Business System (General View)
The Tactical level of a BM describes the Business System of an organization.
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Business System and Processes & Transactions
The Business System is seen through the prism of Processes and Transactions, for "Operating", "Sourcing" and "Targeting". The detailed view of the Business System provides this specific perspective.
The "AVCS" paradigm
The Business System is analyzed through a specific paradigm: the "AVCS" paradigm (Actor-Value-Channel-Scheme): Through processes or transactions, "Actors" process and exchange "Values" through activated "Channels" and following specific "Schemes".
- Actors: Economic entities that play a role in the Business System by processing and exchanging values
- Values: Economic worth for actors of the Business System, in the form of money, assets, goods or services
- Channels: Routes through which values are exchanged or processed by actors, when activated
- Schemes: Patterns following which values are exchanged or processed through channels
"AVCS" paradigm and the 4 Fields of BM
The AVCS paradigm provides the necessary elements for BM analysis at a tactical level. Those elements correspond to the first 3 Fields of BM:
- The STRUCTURE: Actors & Values (Positional Field)
- The MECHANISM: Channels (Functional Field)
- The DYNAMICS: Schemes (Behavioral Field)
AVCS & Transactions
During a transaction, actors exchanges values through channels and following schemes:
Example: A magazine publisher (actor 1) sends its magazines in exchange of money (values) through a logistic partner and through its bank (channels) to its subscribed customers (actor 2) every week and get a monthly payment that is renewed every year (schemes)
AVCS & Processes
Input values are processed following a first scheme through channels (activities), resulting in output values following a second scheme.
Example: A ship manufacturer uses all the necessary parts, raw materials, machines and energy (values 1) all along the manufacturing process (schemes 1) and, through the manufacturing activities (channels), produces a ship (values 2) every year (schemes 2).
