COMPUTER APPLICATIONS
E COMMERCE AND E BUSINESS APPLICATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A paper model of your business.
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A story of how your enterprise will create, deliver, and capture value.
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A model made out of bricks
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None of the above.
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Detailed explanation-1: -A business model is a story about how an organization creates, delivers, and captures value. Therefore, before any organization begins thinking about business model innovation it must start by understanding how the organization currently creates, delivers, and captures value.
Detailed explanation-2: -You capture value back from your customers through your revenue streams. For business modeling purposes, it is important to list both your sources of revenue and specific pricing. If you aren’t sure about specific pricing yet, ballparks are okay.
Detailed explanation-3: -A business model captures your hypothesis for how your business will generate revenue and reach profitability-charging a price for an offering you create at a sustainable cost.
Detailed explanation-4: -These are closely related terms that are significant when you are designing a new business model or undertaking a process of business model innovation. Value creation is creating value for your customers. The more value the better. Value capture is capturing the value you create and turning it into profit.