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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:
get the Blue Canvas
and 300+ other templates
“That was the missing Canvas arrangement / alignment that I've needed for years. Thanks Flavio!”
Bill Roth, CEO at InvestorGraphics.com
Thanks Flavio. It gave me headaches too in my MBA Innovation & Entrepreneurship module. Thanks for sorting it out
Noorul Islam Farhan Ahmed - CRM and Enterprise Applications Project Lead at STC Specialized
“Thank you Flavio. Interesting and practical! Innovative thinking in perspective!”
Donna-Luisa Eversley - Business Development Consultant
“Thank you for sharing your brilliant insight.”
Simone Fontana - Founder & Treasurer at ESCP Europe
Private Equity and Venture Capital Club
“This is a useful modification to the BMC!”
Sunil Malhotra - Founder - Ideafarms
...and the innovation team of BigJump
who has adopted it on the other side of the world.
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!
and hundreds of other tools
*) 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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