The present invention provides a computationally efficient system for developing configurable, extensible business application product lines using model-driven techniques. The invention enables to create a common business application with a set of pre-defined variants, selection of a suitable variant from the pre-defined set, and composition of the common application with the selected variant into a purpose-specific business application and also provides for modeling of commonality and variability thus leading to a single specification. The invention provides model-based solution to address extensibility and configurability of both structural and behavioral aspects in a functionality dimension of database intensive business application and it supports configuration process at three different stages of application development (i.e. design time, installation time and run time) of database intensive business application. The invention reduces the cost as well as computational time for creating new business applications, and leads to effective maintenance and smooth evolution.