Financial Logic

Business Model

A business model — also referred to as the Sales Model in BRI usage — describes how an organization's production units are sold and the logic by which a strategy creates and captures value. Common types include discrete physical product, bulk material, professional service, transactional service, subscription, IP licensing, platform or multi-sided marketplace, processing fee, rental or lease, royalty, bounty, and metered service. In BRI's framework this is a deliberately narrow concept — one element within the Financial Logic dimension, focused on sales structure and the value creation/capture logic and assumptions — not the whole strategic logic of the business.

Where it fits — and the distinction from the Business Model Canvas

Within BRI's Strategy Framework the business model lives inside the Financial Logic dimension. The distinction worth drawing: BRI's "business model" is narrower than the term as used in Osterwalder's Business Model Canvas (BMC). In the BMC, "business model" means the entire nine-block strategic logic of a business — a scope that corresponds to the complete BRI Strategy Hypothesis Model across all six dimensions of the Strategy Framework, not to BRI's Business Model term. BRI reserves "Business Model" for the narrow sales-and-value-capture logic inside Financial Logic, while the framework adds what a single-snapshot canvas lacks — Staging and integrated, stage-configured evaluation. For the full treatment, see the Strategy Framework pillar at /supporting/strategy-framework. Related Terminology Index entries: Sales Model; Financial Logic; Unit Economics; Value Propositions; Strategy Hypothesis.

Sources

  • Alexander Osterwalder & Yves Pigneur, Business Model Generation (Wiley, 2010) — the Business Model Canvas, whose whole-canvas "business model" maps to the full BRI Strategy Framework rather than to BRI's narrower term.
  • BRI Associates, Strategy & Innovation Methodology — Business Model as the sales-and-value-capture element of the Financial Logic dimension (/supporting/strategy-framework).
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