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!"
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Amazon.com Review
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!"
We often have trouble conceiving innovative business models because we are held back in our thinking by status quo. The status quo stifles imagination. One way to overcome this problem is to challenge conventional assumptions with “what if” questions. With the right business model ingredients, what we think of as impossible might just be doable. “What if” questions help us break free of constraints imposed by current business models. They should provoke us and challenge our thinking. They should disturb us as intriguing, difficult-to-execute propositions. What if...
…furniture buyers picked up components in flat pack form from a large warehouse and assembled the products themselves in their homes? What is common practice today was unthinkable until IKEA introduced the concept in the 1960’s. …airlines didn’t buy engines for their airplanes, but paid for every hour an engine runs? That is how Rolls-Royce transformed itself from a money-losing British manufacturer into a service firm that today is the world’s second biggest provider of large jet engines. …voice calls were free worldwide? In 2003 Skype launched a service that allowed free voice calling via the internet. After five years, Skype had acquired 400 million registered users who collectively had made 100 billion free phone calls.
The Power of “What If” Questions
Content from authors Alexander Osterwalder and Yves Pigneur
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…furniture buyers picked up components in flat pack form from a large warehouse and assembled the products themselves in their homes? What is common practice today was unthinkable until IKEA introduced the concept in the 1960’s. …airlines didn’t buy engines for their airplanes, but paid for every hour an engine runs? That is how Rolls-Royce transformed itself from a money-losing British manufacturer into a service firm that today is the world’s second biggest provider of large jet engines. …voice calls were free worldwide? In 2003 Skype launched a service that allowed free voice calling via the internet. After five years, Skype had acquired 400 million registered users who collectively had made 100 billion free phone calls.
Review
'...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).
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Customer Reviews
Most Helpful Customer Reviews
149 of 155 people found the following review helpful
Format:Paperback|Amazon Verified Purchase
This book is very different as a business book. Instead of being filled with dense, usually overly wordy pages, it is beautifully laid out, the wording is kept to a minimum, and there are lots of illustrations.
The book is focused on ways to think of the model for your business... with some nice guidelines for structuring the thought process... as well as a bunch of examinations of different types of businesses.
It has good discussions on thinking through what is critical for the business, where the cost structures are, where the benefits are, and how to organize and present those ideas.
It also has a number of cases studies of various companies that changed or invented new business models, such as Amazon's introduction of Web Services.
The book is fast to read, and there were several sections I bookmarked to put into use in my company, which to me is always a good sign for a book.
Where the book is lacking is that I would really have liked more case studies -- a bit more meat so to speak -- once a company came up with the new model, how did the artifacts of the book's discussions come into play with the execution? Did any of the techniques discussed help with the inevitable pitfalls associated? What are some case studies for when people tried the techniques discussed and failed miserably? Innovator's Dilemma, by comparison, does a much better look at both positive and negative case studies, which can provide a lot more learning.
I also would have liked more depth on the blue ocean discussion.
Altogether though, an interesting read and a good addition to my management book shelf.
The book is focused on ways to think of the model for your business... with some nice guidelines for structuring the thought process... as well as a bunch of examinations of different types of businesses.
It has good discussions on thinking through what is critical for the business, where the cost structures are, where the benefits are, and how to organize and present those ideas.
It also has a number of cases studies of various companies that changed or invented new business models, such as Amazon's introduction of Web Services.
The book is fast to read, and there were several sections I bookmarked to put into use in my company, which to me is always a good sign for a book.
Where the book is lacking is that I would really have liked more case studies -- a bit more meat so to speak -- once a company came up with the new model, how did the artifacts of the book's discussions come into play with the execution? Did any of the techniques discussed help with the inevitable pitfalls associated? What are some case studies for when people tried the techniques discussed and failed miserably? Innovator's Dilemma, by comparison, does a much better look at both positive and negative case studies, which can provide a lot more learning.
I also would have liked more depth on the blue ocean discussion.
Altogether though, an interesting read and a good addition to my management book shelf.
69 of 72 people found the following review helpful
By Ken Rider
Format:Paperback|Amazon Verified Purchase
"Business Model Generation" is a breezy read and a well-organized introduction to several related topics including: basic types of business models, techniques and strategies for generating ideas and thinking creatively about them, along with process steps for moving good ideas forward.
PROS: Anyone new to these topics would likely have to read four to six separate books to get the broad coverage you'll find here. The authors have done a service for folks who want to come up to speed more quickly and each chapter has additional references for further reading. The designers also deserve some credit for a creative and varied layout that makes the text seem fresher and more enjoyable. You can feel good about yourself as you plow through 50+ pages in half an hour without fatigue. The bonus: this is a business book that won't have you drowning in business jargon.
CONS: As several reviewers have noted, there's breadth here but not as much depth on the core topics as some might want. Those expecting more may be disappointed and some may find the title a bit misleading. Probably more accurate if they called it "A *PRIMER* for Business Model Generation" instead of a Handbook. Finally, the small font sizes that a few reviewers mentioned will surely be difficult to read for those with less-than-great eyesight. The tradeoff here, given the book's open design, is that a bigger font might have added a bunch more pages.
