Despite the recent proliferation in business model representation, business model visualization is relatively poor and still fraught with many problems. I’ve observed 10 Business Model Problems, each problem of which has been solved by the “3-Act Business Model Network,” a simple and information-rich platform for visualizing, organizing, integrating, discussing, innovating on, testing, evaluating, benchmarking, and managing business models as well as stories.
In brief, the 3-Act Business Model Network provides an all-in-one platform for facilitating not only business model prototyping, strategy, validation, and execution but also story prototyping, testing, and management. Using the “rich” 3-Act Business Model Network, you could achieve great savings in time, cost, and energy while holistically prototyping and managing business models as well as inspirational stories of change.
To facilitate use of the 3-Act Business Model Network, the tool is applied to the business model of Apple’s iPod; see http://goo.gl/zdZ05f
Below is a list of 10 problems that plague other representations of a business model.
#1: TOWER-OF-BABEL Problem
#2: BUILDING BLOCK OVERLOAD Problem
#3: INCOHERENT BUSINESS-MODEL-LOGIC Problem
#4: REVERSE-INCOME-STATEMENT Problem
#5: ASSUMPTION-FORMULATION-AND-TESTING Problem
#6: PERFORMANCE-MANAGEMENT Problem
#7: EXTERNAL BUSINESS MODEL INTEGRATION Problem
#8: HOLISTIC BUSINESS MODEL Problem
#9: UNILEVEL BUSINESS MODEL Problem
#10: SHARED-VALUE Problem