A b s t r a c t At first glance, there seems to be a broad understanding regarding business models. However, a more thorough analysis of existing resources paints a different picture. The term ‘business model’ often remains undefined and a consensus on the elements of business models is lacking. An analysis of various sources, such as electronic data- bases, conference proceedings, and EM – Electronic Markets itself supports this statement. Nevertheless, business models are largely believed to determine the success of an electronic venture. To establish some structure and to identify the critical components of business models, the existing definitions and approaches were analysed and led to a model, which differentiates six business model elements. This model is also used to position the articles submitted to this special issue of EM – Electronic Markets. A u t h o r s Rainer Alt (Rainer.Alt@unisg.ch) is a Senior Lecturer and Project Manager at the Institute of Information Management, University of St. Gallen, Switzerland. He served as Executive Editor of this journal with Stefan Zbornik from 1993 to 1996 (Vol. 3 to Vol. 6). Prior to assuming his current position he worked for Roland Berger Strategy Consultants in Düsseldorf, Germany. Hans-Dieter Zimmermann (Hans-Dieter.Zimmermann@unisg.ch) is a Senior Research Associate at the mcm institute for Media and Communications Management at the University of St. Gallen, Switzerland. He is managing the Competence Center Electronic Markets (CCEM), which has funded the editorial staff of EM – Electronic Markets for the last 10 years. INTRODUCTION Business models are perhaps the most discussed and least understood terms and aspects in the areas of eBusiness, eCommerce and eMarkets. Much talk revolves around how traditional business models are being changed and the future of e-based business models. Despite an intuitive under- standing that seems to be widespread, a more thorough analysis reveals a confusing and incomplete picture of the dimensions, perspectives, and core issues of these business models. A reading of scientic, as well as non- scientic publications, presents a broad variety of understandings: auctions as a business model; B2B or B2C as business models; a subscription-based business model; a business model understood as ‘revenue model’; verti- cal portal as a business model; and e-commerce as a business model, etc. Rappa (2000) provides a compre- hensive overview of the different views on business models. He identies 29 different types of business models, ordered in nine categories. We feel that a common-sense under- standing, a denition, or a taxonomy regarding business models are all lacking today. Furthermore, we nd that there is virtually no discussion on this topic. However, the relevance of a sound business model seems to be undisputed. Many failures of ‘eVentures’ are due to their missing, ill- dened or ill business model (Vickers 2000: 58). Although resolving this dialectic situation is elusive at the current stage of discussion and research, we aim to shed some light and structure to this eld. First, we present some evidence with a simple analysis of the diffusion of the term business model. In the second step, we present a variety of business model denitions and show the dimensions involved in the dis- cussions about business models. These denitions will be used to suggest a working denition for business models, which also serves to position the articles in this issue. BUSINESS MODELS IN LITERATURE The term business model is widely used in both academia and practice. Importance is usually regarded as high, since a sound business model seems to inuence the (potential) revenues and the future success of the eBusiness initiative. Business models determine participation of partners, channel con- icts, and revenues etc. However, there are multiple indications that neither the understanding nor the elements of business models are broadly avail- able. In 1995, Shipley remarked that ‘many enterprises do not have clearly articulated or presented business models and goals; nor are they static’. Viscio and Pasternack claimed in 1996 Preface: Introduction to Special Section – Business Models RAINER ALT AND HANS-DIETER ZIMMERMANN Copyright © 2001 Electronic Markets Volume 11 (1): 3–9. www.electronicmarkets.org Keywords: business media, business models SPECIAL SECTION: BUSINESS MODELS