A business model describes the rational of how value is created, delivered and captured. A business model dictates the long term and short term strategies for competitive advantage which in turn get translated to Operating model (Business Process, Technology, People, Ownership and Metrics) for execution. One- Sided Business models are referred as the models with a single direction for the monetary flow, and a single direction for product and service refinement. Involved actors form a value chain and activities early in the value chain are called "upstream" (suppliers & partners), whereas "downstream"(customers) refers to later parts of the same value chain. The monetary flow in One-Sided Business Models flows from downstream actors to upstream actors, while digital and physical products and services are refined in the opposite direction. Value propositions are formed towards downstream actors and revenues can come from the closest actor in the chain and/or from actors further downstream.
One-Sided Business Models Two-Sided Business Models When the refinement of products and services, or the monetary flow has two directions, it is referred as Two-Sided Business Models. The concept of a value chain and terms such as upstream and downstream is not as clear as in One-Sided Business Models. Development can be made by what is in One-Sided Business Models referred to as downstream actors and monetary flow can come from actors referred to as upstream.
Two – Sided Business Models are also mentioned as “Multi-sided Platforms”. One of the best examples for “Multi-sided Platform” is gaming platforms. The platform’s value for a particular user group depends substantially on the number of users on the platform’s “other sides”. A video game console will only attract buyers if enough games are available for the platform. On the other hand, game developers will