Why did the Facebook IPO fail – does Facebook have a business model?

I thought that the IPO of Facebook would go through the roof – so why didn´t that happen? Is it because I didn´t invest my money – probably not. That led me to think, what is the actual business model of Facebook? Does it exist? And what is a business model? Is a business model important when working with Business Process Management – what do you think?

The Cambridge Learner’s Dictionary (Cambridge 2003) defines business model:

Business: the activity of buying and selling goods and services, or a particular company that does this, or work you do to earn money.

a representation of something, either as a physical object which is usually smaller than the real object, or as a simple description of the object which might be used in calculations.

I my opinion the business model and the top management usage of innovation is what differentiate the winners from the losers. Remember the music industry, did they innovate their business model? I think NOT. What about the American car industry, did they innovate? NO… Later they were forced to innovate by Obama – but that is a different story.

But how can I make the business model of my own company – and innovate? Is it difficult – is it only for the expert and external consultants? NO……

Some of you have heard of Alexander Osterwalder – he is an expert inside the business model area – Alexander has been so kind to share his work with us. I can strongly recommend his homepage – his videos are the best – but the most important for you is his canvas – use it to innovate your business!

Does it work for you – or is Business Process Management for you – just “painting the processes” without innovation? I my world Business Process Management and business modeling/innovation is extremely important – without this I will end up without a job because of the lack of innovation.

Am I wrong? And I still haven´t figured out if Facebook has a Business Model!


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By Anders Bang Christoffersen @ Process Wizard | June 18, 2012

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