New Problems, Same Old Tools
There are a broad range of tools that companies use to create and execute strategy: from SWOT analysis to PEST models, from Porter’s 5 Forces to the Balanced Scorecard. They are all helpful in their own way, but the tools have not kept pace with today’s dynamic market. Consumers and customers need to be at the center of the equation, digital is everywhere, and data analytics are combined with AI to make sense of volumes of data.
How do the tools of yesterday keep up with the business challenges of today and tomorrow? We begin with one of today’s most commonly used tools, the Business Model Canvas (BMC).
The Business Model Canvas
The Business Model Canvas, introduced by Alexander Osterwalder in Business Model Generation, is a visual representation of a business model. The BMC has endured because it is simple to complete, to understand, and to communicate.
The model includes nine components, which together are lauded for providing a holistic view of the business:
Benefits of the Business Model Canvas
The BMC continues to be one of the most popular strategy tools and has a wide number of benefits. The largest of these benefits include:
Drawbacks of the Business Model Canvas
Taking the Next Step with Your BMC
Depending on your stated purpose, the BMC can be incremented or combined with other tools to become even more valuable. Incorporating a “Customer Problem” section and making it your starting point, or at least making it part of the “Value Proposition” section, is critical for any BMC. The example below also adds a “KPI” section which is very impactful. Of course, strategists should add other relevant sections to their model as needed, such as competitors and stakeholders, to increase the tool’s value.
Mike is Aspirant's president, and a proven strategic leader in creating corporate visions and achieving their full value. He has delivered results across a spectrum of corporate and consulting leadership roles, and understands what organizations truly need to expedite change and deliver value faster. Mike’s unique combination of business experience in Strategy, Marketing, Operations, Supply Chain, Business Transformation, Technology, Capability Building and Culture Change enables him to provide a broadly informed viewpoint when solving enterprise problems or striving to take advantage of market opportunities. He serves as a key leader to bring the vision of Aspirant to life for clients across North America and the globe.
March 25, 2020
March 18, 2020