This is a basic introduction to composing a business model using the Business Model Canvas. It explains the different types of business models and the Business Model Canvas elements. This was a presentation given by Anthony Draffin to the Canberra chapter of BPMLink.
21. “I’m convinced
that the economic
landscape has
changed and that
companies will
have to find new
ways of analysis in
business
management...”
Alexander
Osterwalder
22. 470
9 years in the
practitioners,
making
contributed as
co-authors
4 000 hours
work
45 different
countries
8 prototypes
PhD from Lausanne
in Switzerland, his
thesis was on
business model
ontologies
23.
24. This work in applying business models is true
thought leadership. It has replaced this poorly
defined yet widely discussed concept with a sharply
defined framework and tools for executives to use
in understanding and improving their businesses. It
is utterly practical, easily understood, and very
valuable – a genuinely useful contribution to
business leaders in every industry.”
Richard Hunter, Gartner Fellow
25. The Business Model Canvas is a
breakthrough product. Its
capture of all the strategic
elements of a business model
design, allows for rapid
exploration of strategic options
and subsequent risk/reward
comparisons.
John Sutherland, Owner, Ennova Inc.
This is how I started my journey into creating business models. It changed from being an academic interest, to a concrete deliverable that I had to achieve.
Often the project manager giving the task had very little knowledge of how they were going to produce a business model. They just knew that it would be a good place to start to drive their work down the track.
I won’t be able to give you a lot of detail in today’s presentation. So I’m going to start by giving a brief overview of the subject from a number of different points of view.
I want to pin out the corners of the subject and then concentrate on one particular aspect that I think is very important – how to go about communicating business models.
So I’m going to start with the basics:
- What
- When
- Why
Then as I mentioned I’m going to concentrate on the how.
In the past, management books have presented a finite number of business models. The advice is to pick one of these models and use that to build your own model.
Today that thinking has changed vastly. No longer is there a finite number of categories. There are an infinite number of business model possibilities.
There are many different business model definitions . Because of this, it has been a difficult subject to pin down and get a consensus amongst practitioners and academics.
When Alexander Osterwalder was doing his PhD on business models, he interviewed one CEO and the CEO said ““I’m happy that somebody is trying to define the term business model. It was one of the most violated terms. Everything was a business model. Everybody asked me
what a business model is. I could never really define it. It is good that somebody is looking at this”
Despite the difficulty of getting to one specific definition. There are some common consensuses as to what business models are about.
So how do they relate?
Business models are the foundations upon which the processs models sit. Process models show how you achieve the outcome depicted in the process models.
In the commercial world – when you’re starting a business
Apple launched the iPod in 2001. It was a direct competitor to existing mp3 players and discmans. iPod soon came to be relied on