What is a business model? The business model can be defined as the purpose or construction of the business and the goal(s) that it is “architected” to pursue.
The business model in terms of architecture will define a complete and comprehensive plan of implementation. It will categorize functions of the business and specify the requirements of it function. It will also provide identification of “Line of businesses (LOB’s)” within the function of the business model.
Functions of the Business Model
The function of the Business Model is the set of “actions” that are conducted by the enterprise. These functions are steered efficiently through business process management (BPM).
Within the enterprise architecture – functions can be viewed as the components that create the end results of the enterprise such as “sales” and/or “services” of widgets. Recall the business model will define implementation.
Tasks of Creating and Evaluating Functions of the Business Model
· Define All Major Functions of the Enterprise
· If Possible, Divide The Major Functions into Sub functions
· Decompose the Functions until Single Actions are Defined
· Order the Function Hierarchically
· Once in Utilization Review the Quality of the Functions
· Continually Evaluated the Performance of the Functions through BPM Methodology
In Summary
The business model defines the implementation of the enterprise. They are actions of the enterprise. The enterprise utilizes these actions to create the end results of “sales” and/or ‘services”.