Despite the growing importance of developing a novel business model, most previous studies on business model remain conceptual and theoretical. A paucity of empirical studies has hindered the use of the business model concept in practical purposes. Hence, this study proposes a systematic approach to new business model development (NBMD) that helps business practitioners to develop, evaluate and select the best business model to meet the business objectives. The proposed approach comprises two stages: identification of business model alternatives and business model evaluation and selection. During the firs  stage, a set of business model alternatives are derived by exploring all the possible combinations of a morphological matrix, and in the second stage, we conduct an evaluation and selection of a suitable business model. Morphological analysis (MA) has been employed for the derivation and aggregation of business model alternatives, and decision-making approach that integrates fuzzy extent analytic hierarchy process (FAHP) and fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) method is used as an evaluation and selection tool. Finally, to illustrate the applicability of propose  approach, a case study on the development of a business model for a Telco has been presented.