Business model: the term has proliferated in recent years. Yet, the concept remains vague and underspecified. This book provides a clear and productive conceptualization, based on a comprehensive literature review, economic theory, and practical case studies. The business model describes the governance of value creation processes. It consists of two elements: The value proposition motivates all stakeholders to collaborate. The value network spells out who participates in the process, as well as the rules that help to overcome conflicts and align stakeholder interests behind the value proposition. Thanks to these institutions, diverse actors manage to collaborate for mutual benefit. This simple concept, translated into a set of practical tools, provides managers with a powerful heuristics to identify and realize opportunities for value creation.