The document discusses conceptual or domain models, which represent concepts in a problem domain using UML class diagrams. A conceptual model illustrates meaningful classes and associations between classes in the problem domain, without including software artifacts or responsibilities. It focuses on identifying domain concepts, drawing them as classes, and adding associations and attributes. The document provides guidelines for creating conceptual models, such as finding conceptual classes from requirements, identifying associations between classes, and choosing appropriate attributes. It also discusses using system sequence diagrams to illustrate the system events generated by external actors in response to use case scenarios.