CIMA E2 Syllabus A. Business models and value creation - The modern business model - Notes ^{1 / 9}

A business model is concerned with how an organisation is structured, the customers and  markets that it serves, the products and services that it provides, and how it creates value for stakeholders over time.

An understanding of the business model is important for the organisation to align it with their vision and to understand their market position.

Value creation is an important aspect of the modern business model

1. Define - How do we define value and who do we create value for?

2. Create - How do we use the resources and create value by turning them into outputs?

3. Deliver - How do we deliver value?

4. Capture - How do we capture and share residual value among stakeholders?