Continuous Business Model Planning (CBMP) needs a “language” to define how the Business operates, in conjunction with Customers and Partners, both As-Is and To-Be. It is useful to do that in terms of Business Models. A Business Model (BM) defines how a Business, in a particular product-market/customer combination, creates and delivers Value for the stakeholders involved.
BMs may be Customer-facing, as well as internal. As any Activity within the Business can be considered to be part of one or more BMs, BMs can be used to decompose the mission of the Business therefore. CBMP uses Business Models as Units for Strategic Planning. In terms of modeling, the scope of a Plan is covered by one or more BMs. These BMs may evolve over time, from Phase to Phase, or may alter, from one Alternative to another within the same Phase.
During Discovery, Business Canvases, such as the Business Model Canvas, can be used to represent BMs. For purpose of prototyping, the Value Cube, as a more “canonical” BM representation, is used. It is based on the “Business Model Cube” work of prof. Peter Lindgren of Aarhus University. The equivalent term “Business Model Cube” is used in the CBMP Training program and in Value Management Platform collateral as well.