Business Model Zen Canvas – In 2008, Alexander Osterwalder launched his Model Canvas business. It’s a simple, visual tool that accurately describes a business model of any business on a single sheet of paper. Over the years, I have used this tool myself, and have given copies of his book to colleagues.
Warning: this post is mainly aimed at people who are already familiar with this model; I will not explain the model any further
Business Model Zen Canvas
A canvas is a simple list, albeit with a rich cookie level of granularity, that describes what an organization does, for whom and how they do it. It’s simple, but complete.
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But for all its advantages as a simple description of business models, it is not widely used as an analytical or predictive tool. In my opinion, its greatest weakness is its detachment from context.
Business models, operating in different ways, can have very different results. And if that’s true, all we’re left with is an aesthetically-pleasing statement of a business model, but without the tools to know if it’s really good.
Although I have long “hacked” the model to suit my own needs (in other words, adding many things to it), I have now gone to the extension of the actual canvas, while trying to appreciate the zen-like simplicity. basic model.
Financial Basis: While you can use the Revenue and Sales boxes in the basic BMC to understand a P&L or profit segment, the Balance Sheet and Cash Flow are missing.
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Is there a trading income that can convert income into money? Is there enough cash or debt to market to finance a loss-making market segment (Grab way)? Can the payment ecosystem allow customers to easily pay for your digital assets? Can the banking industry promote international trade? Do interest rates or ForEx have important implications for business behavior?
Regulatory Compliance: What are the most important rules a company must play by in order to operate… is it governance, accounting, environmental, safety, or regulatory? Is the market corrupt enough for business to operate without “greasing the wheels”? Are there data protection regulations or customer requirements related to the model? Do trade unions matter? Are you a crypto business where regulatory changes can cause problems?
Market Dynamics: This is probably the most overlooked factor in the original BMC. What is the competition? A business model that describes a new market entrant, an established player in a competition, or a defensive monopoly? Has the market already understood your value proposition, or are you landing a UFO on their front lawn?
What macro- or micro-economic conditions are important? For example, you have an HR SaaS solution that saves 50% human labor by splitting the payroll. What is the price of that job in each market? Does your business need real estate or web solutions? If so, can you implement them in these market segments? Does the possibility of your new crude oil at a net price per barrel seem reasonable?
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Brand Equity: Is there any value in your brand that adds to (or subtracts from) the business model? Is there a warning sign? Are relationships established? Do people trust you?
Does your brand equity support the cost and margins required for business operations? For example, the whole model may be different if your brand name is Louis Vuitton, rather than Theo Sanders (for those who know my style, this fact will be obvious.)
Let’s say your company is considering a global expansion into a new market. I’ll start by expanding the context classes to represent the new production environment. Then go to the analysis to predict the parts of the business model that need to be reduced in risk according to the impossible numbers.
For example, if market trends dictate that your financial model should be adjusted to the new market in order to compete, your pricing model may need to be adjusted. And how do you achieve that? Yes, by rethinking your value chain for that market. Maybe that premium, 24/7 customer support you’re offering in the US should be reconsidered to become the market leader in Zimbabwe?
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It provides a graphic chart with elemts that describe the value proposition of a firm or product, company, customers, and funds,
Nine “building blocks” of business model planning called the Business Model Canvas first introduced in 2005 by Alexander Osterwalder,
The specific definitions of the company will be the building blocks for its activities. There are many different business ideas; Osterwalder’s 2004 thesis
Design a single model based on the same elements of a wide range of business model concepts. With its business plan model, a terprise can easily define its business model.
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Osterwalder’s canvas has nine boxes: sales segments, value propositions, channels, customer relationships, revue channels, key resources, key functions, key groups, and cost structure.
The Business Model Canvas can be printed on a large surface so groups of people can start drawing and discussing business model elemts with post-it notes or class mark It is a hands-on tool that encourages understanding, discussion, imagination, and observation. It is provided under a Creative Commons license
From Strategyzer AG and can be used without limitation for modeling businesses. It is available as an online program.
The Business Model Canvas is characterized as static because it does not capture changes in the design or evolution of the model.
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Some limitations of the sample are the analysis of companies and the result of separating the idea from its business, if this is related to the business sector.
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