Value of Business Models

• How many words would it take to provide the same information as a map of San Diego? 

• Similarly, business processes and systems can also be difficult to describe concisely using words alone. 

• Business models, such as a map, allow us to depict the important features of business processes and systems clearly and concisely.

Organizational changes, including mergers, acquisitions, outsourcing, offshoring, product innovation, and continuous process improvement, and other business transformations are common.

Change, however, can be expensive and risky. Careful planning is necessary to implement change in a way that minimizes those costs and risks.

Business models create value by providing communication, training, analysis and persuasion tools.

• Presenting information more concisely and clearly than a written description.

• Managing complexity by incorporating only the essential elements.

• Eliciting requirements when used to interview involved parties.

• Reconciling viewpoints by providing an integrated view.

• Simulating potential changes.

• Specifying requirements for the actual business process.