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The starting point for any good discussion, meeting, This concept can become a shared language that
or workshop on business model innovation should allows you to easily describe and manipulate business
be a shared understanding of what a business model models to create new strategic alternatives. Without
actually is. We need a business model concept that such a shared language it is diΩicult to systematically
everybody understands: one that facilitates descrip- challenge assumptions about one’s business model
tion and discussion. We need to start from the same and innovate successfully.
point and talk about the same thing. The challenge is
that the concept must be simple, relevant, and intui- We believe a business model can best be described
tively understandable, while not oversimplifying the through nine basic building blocks that show the
complexities of how enterprises function. logic of how a company intends to make money. The
nine blocks cover the four main areas of a business:
In the following pages we oΩer a concept that allows customers, oΩer, infrastructure, and financial viability.
you to describe and think through the business model The business model is like a blueprint for a strategy
of your organization, your competitors, or any other to be implemented through organizational structures,
enterprise. This concept has been applied and tested processes, and systems.
around the world and is already used in organizations
such as IBM, Ericsson, Deloitte, the Public Works and
Government Services of Canada, and many more.

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