Business Model, Operating Model or Revenue Model?
By simple definition, a business model describes how an organization creates, delivers and captures value. On other hand, an operating model describes how an organization delivers value. Revenue model is how an organization captures value by making money in turn for the value delivered. Quite simply operating model is a subset of the larger concept ‘business model’.
Re-imagining Business Model Canvas
Though BMC is a very powerful representation of business model elements, it does not provide the logical interactions between the elements. Hence, re-imagining the BMC as a network view with connected links between the business model elements will be much useful. Figure 2.9 provides the re-imagined view of BMC. In this extended model, business capabilities can be summed up as the combination of key partners, key resources and key activities.
This re-imagined perspective portrays the dynamic capabilities of the firm in terms of business model elements.