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Business Model Analysis: A Multi-Method Approach

Oliver Grasl transentis management consulting GmbH Kranzplatz 5-6 65193 Wiesbaden mobile: +49 173 6546727 e-mail: oliver.grasl@transentis.com August 25, 2008

Abstract

A business model is a set of assumptions about how an organization will perform by creating value for all the players on whom it depends, not just its customers. This paper discusses a multi-method approach to consistently analyzing the structure, the behaviour and the dynamics of business models in order to identify possible optimizations. The method utilizes object-oriented analysis for analyzing structural and behavioral aspects and system dynamics to analyze value creation dynamics.

Keywords:

Business model, System Dynamics, Object-oriented Analysis

and Design, UML, Method Engineering, Business Engineering

1 Introduction

A business model is a set of assumptions about how an organization will perform by creating value for all the players on whom it depends, not just its customers. In essence, a business model is a theory that is continually being tested in the marketplace (Magretta, 2003, p. 44). A good business model remains essential to every organization, whether it is a new venture or an established player (Magretta, 2002, p. 4). A business model describes (Kagermann and Österle, 2006, p. 17),(Müller-Stewens and Lechner, 2005, p. 410):

1

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The customers, products, sales channels and the revenue structure of an enterprise. The position of an enterprise within its value network and the nature of its business relationships. The underlying economic logic of an enterprise. 17) predict that in future business

Kagermann and Österle (2006, p. innovation.

model innovation will be more important for business success than product In practice it has proved dicult for rms to systematically design and congure their business model:

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The business model concept is not used consistentlyboth in research and in...