The document discusses what a business model is. It is: 1. A concept that provides a simple and clear framework for understanding a business, like the concept of a flower. 2. A visual language like musical notation that allows you to see relationships between elements and get the big picture, better than text alone. 3. A method that provides a five-phase process for designing business models and integrates with other innovation and strategic tools.

1. What's this
Business Model thing?

2. 1 - It's a Concept

3. Example: the concept of Flower.
An Eskimo can understand what an Orchid is, even if he has
never seen one, if he masters the concept of Flower.
Petal
Corolla
Stamens
Stem

4. Everything should be made as simple as possible, but no
simpler. (A. Einstein)
The Business Model concept is simple and clear.
Value Customers
Activities Proposition
Relationship
Resources
Channels
Costs and
Partners Revenues

5. The Business Model concept was reformulated by
Alexander Osterwalder.
It was published in the book: Business Model Generation.

6. 2 - It's a language

7. Example: musical notation.
The language of music lets you write on paper: sentences,
stories and musical operas.
Rules Meaning
Pac-Man
1/8 1/16
4/4 1/2 1/4
Mozart
F G A
D
C

8. It's a visual language.
The combination of text and images activates both brain
emispheres. Problem solving is up to 75% better.
Memory's performance is 600% better.
Brain
100 %
Active
+ =
Text

9. You can see the relationships between elements.
This language gives you the big picture of a Business Model.
In a textual document, instead, information is layed out as a
sequence and the relationships aren't immediately clear.
y r e l a t i o ns h i p s i n
M an pa
ra
Sequential.
lle
guadagno = ricavi - costi
l.
.
ge
pa
on e
E v e r y t h i ng i n

10. 3 - It's a method

11. The method suggests a five fases process for
designing Business Models.
The process covers the whole lifetime cycle of a
Business Modlel.
Process
1 2 3 4 5
Mobilize Understand Design Implement Manage

12. The method integrates with many innovation techniques.
Customer Insights, Ideation, Visual Thinking, Prototyping,
Storytelling, Scenarios ...
Customer Insights
What does he think?
What does What does
he hear? he see?
What does
he say?
Pain Gain

13. The method integrates with many strategic tools and techniques:
Blue Ocean Strategy, SWOT analysis, Business Environment
analysis, Customer Development.
Business Environment SWOT Analysis
trends
strength weakness
industry markets
opporunity threat
macroeconomics

14. What's this
Business Model thing?
1 - It's a concept: it lasts forever.
2 - It's a language: for communication.
3 - It's a method: for innovation..

15. For workshops and assistance in business modeling
in Italian www.hugowiz.it
Special thanks to Alexander Osterwalder for
publishing the method.
www.businessmodelgeneration.com
$Date: 2011-10-24 15:56:03 +0200 (lun, 24 ott 2011) $ $Revision: 54 $
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