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business model value
Sourced From: vises.org.au

I found this informative how it ties value to the business model and reflects measurement of economic value as a realisation of business value by the customer.

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The concept of a business model facilitates analysis of the way in which a firm derives economic value from a newly developed technology. Indeed Chesbrough and Rosenbloom (2002) have argued that it is the business model adopted, more so than the technology itself, which is critical to the success of the commercialisation of new technology.

The concept is concerned with how the firm defines its competitive strategy through the design of the product or service it offers to its market, how it charges for it and what it costs to produce. How it differentiates itself from other firms by the nature of its value proposition. It also describes how the firm integrates its own value chain with that of other firms in the industry’s value networks.

In this context the business model is designed to answer a series of questions essential to any business – who are the customers, what do they value, how that value can be delivered to the customer at an appropriate cost and how the business deploys its assets.