A new standard for Business Modeling: Value Delivery Modeling

by Sien Eylebosch

of the University of Gent (Belgium)

Introduction

Definition and use of value models

The business world today is a complex and unstable environment. New innovative technologies enter the market at any time, life cycles of products continuously decrease and globalization urges businesses towards intense competition.

These trends are making it very difficult for companies to be proactive and to adequately respond to new  developments. Furthermore, when taking decisions in business life, they do not have to only consider their own actions, but also those of numerous other groups, such as competitors, distribution channels, customers, the government, etc.

As an additional trend companies are investing more and more in ICT-equipment and –software. Related costs are reduced over the years, while performance is continuously improving. However, developing and implementing such information systems requires good knowledge of  business logic and of emerging changes in such information systems (Osterwalder, 2004).

A business model or value model will help managers to better cope with these trends.

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