Final answer:
The part of a business model that describes the problem the organization solves for the customer is called problem definition.
Step-by-step explanation:
The part of a business model in which an organization describes which problem it solves for the customer is called the problem definition.
In the problem definition step of a business model, the needs of potential customers are investigated, potential competitors are identified, and constraints on the design effort are established. This process results in a clear understanding of the scope of the design project and the resources available to solve the problem.