Business model design generally refers to the activity of designing a company’s business model. It is part of the business development and business strategy process and involves design methods. We can highlight the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when a furniture company shifts from selling its products to a leasing model.
Business model design (to) refers to the process of crafting a business model when none is in place and business model reconfiguration is the (for) process of changing an existing business model, (also) it highlights(ing) that the two processes are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model. As such, innovating the business model can help coordinate technological and organizational innovations and secure partner networks or capabilities that are required to successfully preserve and utilize the embedded value in resources.
By rethinking the three value dimensions; for example, how value is created, delivered and captured, business model innovation provides a more holistic approach when seeking to align the value creation logic of the company with principles of circularity.
The design of many business models follows a similar process: