During the last approximately thirty years the concept of business models has seen a steep rise in its importance, especially since the year 2000. The attention is not only in academic research, but in practice as well. Because the phenomenon is comparably young, there is a lot of variation between what scholars have been adding to the literature. With seemingly small convergences regarding the definition, design, approaches and processes for business models and also the innovation of those, confusion is promoted instead of establishing clarity. In order to help create clarity this thesis, based on a literature review, gives an comprehensive overview on those previously mentioned topics.