Key Features

All four key features of BMN as explained as follows:

• Who (i.e., the customer): Every business concept caters to a specific clientele? As a result, it should be able to answer the query, “Who is the customer?”. We highlight the definition of the target customer as one fundamental dimension in building a new business model, based on the assumption that “failure to correctly describe the market is a critical element linked with venture failure”.
• What (i.e., the value proposition): The second-dimension outlines what the target consumer is supplied, or, to put it another way, what the customer values. The customer value proposal, or simply the value proposition, is a term used to describe this concept. It can be defined as a comprehensive perspective of a company’s bundle of customer-valued products and services.
• How (i.e., the value chain): A company must master several processes and activities to create and spread its value offer. The third dimension in the design of a new business model is comprised of these processes and activities, as well as the resources and competencies involved, as well as their orchestration inside the focus firm's internal value chain.
• Why (i.e., the profit mechanism): The fourth component, value, illustrates why the company model is financially sustainable, and hence is linked to the revenue model. In essence, it unites components such as the cost structure and applied revenue techniques, and it speaks to the fundamental question of each business, namely, how to make money.