In TOGAF, business models are used as a basis for Enterprise Architects to understand how the organization creates, delivers, and captures value, which helps inform architecture thinking and principles.

The table describes the steps involved in Phase B (Business Architecture), Phase C (Information Systems Architectures), and Phase D (Technology Architecture) of the TOGAF ADM5. These phases are responsible for developing the target architectures for each domain and identifying the gaps between the baseline and target architectures. The table shows the outputs and outcomes of each phase, as well as the essential knowledge required for each phase.

A business model is a description of the rationale for how an organization creates, delivers, and captures value4. Value is defined as the worth or importance of something to someone6. A business model explains what value proposition the organization offers to its customers, what revenue streams it generates from delivering the value proposition, what cost structure it incurs to create and deliver the value proposition, what key resources and activities are needed to create and deliver the value proposition, and what key partnerships are leveraged to support the value creation and delivery process4.

One of the guidance for creating value streams is to start with customer-based value streams.
Customer-based value streams are those that describe how an enterprise creates and delivers value for its external customers. Starting with customer-based value streams can help to ensure that the value streams are aligned with the customer needs and expectations, as well as the enterprise's value proposition and strategic objectives. Customer-based value streams can also provide a foundation for identifying and defining other types of value streams, such as internal or partner-based value streams.