Utilizing the analytical descriptive method, this paper examines the business model as an especially useful concept, considering the fact that organization managers are often unable to explain the complexities of business regulations and elements in an understandable way. A contemporary approach views the business model as a tool that assists the understanding, visualization and communication of the basic nature of conducting business to parties of interest and influence. The purpose of this article is to clearly describe the spectrum of business model concepts and to give a clear overview of its essential components. What is more, the paper emphasizes the role and importance of inovating the business model as a determinant of a contemporary organization’s sustainable competitive advantage. It is believed that business models are able to change the fundamental nature of business regarding the organization’s value creation and to set new competition standards in a given industry.