Towards a Business Model Validation Framework: A System Engineering Perspective

• Main Authors: SIKIMIC, Uros, NARASIMHALU, Arcot Desai
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Computer Sciences; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/2978
• Institution: Singapore Management University

Business Model (BM) presents a configurational formation composed of relevant building elements. These elements can be combined and permuted in multiple ways, but not all combinations and permutations actually form valid BMs. Diverse BM configurations are commonly the source of innovation itself and the overall driver of firm's success. However, there are no prior attempts to introduce a framework enabling analysis and validation of internal compatibility among the BM building elements. We adopt a systemic view of BMs and apply the internal compatibility validation procedure from system engineering. We perform two literature reviews, one summarizing elements that can be applied in BM design, and another exploring existing BM design patterns. By taking a systemic approach this study considerably improves the theoretical understanding of configurational compatibility within a BM. It also provides managers and industry professionals with a generic framework for internal compatibility validation of innovative BMs.