Approaches. to. Business.Modeling:

Business modeling is a vast area of research and practice, which is gaining increasing importance
in the rapid development of e-business and globalisation (Holsapple, 2001). The
following are some approaches used in business modeling:
1. Textual description (e.g., abstract use cases)
2. Categories and visualization
3. Simulation approaches
4. Data/workflow-description programs
5. Process notation languages (e.g., Unified Modeling Language (UML))
The common categorization of B2B models seen in the literature is divisions based on target
audience or type of products/services involved in the business processes.
In order to understand this categorization, we have first to observe the two dimensions
through which companies obtain the products and services they need (Kaplan & Sawhney,
2000). The first dimension is related to the kind of products and services purchased, and the
second relates to the frequency with which companies make their purchases. The products
and services can be classified into manufacturing inputs and operating inputs. Manufacturing
inputs are raw materials applied in the manufacturing process. Operating inputs are
normally low-value products and services, usually commodities (e.g., advertising, utilities,
electricity, office supplies), also known as maintenance, repair, and operations (MRO)
inputs. In relation to the frequency inputs are acquired, there are both systematic sourcing
and spot-market sourcing.
Another more general and easier-to-remember categorization can be attained by focusing on
the processes that these e-business models are designed to facilitate. E-businesses can support
the relationship between a company and its customers and suppliers (usually commercial
transactions) and with related partners like collaborators and contractors. Thus e-business
models can be classified according to its focus (IBM, 2003a; Weill & Vitale, 2001):
� Focus on the process of selling goods and services to other companies (e-commerce
sell-side)
� Focus on the process of e-procurement and other processes related to the supply chain
management. Various sub-models in this category are as follows:
o Buyer model (few buyers, many sellers)
o Marketplace model (many buyers and many sellers)
o Longer-term relationship model (few buyers and few sellers)
o Seller model (few sellers, many buyers)
� Focus on collaboration between businesses, partners, and contractors (i.e., e-collaboration,