The term business model became extremely popular during the dot-com craze—

everyone was searching for that Web-based business model that promised unimaginable profits. However, as the dot-com craze imploded, the concept lost its luster.

But we shouldn't be so quick to dismiss it. A good business model, which is simply a strategic design for how a company intends to profit from its broad array of strategies, processes, and activities, should answer four questions: (1) Who is our customer?

(2) What does the customer value? (3) How do we make money in this business? and

(4) What underlying economic logic explains how we can deliver value to customers at an appropriate cost?