Business model
A business model describes the rationale how an organization creates, delivers, and captures value – economic, social, or other forms of value. The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
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Business Model Canvas: Nine business model building blocks, Osterwalder, Pigneur, & al. 2010

Business model design template: Nine building blocks and their relationships, Osterwalder 2004.
Formal descriptions of the business become the building blocks for its activities. Many different business conceptualizations exist; Osterwalder’s work and thesis (2010, 2004) propose a single reference model based on the similarities of a wide range of business model conceptualizations. With his business model design template, an enterprise can easily describe their business model
● Infrastructure o Key Activities: The activities necessary to execute a company’s business model.
o Key Resources: The resources that are necessary to create value for the customer.
o Partner Network: The business alliances which complement other aspects of the business model.
● Offering
o Value Proposition: The products and services a business offers. Quoting Osterwalder (2004), a value proposition “is an overall view of products and services that together represent value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another.”
● Customers
o Customer Segments: The target audience for a business’ products and services.
o Channels: The means by which a company delivers products and services to customers. This includes the company’s marketing and distribution strategy.
o Customer Relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.
● Finances
o Cost Structure: The monetary consequences of the means employed in the business model..
o Revenue Streams: The way a company makes money through a variety of revenue flows. A company’s income.