What is a To-Be Business Model?

A business process model which is developed by applying improvement opportunities to the present business model (the AS-IS Model). The To-Be business process model defines a concept of what the exisiting processes should be i.e. it can identify if the current business process are effective or need improvement. Consequently, a Business Process Reengineering (BPR) exercise may be required.

In effect there are two types of Business Process Models the “As-Is model” (the present state) and the “To-Be” model (the present state with improvements).

Example of a As-Is model to a To-Be Business Model

E.g. Dell tweaked its direct sales model as the PC business was maturing and a direct sales model alone would not work. Dell had to consider selling through retail channels. Dell then started offering its Dimension PCs and Inspiron notebooks via retailers like Wal-Mart and Sam’s Club.