Bm² : A Complete Theory of Business Models
The concept of Business Model (BM) has been widely used for around 20 years, both by academics and practitioners. However, its very nature is often misunderstood.
Bm² proposes a new theory of Business Models based on a comprehensive and universal framework to design, analyze and manage any business. It is also a "Body Of Knowledge" (BOK) to takle the subject of Business Models.
The "Bm2 - BMBOK" tab above gives access to the 3 different levels of the Bm2 paradigm. The column on the right gives direct access to the details of each level.
Bm2 Levels
The overall view of the Bm2 framework can be depicted as follows:
The general direction of the business is given by the BUSINESS FUNCTIONS
Business can then be analyzed at different levels:
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At a strategic level, the business is defined by the BUSINESS ACTIVITY
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At a tactical level, the business is defined by the BUSINESS SYSTEM
BUSINESS FUNCTIONS - The General Direction
Every single business is about just 3 BUSINESS FUNCTIONS: the Market Function, the Capture Function and the Industry Function.
The foundation of any business model analysis is about characterizing those 3 Business Functions for the case in question. Most of the concepts of the Bm² theory are somehow related to this approach.
BUSINESS ACTIVITY - The Strategic Level
Bm2 proposes 9 fundamental concepts/tools to design or analyze the BUSINESS ACTIVITY:
(Click on each one of 9 concepts/tools to access its associated component in the Business Activity)
BUSINESS SYSTEM - The Tactical Level
The Bm2 framework is based on a universal description of the BUSINESS SYSTEM:
(Click on each component to access its detailed description in the Business System)
Synthesis: The 7 Blocks
The Bm2 theory, based on different fields of analysis, regroups the above components of the BUSINESS ACTIVITY and the BUSINESS SYSTEM according to the following "7 Blocks":
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Blocks at strategic level (Business Activity): |
Blocks at tactical level (Business System): |
The Bm2 theory explores in details the different components of the 7 Blocks. In order to analyze a BM, a comprehensive approach is not always required. A "Relevance Principle" should apply: depending on the business case, some components may be more useful than others.
