Jun 10, 2012

Business Model Generation

First of all, a big sorry for the slumber..Trying to get back into some of the GOOD habits of the past !!

I recently came across the book , Business Model Generation, ( Wiley, Alexander Osterwalder and Yves Pigneur). The book provides a different perspective of  'what' an organization can potentially change.

The 100 Billion USD valuation on a 3.7 Billion USD revenue  of Facebook is a clear demonstration of what business model innovation can achieve.

After defining a business model as the rationale of how an organization creates,delivers and captures value the book describes the components of a business model
    The Business model canvas (http://www.businessmodelgeneration.com/canvas) provides a handy tool for describing an organization's business model
  • Customer relationships
  • Customer segments
  • Value propositions
  • Channels
  • Revenue streams
  • Cost structure
  • Key resources
  • Key partners
  • Key activities

Using these components the book identifies various patterns of business model innovation. The models that the authors have identified include
  • Unbundling business models
  • The long tail
  • Multisided platforms
  • Free as a business model and
  • Open business models
Some variants and examples of each of these are also described. The book also provides a set of tools that can be used to design a business model.These include customer insights,ideation,visual thinking, prototyping,Story telling and Scenarios.

Change agents looking for 'what to change' will find the concept of business model and how it generates value and how the interplay of factors affect an  enterprise valuable.. as they identify what to chaneg

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