Explain Business Modeling and Its Elements

Business Modeling is a process to create model for business. It is built on the basis of organization's goal, objective and strategic plan. It is built based on business processing which is handled by individual to achieve common goal.

              It is representation of business as one large system. It should be called as mirror of the business process. In ERP system, It is first of activities

Elements of Business Modeling:

1. Customer Segments: Which customer you are serving, what job they want to get done.
2.  Value Proposition: What business is offering
3. Channels: How customer wants us to reach them, what are interaction points.
4. Customer Relationships: What relationships are established with each segment of customer (Personal, Automated, Acquisitive, retentive)
5. Revenue Streams: How to generate transaction and recurring revenue.
6. Key Resources: Essential Assets.
7. Key Activities: Essential actions required.
8. Key Partners: On whom you can rely.
9. Cost Structure: Key elements drive your cost.