If you want to make positive, future-oriented change in your organization you’ll need to go beyond writing long-winded paper visions and come to a shared agreement about what you are going to fight for together, and what steps you are going to take to get “there.”
David Sibbet
What’s it all about?
Based on the Business Model Canvas this tool takes you onto the next stage after you have done an initial assessment of the building blocks of your business model. It encourages you to be expansive in your ideas and honest about the assumptions that underlie your business model. This process encourages you to expand your thinking and to then develop criteria to help you make choices about your priorities.
What’s it for?
The purpose of the model is to create a shared language for describing, visualising, assessing and changing business models. It is intended to be a practical guide, which will give you a deep insight into your future business model and generate shared understanding of the value your business creates. The building blocks proposed by the Business Model Generation approach are:
- Customer segments: a breakdown of the customers being served
- Channels: how the value propositions or offers are delivered
- Customer relationships: how relationships are established and maintained
- Key resources: the assets needed to develop and offer the value proposition
- Key activities: performing what is needed to deliver
- Key partnerships: activities and resources that are acquired outside the enterprise
- Value proposition or offer: which seek to solve customer problems and satisfy customer needs or wants
- Revenue streams: where the money comes from as a result of successfully delivered value propositions or offers
- Cost structure: the cost structure that results from the other business model elements
The main element of the tool is the business model canvas, which encourages you to look at your business as a whole. A detailed tool for just the canvas is also included seperately under the strategy toolkit. You can print off the canvas attached, download a copy or create a large canvas with flip chart paper. The tool takes you through an ideation process, which involves several steps and key questions that really focus you on your future business vision.