Why you decided to choose this resource?
This resource was recommended to me to learn a good approach to framing business models. Every customer that comes to an organization should have a business model especially if they are seeking services to achieve a business goal or create a new project. Often, a project success is affected from how well the business model is crafted. Also, understanding a customer’s business model can greatly improve understanding a project as a whole and in the end understanding your customer.
“Business Model Generation” is a key resource for teaching a new fundamental model for constructing business models. It defines sets of principles to ensure that your model is ready for success and is feasible.
What did you learn from it?
I learned that this resource is mainly for entrepreneurs or people with big ideas. Having a big idea is easy. Making an idea happen is the hard part. This book attempts to grind the harsh realization that a business model must be treated more importantly than the idea itself. In fact, the business model must verify the idea’s creation.
The book was created by over 470 professionals who practice the Business Model Canvas approach to defining a business model. The resource is also used by many companies around the world and is written in 18 different languages.
In the books own words, “Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises. If your organization needs to adapt to harsh new realities, but you don’t yet have a strategy that will get you out in front of your competitors, you need Business Model Generation.”
- A business model describes the rationale of how an organization creates, delivers, and captures value
- A business model canvas: Use a business model canvas to visualize and define your business model. It serves a strategic template for developing business models
- Customer Segments: An organization serves one or several Customer Segments.
- Value Segments Propositions: An organization serves one or several Customer Segments. It seeks to solve customer problems and satisfy customer needs with value propositions.
- Channels Segments Propositions: An organization serves one or several Customer Segments. It seeks to solve customer problems and satisfy customer needs with value propositions. Value propositions are delivered to customers through communication, distribution, and sales Channels.
- Customer Relationships: Value propositions are delivered to customers through communication, distribution, and sales Channels. Customer relationships are established and maintained with each Customer Segment.
- Revenue Streams: Revenue streams result from value propositions successfully offered to customers.
- Some activities are outsourced and some resources are acquired outside the enterprise. The business model elements result in the cost structure.
How are you using what you learned?
I definitely have a different approach when it comes to verifying an idea or a business model. If you truly want to do a new project, business or idea, it must be accompanied by a business model. A business model gives the idea, business or new product a sense of seriousness and defines if it’s feasible. Investors are not interested in words and want to see a more professionalize way of creating your business.
How can we as a company or individuals in the company use this?
Our organization can use this book as a resource for idea creation. It may also be used to teach or verify a new client’s business model. Often customers come to our firm with ideas that do not match up to finances or general implementation reality. By applying principles from this resource, employees can quickly gain insight to an idea or business plan’s feasibility.
Title: Business Model Generation
Author: Alexander Osterwalder