Business Model Innovation Learning Path

Business model definition and value creation

A business model describes how an organization creates, delivers, and captures value in economic, social, cultural, or other contexts. It specifies how the business operates—what it offers, who it serves, how it earns money, and how it structures activities and resources to generate profit. In this sense, business model construction and modification are closely tied to business strategy, and business model innovation is often described as iterative and potentially circular. Value creation is reflected in how the model aligns internal design choices (e.g., customer selection, offerings, resource configuration, go-to-market, and profit capture) with economic logic (costing, pricing, and revenue structure) and strategic outcomes (sustaining competitive advantage). The content also highlights that business models are not purely firm-internal: they can depend on complementarities with partners and on how the firm interacts with other players in an industry network. Additionally, platform-oriented business models shift value creation from linear “pipes” (producing and pushing goods downstream) to networked systems where users and participants create and consume value, with monetization often involving subscriptions, advertising, and data/metadata.

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Business model innovation as iterative process

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