Home > BCS, business model, Capgemini, Entrepreneurship, Innovation, Leadership, Strategy > The Innovative Art of Business Model Generation

The Innovative Art of Business Model Generation

Simplify and facilitate. In my opinion, this should be a key principle for any modern business operating in the Internet age. It really baffles me to see many so called business models that appear to be doing just the opposite. Well, the remedy is close to hand, in form of a novel approach to business modelling using something called a Business Model Canvas.  

Business Model Canvas

The Business Model Canvas (businessmodelgeneration.com)

The business model canvas, as shown in the above template, is a tool that allows you to create high-impact, visual models of your business, (or any other business for that matter), on a single sheet of paper (or any other suitable surface or medium – ranging from the storied paper napkin to an iPad). At the heart of any business is the ultimate, bottom line, question of profitability (i.e. how much it costs versus how much it makes), but it is often not that easy to understand the other key aspects that make a business work; at least not in such a straightforward manner as the single sheet canvas allows .

The great thing about the Business Model Canvas is the comprehensive way in which it can describe a business, by breaking it down into nine key components (including cost and revenues) as follows:

  • Key Partners
  • Key Activities
  • Key Resources
  • Value Proposition
  • Customer Relationship
  • Customer Channels
  • Customer Segments
  • Cost
  • Revenue

Furthermore, this is not a stand-alone tool. Even though it may be simple enough for anyone with a little common sense to use the canvas to describe innovative business models, the canvas is part of what I can only describe as a multi-publishing project which includes: the website, the book (click here to see my review of same), an iPad App, and a thriving community of experts and users, many of whom had direct input to the content in those products and channels.

I’m not normally one to be effusive in praise of anything, but in this case, the proof is overwhelming that the clarity and immediacy this canvas brings to describing any business can only be matched by the screaming urgency of need for such a tool. Anything that helps to accelerate the creation, articulation and / or understanding of any modern day business model can only be a good thing in my book.

So who should use this tool?

In my opinion, the Business Model Canvas should be a mandatory tool for business leaders (i.e. CxOs), entrepreneurs, financiers (e.g. business angels / venture capital / private equity), strategists and consultants, as well as any business school curricula. You could say that I am sold on this concept, not only because I have read and reviewed the book, (and even used the App to create and analyse new and existing business models), but also because I feel the need to discuss it here. But don’t take my word for it – try it out for yourself – what’s more, it’s also free to use, share and remix the canvas under a Creative Commons License! What more could anyone ask?

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  1. June 1, 2012 at 3:26 pm

    Can I just say what a aid to seek out somebody who truly knows what theyre talking about on the internet. You definitely know methods to bring an issue to light and make it important. Extra folks must learn this and perceive this side of the story. I cant believe youre no more popular because you definitely have the gift.

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