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Hi Dr. E-Commerce,

What exactly is a business model? I’ve scanned all available literature but I could not find an answer. I am especially interested how "business model" fits into strategy theory. I would be very grateful if you could help me. I am a student of business economy in Berlin. Thanks for your help.

Achim

Dear Achim:

Just as a model aeroplane is a representation of a real aeroplane, a business model is a representation of a real business. And just like a model aeroplane can be a simply copy of a real aeroplane or a highly detailed duplicate, a business model can simply express the concept of a business idea or be a highly detailed model of a business idea.

Because the Internet is changing the way we do business, people are exploring various business models, sometimes rejecting old ones and developing new ones. Hence, we hear the term a lot these days. Moreover, "business model" is a trendy phrase and if you want to impress people involved in e-business, be sure to include it in conversation. For example if someone tells you a silly idea for new business, don't tell him, "that's a silly idea." Tell him, "I can't see that business model working."

If you want more information about Business Articles for Electronic Commerce, I recommend the article of the same name at http://www.electronicmarkets.org/netacademy/
publications.nsf/all_pk/949

All the best,

Dr. Ecommerce