual.pdf Osterwalder 2007])  
  
 
Even if the concept of BM can be described in a few words, as above, applying this model on any given business will take amounts of work and intelligent analysis. A Business Model can in principle only be used on an actual business, like a scientific journal or a publishing house. Here we will focus on some implications of this model thinking on how Open Access journals must perceive their business – as opposed to that of their publisher, or TA journals – in general, trying to focus on factors that are common to OA journals as such, with emphasis on traits where OA journals are different from TA journals.
 
Even if the concept of BM can be described in a few words, as above, applying this model on any given business will take amounts of work and intelligent analysis. A Business Model can in principle only be used on an actual business, like a scientific journal or a publishing house. Here we will focus on some implications of this model thinking on how Open Access journals must perceive their business – as opposed to that of their publisher, or TA journals – in general, trying to focus on factors that are common to OA journals as such, with emphasis on traits where OA journals are different from TA journals.

Revision as of 14:14, 18 September 2008

What is a Business Model?

The concept of Business Models (BM) needs some clarification. It is a concept much spoken about, but more rarely defined. I will rely on Wikipedia for the description and definition following here. The article describes Business Model in this way:

[…]describes a business model as consisting of nine related business model building blocks. Thus, a business model describes a company's business:

Infrastructure

  • core capabilities: The capabilities and competencies necessary to execute a company's business model.
  • partner network: The business alliances which complement other aspects of the business model.
  • value configuration: The rationale which makes a business mutually beneficial for a business and its customers.

Offering

  • value proposition: The products and services a business offers.

Customers

  • target customer: The target audience for a business' products and services.
  • distribution channel: The means by which a company delivers products and services to custom-ers. This includes the company's marketing and distribution strategy.
  • customer relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.

Finances

  • cost structure: The monetary consequences of the means employed in the business model. […]
  • revenue: The way a company makes money through a variety of revenue flows. A company's in-come.

These 9 business model building blocks constitute a business model design template which al-lows companies to describe their business model.

(For a more detailed discussion of business models and how to work with them, see Osterwalder 2007)

Even if the concept of BM can be described in a few words, as above, applying this model on any given business will take amounts of work and intelligent analysis. A Business Model can in principle only be used on an actual business, like a scientific journal or a publishing house. Here we will focus on some implications of this model thinking on how Open Access journals must perceive their business – as opposed to that of their publisher, or TA journals – in general, trying to focus on factors that are common to OA journals as such, with emphasis on traits where OA journals are different from TA journals.