Last updated on April 29th, 2022 at 09:17 am
Many firms around the world look to diversify / enhance their product offerings and would like to leverage the experience of its senior management team to come out with new ideas. That is something ideally one would learn in a business analyst course.
What the firm ideally requires is a unified business model generation that combines the experience of the entire team through structured, tangible, and strategic conversations around new businesses.
Often, though, we make the mistake of assuming that good ideas just happen. Or worse still, we get caught in the mind trap that creativity is an aptitude; some people have it, others don't. Then there is the other self-defeating belief – "I am not intelligent enough to come up with good ideas."
The solution:
Alexander Osterwalder, co-founder of strategyzer.com, has invented a Business Model Canvas which is a simple template describing nine building blocks that show the logic of how a company intends to make money. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems. The canvas’s main objective is to help companies move beyond product-centric thinking and towards business model thinking.
- Customers - kind of important - who are they? To build an effective business model, a company must identify which customers it tries to serve. Various sets of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients.
- Value Propositions - the thing your customers want - do you really know what your customers want? The collection of products and services a business offers to meet the needs of its customers.
- Channels - you touch your customers via these - how do you attract to your customers? Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective.
- Customer Relationships - You interact with your customers with these - how do you keep your customers?
- Revenue Streams - show me the money! Is it coming from multiple places? The way a company makes income from each customer segment.
- Key Resources - from what do you create to make that thing your customers want? The resources that are necessary to create value for the customer, they are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual.
- Key Activities - The most important activities in executing a company's value proposition.
- Key Partnerships - do you have any of these to make getting clients easier? In order to optimize operations and reduce risks of a business model, business analyst online training normally trains organizations to cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures, strategic alliances between competitors or non-competitors.
- Cost Structure - how much is this all costing? This describes the most important monetary consequences while operating under different business models.
This tool resembles a painter’s canvas—pre-formatted with the nine blocks—which allows you to paint pictures of new or existing business models. The Business Model Canvas works best when printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with sticky notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis.
This canvas has many early adopters across Europe and America. The influence of the canvas continues to grow in these regions. We believe in India with increased interest towards entrepreneurship and innovation this business model canvas would be a useful tool for startups as well as for established firms in their search for the right business model.
Imarticus Learning, an Education Excellence 2015 award winner offers certification courses in finance including financial modeling, risk management courses, financial analyst course and CFA course in India. It offers both classroom and online finance courses to make it extremely easy and flexible for an aspirant to pursue their dream career.
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