Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
Alexander Osterwalder, Yves Pigneur
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.
Business Model Generation features practical innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others. Designed for doers, it is for those ready to abandon outmoded thinking and embrace new models of value creation: for executives, consultants, entrepreneurs, and leaders of all organizations. If you're ready to change the rules, you belong to "the business model generation!"
enjoy a free basic service and can pay for a premium service that offers additional benefits. customer acquisition costs total expenses a company incurs to acquire new users. percent of premium & free users specifies how many of all users are premium paying users or free users. bmgen_final.indd 103 price of premium service indicates the average cost the company incurs to deliver a premium service to a premium paying user. 6/15/10 5:38 PM free as a business Model Bait & Hook 104 patterns
pair has invented new concepts model in a conservative industry with developments. Through deep analysis such as Seats2meet.com, which allows established players is an art, and of key industry trends, and by develop- on-the-fly booking of meetings in one that has placed EFG International ing and using leading-edge analytical untraditional locations. Together, among the fastest growing banks tools, Dagfinn’s team explores new Sijgers and van den Hoff constantly in its sector.
necessarily the most realistic). Refer to the Ideation Process (see p. 134). • Develop three conceptual business model prototypes by sketching the elements of each idea on different Business Model Canvases. • Annotate the pros and cons of each prototype. Such comments alarm John, because he believes his industry employs some of the brightest minds in business. After much thought, he has concluded that this reputation results from an outdated business model, and he now wants to transform his own
applications programming groups, which managed the heart of its success at selling everything from books Amazon.com’s many Web sites. So they decided to build to furniture online (7). Amazon.com (8) delivered over so-called application programming interfaces (APIs) half a billion page impressions to online shoppers (9) in (12) between these two layers, which would allow the 2008, and spent over a billion dollars for technology and latter to easily build on the former. Ajit also remembers
Generation. }The last section offers an outlook on five business model topics for future exploration. Afterword Finally, the afterword provides a peek into “the making of” Business Model Generation. Outlook bmgen_final.indd 8 Process 6/15/10 5:31 PM 1 14 Canvas Definition of a Business Model 2 Patterns 56 Unbundling Business 3 Design 126 Customer Insights Models 4 Strategy 200 Business Model 5 244 Business Model Environment Design Process 134 Ideation 16 The 9