- Develop and maintain Business Models
A ‘business model ‘ describes the rationale of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts. The business model is an outcome of creating new organizational structures or changing existing structures to pursue a new opportunity. The business models of an organization are critical for its business success. New services and products must fit the existing business model, unless the organization is expressly willing to adapt its model to support the new product or service. Evaluating fit with the business model early and often throughout the development process helps prevent costly mistakes. The processes of developing, maintaining and evolving business models form a part of business strategy. Business model development generally refers to the activity of designing an organization’s business model. It is part of the business strategy process and involves design methods. There is a difference between crafting a new business model when none is in place, and maintaining or reconfiguring an existing business model. The differences between the two processes are profound (for example, lack of resource in the former case and inertia and conflicts with existing configurations and organizational structures in the latter). The two sub-process are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model.