DREIESKIVA​|Roald Kvam

Every successful organization stands on a clear and well-designed business model — the architecture that connects purpose, value, and profit. A business model is not just a financial mechanism; it is a living framework that defines how a company creates, delivers, and captures value. It links strategy to execution, and vision to sustainable growth.

While strategy asks “Where do we play and how do we win?”, the business model answers “How do we make it work — repeatedly?”

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What a Business Model really is

A business model describes the logic of an organization. It clarifies how the company uses its resources, partnerships, and capabilities to solve problems for customers — in a way that’s both meaningful and profitable.

Alexander Osterwalder and Yves Pigneur’s Business Model Canvas remains the most recognized framework, built around nine essential components:

1. Customer segments – Who are we creating value for?
2. Value proposition – What problem are we solving or desire fulfilling?
3. Channels – How do we reach and deliver value to customers?
4. Customer relationships – How do we build and maintain engagement?
5. Revenue streams – How do we earn money from each segment?
6. Key resources – What assets enable us to deliver?
7. Key activities – What must we do exceptionally well?
8. Key partnerships – Who helps us succeed?
9. Cost structure – What are the major cost drivers?

These nine building blocks form an integrated picture of the enterprise. Change one, and the others must adapt.

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The DNA of a Business Model: Purpose + Profit

At the heart of every business model lies purpose. A model built only for efficiency or margin may generate short-term gains but rarely endures. Purpose ensures coherence — it reminds the organization why it exists and for whom.

The most resilient models, therefore, combine:

• Purpose – the mission or “why” behind the work.
• Process – the “how” that enables repeatable value creation.
• Profit – the “what” that sustains growth and reinvestment.

Think of Patagonia, which aligns its entire model around environmental responsibility. The company earns profit because of its values, not in spite of them. Or consider Spotify, whose freemium model transformed listening habits by combining accessibility (purpose) with scalable technology (process) and predictable revenue (profit).

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Business Model innovation – When the logic changes

Many organizations focus on product innovation — but the real breakthroughs often come from business model innovation.

Netflix didn’t invent video content. It reimagined the access model — from DVDs by mail to streaming subscription.
Airbnb didn’t build hotels; it unlocked idle assets through peer-to-peer trust.
Tesla didn’t start as a car manufacturer; it combined software, brand, and direct sales into a vertically integrated energy ecosystem.

Business model innovation means redefining how value is created and captured. It is a more strategic form of creativity — a shift in system logic rather than incremental improvement.

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Evaluating a Business Model

A good model must be:

• Desirable (customers want it),
• Feasible (we can deliver it),
• Viable (it’s financially sustainable),
• and Adaptable (it evolves with context).

Executives and entrepreneurs should continuously test these four questions:

1. Does this model still solve a real, urgent problem?
2. Can we deliver the value better or faster than alternatives?
3. Are margins and cash flows aligned with long-term viability?
4. How easily can we adapt when technology, regulation, or behavior shifts?

Testing and iteration turn the business model from theory into practice. The best companies treat their business model as a prototype, not a monument.

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The human side of Business Models

Behind every diagram or canvas lies one central truth: people make the model work.

• Employees must understand how their actions contribute to the overall logic.
• Partners must see mutual benefit.
• Customers must feel recognized and served.

A well-designed model aligns incentives, culture, and daily behavior with the larger mission. It answers: “What does success look like — and for whom?”

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Digital transformation and Business Model reinvention

Digitalization has blurred traditional boundaries between industries. Platforms, ecosystems, and data-driven services have replaced linear value chains. Today’s business model must be networked and adaptive.

Key shifts include:

• From ownership → to access (subscription, sharing, leasing).
• From products → to experiences (bundled services, personalization).
• From competition → to collaboration (ecosystem partnerships).
• From transactions → to relationships (lifetime value, community).

The companies that thrive are those that see business models as evolving systems — capable of learning and scaling.

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Building resilience into the model

Resilience means the ability to absorb shocks — economic, technological, or social — and still function.
Resilient business models share three traits:

1. Diversity of revenue – multiple income streams reduce dependency.
2. Flexibility of structure – partnerships and modular operations allow adaptation.
3. Purpose-driven culture – employees and customers remain loyal even in turbulence.

The COVID-19 pandemic proved how fragile rigid models can be — and how adaptable ones can not only survive but grow.

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From model to movement

When a business model is strong, it transcends spreadsheets. It becomes a movement — where customers and employees participate in a shared story. This is the ultimate form of competitive advantage: when the logic of your business aligns so deeply with your values and those of your customers that imitation becomes irrelevant.

Apple, IKEA, and Lego demonstrate this principle beautifully. Their models are clear, coherent, and infused with meaning.

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The leader’s task

For leaders, designing and refining the business model is not a one-time project. It is a continuous act of stewardship. It requires curiosity, courage, and humility — the ability to question old assumptions and to integrate insights from finance, operations, marketing, and human behavior.

Leaders must balance exploration and execution:

• Exploration keeps the model alive and responsive.
• Execution ensures operational excellence and profitability.

The tension between the two is not a problem — it is the heartbeat of sustainable innovation.

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The Business Model as a living blueprint

Your business model is your story, told through the logic of value. It explains not just how you make money, but why your organization deserves to exist.

To design, test, and refine that model is to engage in the art of stewardship — where every choice, process, and partnership serves the greater purpose of creating value for people and planet.

In a changing world, the best business models are not the most efficient or even the most profitable — they are the most alive.