1.4 - Develop and maintain business models
PCF ID: 20944 | Elements: 12 | Metrics Available: N | Benchmarkable: 0
Definition
Establishing how an organization creates, delivers and captures value or makes profit. Identify the products or services that a business will sell, its target market, anticipated expenses, and other core aspects of its modus operandi. Revise the plan as required to reflect changing circumstances.
Overview
This process group covers develop and maintain business models within the broader context of Develop Vision and Strategy.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 1.4.1 | Develop business models | 20945 | 4 | N |
| 1.4.2 | Maintain business models | 20950 | 4 | N |
| 1.4.3 | Establish business model governance | 20955 | 0 | N |
1.4.1 - Develop business models
PCF ID: 20945
Definition: Creating an economic model that describes the goals of an organization and the business processes needed to achieve those goals. This involves information gathering, securing necessary approvals and authorizations, integrating with preexisting models, including the general business concept [10002] and business strategy [10015], and formally accepting the model as the basis for organization's day-to-day operations.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.4.1.1 | Assemble business model information | 20946 | 0 | N |
| 1.4.1.2 | Secure appropriate approvals | 20947 | 0 | N |
| 1.4.1.3 | Identify integration points with existing models | 20948 | 0 | N |
| 1.4.1.4 | Adopt the business model | 20949 | 0 | N |
1.4.1.1 - Assemble business model information
Definition: Collecting all relevant materials needed to develop the business model, so that it can adequately model its processes.
1.4.1.2 - Secure appropriate approvals
Definition: Obtaining required permissions, licenses and authorizations that legitimize the business, help to mitigate associated risks and safeguard the operations.
1.4.1.3 - Identify integration points with existing models
Definition: Ensuring coherence with pre-exsiting models to avoid contradictions between models. Make sure that all models represent the same long-term vision.
1.4.1.4 - Adopt the business model
Definition: Consenting to a particular business model and formally accepting it to serve as the set of guiding principles in operating the company.
1.4.2 - Maintain business models
PCF ID: 20950
Definition: Revising and updating business models to reflect the changes in the marketed services, product inventory, market behavior, available resources or accrued expenses. Determine how and when to modify the accepted business model in response to incoming feedback.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.4.2.1 | Establish business model maintenance parameters | 20951 | 0 | N |
| 1.4.2.2 | Accept business model feedback parameters | 20952 | 0 | N |
| 1.4.2.3 | Prioritize and manage incoming feedback | 20953 | 0 | N |
| 1.4.2.4 | Update existing models | 20954 | 0 | N |
1.4.2.1 - Establish business model maintenance parameters
Definition: Determining the timeline, procedures and responsibilities for reviewing the business model and for updating it to best serve the organization.
1.4.2.2 - Accept business model feedback parameters
Definition: Deciding the type of responses, reactions, sentiments and insights that are crucial to be taken into consideration with business model maintenance.
1.4.2.3 - Prioritize and manage incoming feedback
Definition: Evaluating the feedback regarding products, services, processes or resources. Determine which judgments are critical and mandate changes to the current business model to better deliver the desired value
1.4.2.4 - Update existing models
Definition: Modifying the business models that are presently in use in response to incoming feedback or changing markets to achieve the enterprise business goals.
1.4.3 - Establish business model governance
PCF ID: 20955
Definition: Creating and implementing a strategy, responsibilities and control mechanisms for managing business models that are timely, efficient and cost-effective.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 12 elements
| ID | Name | Definition |
|---|---|---|
| 1.4 | Develop and maintain business models | Establishing how an organization creates, delivers and captures value or makes profit. Identify the ... |
| 1.4.1 | Develop business models | Creating an economic model that describes the goals of an organization and the business processes ne... |
| 1.4.1.1 | Assemble business model information | Collecting all relevant materials needed to develop the business model, so that it can adequately mo... |
| 1.4.1.2 | Secure appropriate approvals | Obtaining required permissions, licenses and authorizations that legitimize the business, help to mi... |
| 1.4.1.3 | Identify integration points with existin... | Ensuring coherence with pre-exsiting models to avoid contradictions between models. Make sure that a... |
| 1.4.1.4 | Adopt the business model | Consenting to a particular business model and formally accepting it to serve as the set of guiding p... |
| 1.4.2 | Maintain business models | Revising and updating business models to reflect the changes in the marketed services, product inven... |
| 1.4.2.1 | Establish business model maintenance par... | Determining the timeline, procedures and responsibilities for reviewing the business model and for u... |
| 1.4.2.2 | Accept business model feedback parameter... | Deciding the type of responses, reactions, sentiments and insights that are crucial to be taken into... |
| 1.4.2.3 | Prioritize and manage incoming feedback | Evaluating the feedback regarding products, services, processes or resources. Determine which judgme... |
| 1.4.2.4 | Update existing models | Modifying the business models that are presently in use in response to incoming feedback or changing... |
| 1.4.3 | Establish business model governance | Creating and implementing a strategy, responsibilities and control mechanisms for managing business ... |
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