During the Internet Bubble Business Model was one of the buzz words. Companies did not need a real strategy, a special competence, or even customers. The only thing needed was a web-based Business Model making vague promises about wild profits in a distant future (source Joan Magretta, HBR, 2002). Not strange that the term itself lost most of its power.
Now years further and wiser we know a business model definitely matters. Without a sound Business Model firms can launch as many new products and services they want to, only confusing customers more.
Companies with a sound Business Model know the value proposition, what the target client group is, which channels to use to approach them, what kind and type of relationship to maintain, what capabilities are required in-house or at a partner, how value is configurated, and of course how cost and revenue stream flow.
Having a proper Business Model not only clarifies things for you as a company; it helps to build and manage your reputation among your current and future clients.
