business model

A business model is a human-made construct that describes how an organization creates, delivers, and captures value. It specifies the customer segments served, the products or services offered, the revenue and cost structure, and the key activities, resources, and partnerships that make the model operational. Parameters: (1) value proposition - what need the organization addresses, (2) revenue mechanics - how value is converted to income, (3) cost architecture - what resources and activities consume capital, (4) delivery mechanism - how the value proposition reaches the customer. The business model persists as a designed abstraction, codified in plans, financial projections, and operational procedures, and is revisited whenever market conditions, technology, or strategy shift. [formal: modelus negotii | substrate: behavior | horizon: a life | explicit: yes | epoch: 0.01]