Business Modeling Process

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Business modeling is the process of translating a business model into financial results, or other required outputs, using input variables together with logical arguments for how outputs are derived from inputs.

Business modeling forces the business model designer or analyzer to identify key variables, make and verify important assumptions, test for different scenarios and by that understand the complexities of the business model and how different attributes and factors relate to each other. In some cases the business modeling process may not produce an answer to a specific business question, but may be constructed simply to enhance the understanding of the business model and its environment.

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