Design your Business

More valuable than talking about a specific business is talking about the business model. As with the double-loop of learning, this change of perspective allows to modify the effectiveness (doing the right things) as well as the efficiency (doing the things right) of businesses. Alex Osterwalder has generated today’s language for business model talks, since he offers the Business Model Canvas as a visualisation for various business models (jointly with his PhD mentor Yves Pigneur). The model contains 9 segments, which are best explained in a two minutes video. Osterwalder helps to split the model into a front stage that is visible for customers (customer segments, relationships, channels, the value proposition and revenue streams) and a back stage with all the less visible pieces (key activities, resources, partners and the cost structure).

(click to download)

Focus on Customer

To underline the importance of the front stage, Osterwalder’s company strategyzer has launched a Value Proposition Canvas, which tries to link a customer with a value proposition. Have a look at this four minutes explanation video. It makes entrepreneurs think more about the gain creators and the pain relievers of their customers and by this digs deeper into the motives of the market.

Test Your Hypotheses

Osterwalder does not only introduce the Business Model Canvas to talk about business models. He also uses design thinking when reminding us to check the hypotheses which are underlying our business model, and then to design tests that check the hypotheses with real (potential) clients. In fact, he expanded on ideas of Steve Blank and Eric Ries and put it into another visualisation, together with a test card and a learning card:

Apply the Tools

If you got interested in the language of business models, then have a look at this neat series of two-minute video animations which has been provided by strategyzer and the Kauffman Foundation, enjoy watching.

If you want to exchange your experiences with the canvas, please get in touch with me. In case you want to challenge your business model, we are just a call away from you.

NB. There are more canvases for other purposes, notably the more tactical and digital  Lean Canvas by Ash Maurya or the more sustainable Excellence Model by EFQM.