Business models and process models

Business process models define the way organizations achieve their goals in the context of their business strategy. In doing so, they focus on the ‘how’ question of business operations. The goals to be achieved are part of the ‘why’ and ‘what’ questions of business operations, which are described in business models. Put in a different way, business process models define the operationalization of business models - or business models explain why business process models exist. In this chapter, we first take a look at the specification of business models. We discuss two techniques for business model specification: the Business Model Canvas and the Business Model Radar. Next, we explore the precise relation between business models and process models, taking these two business model specification techniques as a basis. Then, we pay attention to the mapping of business model elements to process model constructs, again using the two selected techniques. We contextualize all of this in the setting of digital business transformation, paying attention to complexity of business models, and hence, of business process models and the role of advanced information technology. We end the chapter with conclusions, presenting a bi-speed business engineering model that combines stability and agility in the evolution of a digital, process-oriented firm.