1. Concept and Evolution of
Business Model
Udit Vikram singh
11ex052

2. Content
 Introdution
 Existing theory
 Business Model Concepts
 Types of Business model
 Conclusion

3. Introduction:
 What is a Business Model?
 How business Model Change over time?
 Different types of model

4. Existing Theory:
 Deconstrustion Phenomenon:
Construction of vertically integrated value chain in many industries .
Proclaimed by industrial organisation theory.
Best applied when boundaries of an industries are clearly defined.
 Since the end of the 20th century, various industries are undergoing
fundamental changes and a deconstruction of these integrated
business models can be observed.
 The deconstruction of former integrated value chains of industries into
ever smaller segments (layers) becoming distinct businesses took
place.
 As a consequence, traditional de®nitions of businesses and industries
become obsolete and vertically integrated companies are facing
competitors either specialised in one step of the value chain, or
combining various value steps in a network of companies applying
best-practice resources in a given industry.
 Such business migration does not only create new businesses and
markets, it also causes separate industries to converge

5. Business Model Concept
 deconstructing the value chain provides many opportun-
ities for the creation of new businesses. Because of that, the
deconstruction phenomenon can be considered as a necessary
development and basic condition that allows di€erent business models
to emerge.
 Amit and Zott refer to the architectural configuration of the
components of transactions as the core of business models, meaning
the specific information, service, or product that is exchanged and/or
the parties that engage in the exchange.
 Hamel favours the other extreme in applying a spectrum of modules
to form the business model, including customer interface, core
strategy, strategic re- sources and value network.
 Mahadevan has developed a framework for the understanding of
business models in the internet context and has identi®ed three
elements of a business model, which include the value stream for the
business partners and the buyers, i.e. the revenue stream as well as
the logistical stream.

6. Contd….
 Venkatraman and Henderson define a business model as a co-
ordinated plan to design strategy along three vectors (customer
interaction, asset configuration, knowledge leverage).
 Timmers considers a business model as an `architecture for the
product, service and information ¯flows, including a description of the
various business actors and their roles; a description of the potential
benefits for the various business actors; and a description of the
sources of revenues'. He classifies them on the basis of the degree of
innovation and functional integration required.
 Magretta states that business models are kinds of stories that explain
how companies work and that contain specific characters, a plausible
motivation and a plot that describes how value is delivered.
 More simply, the term `business model' is composed of the words
`business' and `model‘ . The expression `business' refers to the fact
that a company does business with the purpose of making profit, while
the term `model' is a simplified description or representation of a
system that is composed of different elements and the relationships
between them. Thus, a business model tries to give an integrated and
consistent picture of a company and the way it aims to generate
revenues.

7. Types of Business Model
• Integrated Model

8. Orchestrator Model

9. Market Maker Model

10. Layer Player Model

11. Conclusion
• The developed concept presents a challenging research
opportunity that builds on the few existing theoretical pieces,
but goes beyond the existing literature on business models.
The contribution of this paper lies in developing a
con®guration (typology) of di€erent business models (In-
tegrator, Orchestrator, Layer Player, Market Maker) by
including the value chain constellation, a revenue potential
perspective and the market power of innovators compared to
the owners of complementary assets based on the underlying
argument of the resource based view.