ABSTRACT
This chapter offers a novel perspective on how intellectual capital (IC) can be applied to the notion of business models. It argues that any type of technological development through the ages has had IC at its core, right from invention of the plough, gunpowder, and steam engines to computers. One of the reasons for this is that business models are concerned with delivering a value proposition to users and/or customers, but the value proposition and the resources that support it never stand alone because they need to be supported by other activities. The problem with contemporary frameworks for visualizing companies' business models is that they often take the form of generic organization diagrams illustrating the process of transforming inputs to outputs in a chain-like fashion. Baden-Fuller and Morgan argue that business models are distinct ways of doing business that can be distinguished from alternative modes of doing business and furthermore can be classified by nature of how they are configured.
