Flavio Tosi MSc Aer. Eng., MBA
If like me you remain disoriented by the Business Model Canvas,
I propose these few tweaks to the Osterwalder's original:
Now you have 3 horizontal layers that show you:
It's a small change, but people say it helps a lot:
stop your headache
The Business Model Canvas today is the base of any Start-up and most of business initiatives. Alexander Osterwalder has crafted it in 2008 providing all of us with a great tool to describe a business idea in a simple and effective way.
Its 9 blocks are really a guide in analyzing:
You can find a lot of books explaining the 9 blocks and how to use them, however, every time I see wanna-be Entrepreneurs trying to apply it...
I see minds wandering in space.
So I want to try to help with a couple of recommendations and a slight modification to the "holy Canvas" of Entrepreneurship that comes from few years of experience as Marketer and as Business Process re-Engineer.
So far for the easy part. Now let's talk about the slight modification I want to propose.(Osterwalder, please, I beg your pardon...).As someone of you knows, I have done this "doubleface" career path that make me think Marketing as a Process guy and Business Processes as a Marketing guy. The result is that every time I approached the Business Model Canvas my schizophrenia was pumped to stars, causing me a lot of headaches.
My "Marketing-me" loved the Canvas at first sight.
My "Process-me" was unable to stare at it.
My "Process-me" was striving to find symmetry and direction in it but everything conjured against both of them.
I told you above that the problem was the starting point. As a seasoned project manager, I am used to think "R2L" - Right to Left: i.e. from "Customer" to "Resources".
Moving the "1" to the "Customer" block helped a lot to build again a R2L rhythm into the Canvas.
But much more helped moving the "Key Resources" block to the extreme left, in place of the "Key Partners" block.
Now you can read the canvas Left to Right almost like a classic Porter's "Value Chain": where "resources" are the foundation of your business process.
"Symmetry" was reeeealy a nightmare... till I noticed that the blocks were perfect, but in the "wrong" place. "Wrong" I mean, (with all due respect to Osterwalder) compared the two key organizational models used in any business organization already running on Earth:
If you draw a red line from R2L across the upper part of the canvas you will notice that the remaining blocks are kind of "reversed".
Try reading the blocks in this way:
Now you see what I saw:
The Business Model Canvas describes key organizational models too.
But displaced in an asymmetric order. This was causing my "Process-me" get mad: I could not follow the R2L reading.
So I decided to invert the "Customer Relationships" with the "Channel" Block.
Now I have a Canvas that I can read from "Customer" to "Resources" without wandering up and down at middle way.
Above I have all the "Taylor" blocks: and i can see how the value chain processes co-ordinate to use the resources to deliver the value proposition to Customer.
Below I have all the "Mayo" blocks and they point me to all the "human factors" on which I have to count, to make those processes work.
The Blue Canvas, re-aligns the blocks so you can see your organization processes and relationships flowing smoothly from Resources to Customers, and build a better model of your business.
Now you can talk of the Green side ( right - commercial ) and the Red side ( left - costs )
you can also talk about a Yellow result: the Value Proposition.
Top, left to right, you have all company's processes
Middle, left to right, you have your untangible supports
Bottom you have your "P&L": Profit and Loss
(Note that when I talk about Partners I think to them as "accelerators", who bring smarter ideas to support the value creation)
It's really presumptuous to name these little changes Business Model Canvas 2.0, but I really hope that you will like this re-shuffling of blocks and that it will help you "digest" faster the "business model canvas" methodology, and sprint up your next Investors Presentation.
Good luck with your Business Idea!
(to start a better business exploration)
*) Steve Blank has invented "Lean Startup"
**) Taylor has started the "scientific management" approach to organizations at Ford Motor Company. Mayo has started the "human relationship" approach to organizations at Western Electric.
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If you wonder what is the next step after assembling your business model canvas, I would recommend to take my Go-To-Market CHECKUP
You can assess if you have aligned all the elements of the right side of the Business Model Canvas ( the one that describes your commercial operations ) with this on line tool:
for any important missing piece
Clients are risk adverse and think to be rational.
The reality is they aren't rational and to move from status quo they need a new perspective:
I have stolen from great scholars a few key ideas about how to make this happen;
from Christensen to Moore, from Thaler to Cialdini and many B2B sales Champions:
as Bob Bly, Bob Apollo, Mike Adams, Andy Raskin, Adele Revella, Jill Conrat, Steve Blank and Chriss Voss...
just to name a few.
Then I re-packaged these ideas into a set of hands-on tools, templates, checklists
that anyone can follow to build a go-to-market that sells.
Financial, Environmental and Healthcare crisis have jeopardize existing value-chains:
You can use old "try&error" and take your time (and money) to digest and test
all these fundamental ideas or you can join the industrial SMB Owners and high-tech Startuppers
that since 2009 use my coaching program: the Roadmap to Market.
You will save time, money and resources
and kick-start your business in the right direction.
AIRsana - sanitization services
ErreQuadro - cognitive engines
Capcost - expenses management
MedicStudio - cloud EMR
Industrie Leonardo - machinery service
I formaggi del Dottore - food & wellness
Italy got's Style - ecommerce
and others in the Aerospace & Defence, Energy, Oil&Gas, Medical Devices
for which I am not authorized to disclose my strategic contribution.