Business Model Ontology (BMO): An Examination, Analysis, and Evaluation

Abstract

Defining business model constitutes a major challenge. This is primarily because there are many different aspects to a business, hence when we talk of business models, it means different things to different people. Difference lies in the very concept of what constitutes a business (key aspects) and how such a concept can be represented using a common notation. One solution to the problem is to use ontology to communicate. Ontologies are agreed upon frameworks for representing concepts in any domain area. Hence, ontologies are used to represent knowledge, processes, business motivations, business strategies, enterprise structure, and more including business models. The Business Model Ontology (BMO) is one such ontology. Designed and developed by Alexander Osterwalder, it is aimed specifically at representing, understanding, communicating and analyzing business models. This paper is an evaluation of the Business Model Ontology (BMO). The paper consists of two parts. In the first part the researchers describe the four pillars, the nine elements and their sub-elements comprising the ontology. In the second part the ontology is reviewed and evaluated using nine criteria. The fundamental aim is to examine the ontology capabilities – its strength and weaknesses.

An Approach for Developing an Ontology: Learned from Business Model Ontology Design and Development

“…From an ontology design and development perspective, the BMO provides a shared language and structure that aids entrepreneurs in identifying opportunities for business model innovation [24]. It offers a structured framework for representing and understanding the complexity of business models, systematically encapsulating the fundamental aspects of business models, including the relationships between various components such as actors, resources, and the transfer of resources between actors [21], [25]. This aligns with Osterwalder's [23] original aim for the BMO, which was to formalize the key elements of a business model using an ontology, thereby facilitating the development of sophisticated methods for requirement elicitation and computer-based tools for business model design and analysis.…”

“…Moreover, the BMO contributes to enhancing interoperability by providing a common language and framework for describing business models, a feature that is crucial for collaboration and integration between different organizations and systems [25]. Holdford et al,[21] added that this shared framework encourages collaboration and integration between organizations, making it easier to understand and plan business models at a more strategic level.…”

“…In essence, the BMO demonstrates the use of ontology as a common language and framework for describing business models, a feature that is essential for communication, collaboration, and integration between different organizations and systems [25], [26]. Furthermore, the BMO's structured approach enhances modeling capabilities, enabling the representation of both structural and dynamic aspects of business models, leading to a more comprehensive understanding of business phenomena [21], [26].…”

“…Synthesizing BMO and ODMs involves recognizing BMO's simplicity and widespread use globally. Although Osterwalder [23] does not explicitly mention the ODM he employs in developing the BMO, the characteristics embedded in BMO, such as simplicity, logic, and ease of comprehension, align closely with the characteristic of a lightweight ontology, establishing a universal language and framework for articulating and scrutinizing business models [25]. Osterwalder [23] approach, steering clear of too many rules or complexity, is very similar to lightweight ODM [14], [59], [60].…”

“…The BMO's global acceptance underscores that a lightweight ontology can be effective and useful for capturing the essential aspects of a complex domain, without imposing unnecessary complexity or constraints. Chungyalpa et al [25] further posit that BMO also shows that a lightweight ontology can be easy to use and understand, even for non-experts, by using a graphical notation and a clear structure. BMO also exemplifies the adaptability and extensibility inherent in lightweight ontologies, allowing customization and integration with other ontologies or models.…”