conceptualization of something – in this case, of 
how a company does business.  
We extend this common and simplistic 
interpretation of a business model as “the way a 
company earns money”, into a broader and more 
general definition of the concept: “a simplified 
representation that accounts for the known and 
inferred properties of the business or industry as a 
whole, which may be used to study its characteristics 
further, for example, to support calculations, 
predictions, and business transformation.” 
The last part of the definition above, namely the 
indication of the possible uses of a business model is 
of particular importance in the context of this paper. 
The method we propose not only facilitates the 
development of such a design artefact - a business 
model - but also takes a business engineering 
perspective. Thus, its application will result in two 
(or more) business models: one that reflects the “as-
is” situation of the business and one or more 
alternative “to-be” business models that represents 
possible modifications of the business as result of, 
for example, adoption of innovative technologies or 
more efficient business processes.  
To the best of our knowledge, such a method 
does not exist yet for what we define as business 
models (Vermolen 2010). In the remainder of this 
section, we position our work in the contexts of 
design science and method engineering, to which it 
is related. 
2.1  Design Science 
A business modelling method can be seen as a 
design-science artefact. It is the process of creating a 
product: the business model. We use the seven 
guidelines of Hevner et al. (2004) to frame how we 
use the methodology engineering approach from 
Kumar & Welke (1992) to create our method. 
The first guideline advises to design as an 
artefact. Design-science research must produce a 
viable artefact in the form of a construct, a model, a 
method, or an instantiation. As said, we produce a 
method. 
The second guideline tackles relevance. The 
objective of design-science research is to develop 
technology-based solutions to important and relevant 
business problems. Viable business models lie at the 
heart of business problems. However, our solution is 
not yet technology-based. Partial automation of the 
method is left for future research. 
The utility, quality, and efficacy of a design 
artefact must be rigorously demonstrated via well-
executed evaluation methods. We demonstrate the 
business modelling method using a case study. We 
leave more rigorous evaluation for further research. 
Research contribution is the topic of the fourth 
guideline. Effective design-science research must 
provide clear and verifiable contributions in the 
areas of the design artefact, design foundations, 
and/or design methodologies. We provide a new 
artefact to use and study for the academic world. 
The methodology may be extended, improved, and 
specialized. 
Guideline five expresses the scientific rigour: 
Design-science research relies upon the application 
of rigorous methods in both the construction and 
evaluation of the design artefact. We aim to be 
rigorous through using the methodology engineering 
approach. Existing, proven methods are used as 
foundation and methods where applicable. 
Evaluation was handled in the third guideline. 
The sixth guideline positions design as a search 
process. The search for an effective artefact requires 
utilizing available means to reach desired ends while 
satisfying laws in the problem environment. 
Whenever possible, we use available methods for 
each of the steps. Following the methodology 
engineering approach helps us to satisfy the laws for 
creating a new methodology. 
The final guideline instructs us to communicate 
our research. Design-science research must be 
presented effectively both to technology-oriented as 
well as management-oriented audiences. This article 
is one of the outlets where we present our research. 
2.2  Methodology Engineering 
Methodologies serve as a guarantor to achieve a 
specific outcome. In our case, this outcome is a 
consistent and better-informed business model. We 
aim to understand (and improve) how business 
models are created. With this understanding, one can 
explain the way business models help solve 
problems. We provide a baseline methodology only, 
with a limited amount of concepts. Later, we can 
extend, improve and tailor the methodology to 
specific situations or specific business model 
frameworks. 
The business modelling method has both aspects 
from the methodology engineering viewpoint: 
representational and procedural (Kumar & Welke 
1992). The representational aspect explains what 
artefacts a business modeller looks at. The artefacts 
are the input and deliverables of steps in the method. 
The procedural aspect shows how these are created 
and used. This includes the activities in each step, 
tools or techniques, and the sequence of steps. 
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