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A business model includes a combination of two concepts: a business and a model. A business is an economic or entrepreneurial activity aimed at making a profit systematically. A model in the usual sense is an abstract description of an object in some form that differs from the form of real execution. It follows from these concepts that a business model is an analytical, conceptual tool designed for the abstract description of various types of activities, the study of a complex business system, aimed at making a profit and reflecting the logic of the business.

The business model is used to describe the basic principles of the creation, development and successful operation of the organization. The details of the business model are determined by the goals of modeling and the accepted point of view. Within the framework of the business model, all objects, processes, rules for performing operations, the existing development strategy, as well as criteria for evaluating the effectiveness of the system are displayed.

The process of finding out or reproducing the properties of complex business systems, using an abstract description in the form of graphical components, mathematical equations, diagrams, plans, algorithms and programs is business modeling.

To determine the essence of the concept of a business model, two approaches are identified.

The approach directed inside the enterprise implies considering the activities of the enterprise from the point of view of business processes and technologies. The second approach involves focusing on the values of customers for whom the company should create a favorable environment, and this approach is also aimed at the results of the activities of this enterprise.

To date, there is no single point of view and a single definition of «business model».

To determine the content of an enterprise’s business model, several key factors are identified (Figure 1.3).

The concept of a business model is quite new. Schematically, Alexander Osterwalder was able to reflect it in 2004 in the form of a drawing according to which the company operates. In his opinion, the work of absolutely any company can be described in nine blocks. These blocks describe the scheme of the company’s work, its resources and main processes (Figures 1.4) [2].

As can be seen from the structure of the company’s work scheme, all the details of the company’s activities were covered by two approaches – inside the company and directly with external customers.