Business model architecture by design

Abstract

In this article, we view business models as complex deal-making activity systems organized to create, deliver, and capture value. Unlike some other viewpoints, we emphasize both system components and their interconnection. Business activities are carried out by a network of actors drawing on a network of resources, and individual firms seek to configure these intersecting networks to enhance their competitive positioning. The business model literature refers to the significance of antecedent activities in providing context - opportunities the firm decides to pursue, the strategy adopted, and requisite capabilities. Drawing on this literature, we propose an approach to framing business model context. Drawing on the information systems literature, we identify a toolkit facilitating activity system architecture design. We suggest how this both draws out the underlying complexity of a business model and shows how a multiplicity of views makes sense.