ABSTRACT
This chapter aims to answer a fundamental question, namely, why does business modeling in general, and its innovation in particular, matter? It describes the relevancy and origins of business model thinking, followed by an evolutionary research timeline. The chapter explains the main reasons for the fuzziness of the “business model” concept. It introduces our understanding of this research domain and presents a comprehensive business model framework template. An effective business model is a tremendously valuable asset to a company. Many of these models are process-based, recognizing that organizations accomplish their tasks by doing things, that is, performing processes. Academics and practitioners alike recognize and appreciate the potential of the business model concept. Several attempts have been made to distinguish business model abstraction levels. Two factors are mostly neglected in the business model literature: leadership and culture. Thinking about business models, and understanding the balance, interdependencies, and synergies between the building blocks are all at the core of business model innovation.
