The four Perspectives on a Business Concept

The concept of three realms, which distinguish between elements jointly building a business, is supplemented by four perspectives. The perspectives are required to gain a complete understanding and for analyzing a business concept. It is this combination of realms and perspectives that creates the 3-4 model.

These four perspectives being used to analyze a business are derived from the objectives pursued with the idea of the business concept and by its definition. In the definition of a business concept, four core terms were identified as necessary to fully describe a business in a model. These four terms are:

1. Functionality,
2. Competitiveness,
3. Intrinsic value and
4. Viability.

Each of these core concepts represents a specific perspective on a business concept. Behind each perspective is a fundamental concept that is the focus of that perspective. Linked to this are the core questions typical of each perspective, which must be answered from the perspective's point of view.

1. Functionality requires an understanding of the elements involved in the business concept and how these elements work together to realize the function provided by the business concept. Accordingly, the core question of this perspective initially arises as: What elements must actually be involved to achieve the functionality and what characteristics must they have? What is an “element” and what is not? In this context, “element” is an abstract term for everything that can be meaningfully defined and used as an entity. Elements can be physical objects, money, people, data, algorithms or specific structures/constellations in a network. This universal concept of the “element” is also linked to the question of how the elements interact with each other so that the desired functionality is actually achieved.
2. Competitiveness focuses on the interfaces between the elements involved in the business concept. Only where there is an “interface” can elements actually work together and jointly fulfill the desired task. At the same time, only at an interface can a choice between alternatives and thus “competition” take place at all. Analogously, the following key questions arise: What interfaces exist between the elements involved? Or which could exist? What alternatives exist at these interfaces? What competition? Do the interfaces function smoothly and are they stable? What properties do the interfaces have and what requirements do they have so that they can be used by other elements or interact with them?
3. Intrinsic value inevitably involves the concept of evaluation. An evaluation is the basis for any response to the exchange between elements offered through the interface, and possibly actually taking place. It is also the basis for any conceivable exchange of one element for another. The intrinsic value must be considered for each interface between elements. At each interface, the perspective of both elements involved in the interface must be considered. Each element involved will make its own evaluation of the specific interface. The way the evaluation is performed at the interface and the result of the evaluation may also be different per element. One part of the evaluation can then also be the question of what the remuneration is for the other element at the interface and how this remuneration is fulfilled. However, the remuneration is only one aspect out of many being considered. Finally, the question arises as to what incentives exist for the elements involved at the interface as a result. Only on this basis will the affected elements at the specific interface react.
4. The viability perspective focuses on time and all related issues. The central question with regard to viability is initially whether a business concept can actually be successfully built up over time and whether it will last. Or whether it will collapse again after a possibly short “blooming phase”. In the development phase, the key question is: At what times are which elements and interfaces really available? When will the desired performance really be achieved? Once the initial set-up phase has been successfully completed, the next question immediately arises: How will the business develop over time? How far can it grow? How must it change in order to survive? Will it still be the same business after the change?

It is important to note that the term “product” does not appear here at any point. Nor do “money” or utility appear in this fundamental consideration. This is intentional so as not to limit thinking towards familiar paths from the outset. But more on this later.