The term e-business model became popular in the early second millennium. If the e-business model is carefully defined, it can help businesses implement their e-business strategies. In addition, it allows them to identify, evaluate, modify and even simulate their business. The most important advantages of the e-business model are the following:
-The process of modeling social systems, such as an e-business model, helps to identify relevant factors in a given area and to understand the relationships between them.
-Using formulated e-business models helps managers to easily share their understanding of e-business with other stakeholders.
-Drawing and using e-business models serves as a basis for facilitating change issues. Business model designers can easily modify the components of an e-business model.
-A formulated e-business model can help set benchmarks for evaluation, such as the “balanced evaluation” approach.
-E-business models help managers simulate e-business and thus increase what they learn from it. This is a way to take risks without compromising the organization.
-The business model is not just a complex social system with all its actors, relationships, and processes. Rather, it is a description of the logic of a business system for creating a certain value. Therefore, the business model derives from the organization’s strategy and is used as a model for designing business processes.