Why the Business Model Canvas is Good But Not Great. What do you think?

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Information about Why the Business Model Canvas is Good But Not Great. What do you think?
Business & Mgmt

Published on January 10, 2014

Author: RodKing

Source: slideshare.net



Why  the  Business  Model  Canvas  is  Good  But  Not  Great   STRUCTURE   The  Business  Model  Canvas  is  largely  a   visual  (non-­‐linear)  outline  or  checklist   of  9  topics  –  “building  blocks”  -­‐  of  an   archetypal  business  model  (system).   The  3  sub-­‐models  or  modules  of  a   business  model  are  not  made  explicit:       q  Provider  (Supply)  Model  for   crea&ng  value   q  Customer  (Demand)  Model  or   Growth  Engine  for  delivering  value   q  Performance  (Profit)  Model  or   Value  Engine  for  sharing  value                     THE  BUSINESS  MODEL  CANVAS     Source:   h0p://en.wikipedia.org/wiki/ Business_Model_Canvas       A  Business  Model  Canvas  is  good  as  a   So,  the  Business  Model  Canvas  does  not   Business  Model  Form,  Checklist,  and  Score-­‐ facilitate  modular  (mulOlevel)  analysis   card    for  rapidly  visualizing,  prototyping,   and  design  of  a  given  Business  Model.   and  managing  a  business  model  but  …   LINKAGES  (FUNCTIONAL  ANALYSIS)   It  is  difficult  to  observe  and  understand   cause-­‐and-­‐effect  relaOonships  on  a   Business  Model  Canvas.       In  parOcular,  the  staOc  Business  Model   Canvas  ignores  relaOonships  between   the  blocks  (as  well  as  in  their   environment).  So,  the  Business  Model   Canvas  is  not  a  network  (funcOonal   analysis)  diagram  that  illustrates   exchange  of  resources  between   building  blocks  (as  well  as  in  their   environment).     Also,  techniques  such  as  Premortem   (Failure  Analysis)  and  Hypothesis   GeneraOon  cannot  be  simply  carried   out  using  the  Business  Model  Canvas.   LOGIC  (PREDICTIVE  CAPABILITY)   From  an  academic  perspecOve,  the  Business  Model  Canvas  does  not  adequately  describe  a  business  model,  the  Business   Model  Canvas  does  not  really  describe  the  logic  of  how  an  organizaOon  creates,  delivers,  and  captures  or  shares  value.   Rather,  the  Business  Model  Canvas  presents  a  tessellaOon  of  discrete  elements,  components,  or  parts  of  a  business  model.   The  Business  Model  Canvas  does  not  even  explicitly  consider  a  performance  output  such  as  profit  or  shared  value.   So,  the  Business  Model  Canvas  cannot  easily  be  used  for  outcome-­‐based  planning  such  as  in  Discovery-­‐driven  Planning.   A  fi^ng  saying  might  be:  "The  blocks  are  not  the  building  or  business  model.”  Just  the  blocks  of  a  building  (system)  do  not   enOrely  show  the  logic  of  how  the  structure,  subsystems,  and  relaOonships  come  together  to  make  a  building  (system)   funcOon,  stand,  or  deliver  value.  Finally,  the  Business  Model  Canvas  omits  the  micro-­‐logic  &  macro-­‐logic  of  a  business  model.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

“Good”  vs  “Great”  Business  Model  Canvas   REQUIREMENTS   (TASKS/FUNCTIONS)  FOR   BUSINESS  MODEL  PLANNING,  STRATEGY,   PERFORMANCE  MANAGEMENT,  AND  GAMIFICATION     “Good”   Business  Model  Canvas       1)    Can  be  carried  in  pocket/wallet:  ultra-­‐portability;  modularity   “Great”   Business  Model  Canvas   ü      2)    Visualize  archetypal  parts  or  elements  of  a  business  model   (system):  Business  Model  Outline  (Form/Checklist/TreeMap)   ü      ü      3)    Organize  and  manage  ideas  regarding  the  parts  or  elements  of   a  business  model  (system):  Business  Model  Scorecard   ü      ü      4)    Illustrate  the  3  macro-­‐modules  or  engines  of  a  business  model:   Provider  (Supply)  Model;  Customer  (Demand)  Model;  Value   (Performance/Profit)  Model:  Mul`level  (Aggregate)  Analysis   ü      5)  Comprehensively  show  how  cause-­‐and-­‐effect  relaOonships  that   illustrate  how  a  business  model  works  to  deliver  value:  Business   Model  Strategy  Map;  Func`onal  Analysis  Diagram   ü      6)  Illustrate  Problem-­‐SoluOon  Fit  &  Product-­‐Market  Fit:  Lean   Startup  method;  Engine  of  Growth   ü      7)    Facilitate  generaOon  and  management  of  business  model   hypotheses  as  well  as  strategy:  Business  Model  Strategy   ü      ü      8)    Facilitate  Premortem  (Failure  Analysis):  Root-­‐cause  Analysis   ü      9)    Facilitate  problem  solving,  innovaOon,  and  performance  mngt   as  well  as  Outcome-­‐driven  Planning,  including  Discovery-­‐driven   Planning:  Universal  Project  Management  (UPM)  Dashboard   ü      10)    Can  be  deployed  as  a  boardgame  with  “naOve”  game  pieces   (cards)  &  board:  Business  Model  Jigsaw  (BMJ)  Game   ü      (3/10)   (10/10)  

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