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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers Paperback – 20 Aug 2010
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an impressively comprehensive compendium of many of the most current ideas concerning the structure and development of businesses.′ (Anglohigher.com, May 2011). ... this handbook is likely to prove an excellent help for evaluating business models . (Anatello.com, July 2011).
... this handbook is likely to prove an excellent help for evaluating business models . (Anatello.com, July 2011).
From the Inside Flap
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.
Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization. It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context. You will learn how to systematically understand, design, and implement a game-changing business model--or analyze and renovate an old one. Along the way, you'll understand at a much deeper level your customers, distribution channels, partners, revenue streams, costs, and your core value proposition.
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The format of the book is very engaging, very graphic, and very snappy and to the point. There has been a wealth of experience behind this book and nowadays there is a lot of evidence that this really works. I've drawn up numerous business plans in the past and they serve only one purpose, to raise money, and then they become scrap. "Planning is everything the plan is nothing" The business models you will develop using this methodology will become live and dynamic and provide real insight and validation that your company is on the right track and where you are going.
I have some criticisms about how easy it is to read and the fact that the content is more style over substance. For one thing, to create space for all the funky images, the words are in a small font. I was OK but I know that some people will struggle.
I like the idea of the one page Business Model Canvas which is described as "a shared language for describing, visualising, assessing and changing business models." It looks very useful to summarise your existing business model and for moving towards better ways to create, deliver and capture value.
The Business Model Generation Canvas has nine elements:
1 Customer segments
2 Value propositions
4 Customer relationships
5 Revenue streams
6 Key resources
7 Key activities
8 Key partnerships
9 Cost structure
As you can see, it is a tight summary of a business with a balance between external and internal factors.
Business models are important because they are the means to deliver your differentiation strategy. Without a coherent plan, any differentiation is likely to be shallow. Marketing hype may fool the customers into buying such a shallow differentiated product once but probably not again.
The exercise of filling in the Business Model Canvas will help you to focus on the few things of business model design that matter although you need to have thought through your differentiation strategy first.
Beyond the the Business Model canvas, I was disappointed. Because the book looks so different and special, I was expecting the content to match.
But it didn't. I thought it was pretty superficial.
It is a good introduction to thinking about business design although it assumes that's the answer you want rather than giving you a diagnostic to establish whether business design lies at the heart of your business issues.
I'd have liked to have seen more consideration of the value proposition and how it is different from competitors now and what they are likely to develop in the future. The authors have since written another book to address this issue but again, I was disappointed and only gave that book Three Stars.
This one however, overall and despite its flaws is an important book and the Business Model Canvas has become a popular tool.
Paul Simister, a business coach who helps business owners who are stuck, get unstuck.
This review first appeared on my Differentiate Your Business blog in August 2011.
I recently finished my undergraduate degree in International Business and still find the book to have taught me new concepts and most importantly a more structured approach to business model generation and innovation.
In conclusion, if you want to innovate within your company or create a business from scratch, this book will be a good investment.
Louise Prunty - Author of 'How to become an award winning business - in 7 steps'
How To Become An Award Winning Business in 7 Steps: 1
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