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Business model innovation is an iterative and potentially circular process. [1] A business model describes how an organization creates, delivers, and captures value, [2] in economic, social, cultural or other contexts. The model describes the specific way in which the business conducts itself, spends, and earns money in a way that generates profit.
The Business Model Canvas is a strategic management template used for developing new business models and documenting existing ones. [2] [3] It offers a visual chart with elements describing a firm's or product's value proposition, [4] infrastructure, customers, and finances, [1] assisting businesses to align their activities by illustrating potential trade-offs.
Pure dual licensing models are not uncommon, as a more nuanced business approach to open source software businesses has developed. Many of these variations are referred to as "open core" model, where the companies develop both open source software elements and other elements of value for a combined product.
The razor and blades business model[1] is a business model in which one item is sold at a low price (or given away) in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and product sample marketing, which do not depend on complementary products or services.
Business model pattern. Business model patterns are reusable business model architectural components, which can be used in generating a new business model. [1] In the process of new business model generation, the business model innovator can use one or more of these patterns to creating a new business model.
Inclusive business model. An inclusive business model is a type of business model that seeks to create value for low-income communities by integrating them into a company's value chain on the demand side as clients and consumers, and/or on the supply side as producers, entrepreneurs or employees in a sustainable way. [1]
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