Business Models, Business Strategy and Innovation

Business Models, BusinessStrategy and InnovationDavid J. TeeceWhenever a Business enterprise is established, it either explicitly or implicitly employsa particular Business model that describes the design or architecture of the value creation,delivery, and capture mechanisms it employs. The essence of a Business model is in de-fining the manner by which the enterprise delivers value to customers, entices customersto pay for value, and converts those payments to profit. It thus reflects management shypothesis about what customers want, how they want it, and how the enterprise canorganize to best meet those needs, get paid for doing so, and make a profit. The purposeof this article is to understand the significance of Business models and explore theirconnections with Business Strategy , Innovation management, and economic theory. 2009 Published by Elsevier in the global economy have changed the traditional balance between customer andsupplier. New communications and computing technology, and the establishment of reasonablyopen global trading regimes, mean that customers have more choices, variegated customer needscan find expression, and supply alternatives are more transparent.

Business Models, Business Strategy and Innovation David J. Teece Whenever a business enterprise is established, it either explicitly or implicitly employs

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