PROS: Anyone new to these topics would likely have to read four to six separate books to get the broad coverage you'll find here. The authors have done a service for folks who want to come up to speed more quickly and each chapter has additional references for further reading. The designers also deserve some credit for a creative and varied layout that makes the text seem fresher and more enjoyable. You can feel good about yourself as you plow through 50+ pages in half an hour without fatigue. The bonus: this is a business book that won't have you drowning in business jargon.
CONS: As several reviewers have noted, there's breadth here but not as much depth on the core topics as some might want. Those expecting more may be disappointed and some may find the title a bit misleading. Probably more accurate if they called it "A *PRIMER* for Business Model Generation" instead of a Handbook. Finally, the small font sizes that a few reviewers mentioned will surely be difficult to read for those with less-than-great eyesight. The tradeoff here, given the book's open design, is that a bigger font might have added a bunch more pages.
124 of 134 people found the following review helpful
Format:Unknown Binding
This is an absolutely superb book and my first and only book on business models. It is so up to date and filled with gems that I feel no need to read another anytime soon.
The book is aptly titled, being all about how to generate business models. However, you have to know what it is before you can generate it. To this end, the first section of the book is devoted to introducing a standard language and format for talking about business models. They introduce nine key items which serve as the building blocks for all business models. These are listed below, illustrated with Skype's business model.
CUSTOMER SEGMENTS: Who will use the product?
1) web users globally 2) people who want to call phones
VALUE PROPOSITION: Why will they use the product?
1) free Internet and video calling 2) cheap calls to phones (SkypeOut)
CHANNELS: How will the product be delivered to the customers?
[...] and headset partnerships
CUSTOMER RELATIONSHIPS: how will you develop and maintain contact with your customers in each segment?
Mass customizedMass customized
REVENUE STREAMS: How is revenue generated from which customer segments?
1) Free 2) SkypeOut prepaid or subscription
ACTIVITIES: What are the key things that you need to do to create and deliver the product?
Software development
RESOURCES: What assets are required to create and deliver the product?
PARTNERS: Who will you want to partner with (e.g suppliers, outsourcing)
Payment providers, Distribution partners, Telco Partners
COST STRUCTURE: What are the main sources of cost required to create and deliver the product?... Read more ›
The book is aptly titled, being all about how to generate business models. However, you have to know what it is before you can generate it. To this end, the first section of the book is devoted to introducing a standard language and format for talking about business models. They introduce nine key items which serve as the building blocks for all business models. These are listed below, illustrated with Skype's business model.
CUSTOMER SEGMENTS: Who will use the product?
1) web users globally 2) people who want to call phones
VALUE PROPOSITION: Why will they use the product?
1) free Internet and video calling 2) cheap calls to phones (SkypeOut)
CHANNELS: How will the product be delivered to the customers?
[...] and headset partnerships
CUSTOMER RELATIONSHIPS: how will you develop and maintain contact with your customers in each segment?
Mass customizedMass customized
REVENUE STREAMS: How is revenue generated from which customer segments?
1) Free 2) SkypeOut prepaid or subscription
ACTIVITIES: What are the key things that you need to do to create and deliver the product?
Software development
RESOURCES: What assets are required to create and deliver the product?
PARTNERS: Who will you want to partner with (e.g suppliers, outsourcing)
Payment providers, Distribution partners, Telco Partners
COST STRUCTURE: What are the main sources of cost required to create and deliver the product?... Read more ›
45 of 51 people found the following review helpful
By Marbled Rye
Format:Paperback|Amazon Verified Purchase
I had hopes for this book, which is billed as a practical, hands-on guide and an antidote to clunky writing and inflated word count of most business books. The reality is that this book mostly provides a superficial and somewhat arbitrary tour of business concepts. It may be useful to you if you're encountering many of these concepts for the first time, but otherwise you're likely to be underwhelmed. Here, for example, is the book's final words on the matter of sales channels:
"The trick is to find the right balance between the different types of Channels, to integrate them in a way to create a great customer experience, and to maximize revenues."
That is indeed the trick! Does the book offer any insight into how one might pull off this trick, either in terms of specific strategies or compelling case studies? The answer is pretty much: nope. If you've literally never considered how different sales channels affect your business, then the book might provide a useful spark. Otherwise, don't expect to learn anything.
The portions of the book that do focus on specific strategies are in some ways worse, because they tend to be overly selective and fadddish. For example, the book devotes a few pages each to exactly five possible patterns for business models: unbundling, long tail, multi-sided platforms, freemium, and open. Perhaps useful as an extremely abbreviated summary of trendy business ideas in the early 2000s, the list seems more likely to lead entrepreneurs astray than yield any true insight.
From a practical standpoint, I think it's useful to have a systematic framework through which to analyze and compare business models, and if this book provides such a framework for you, then great. And at least it's a quick read.... Read more ›
"The trick is to find the right balance between the different types of Channels, to integrate them in a way to create a great customer experience, and to maximize revenues."
That is indeed the trick! Does the book offer any insight into how one might pull off this trick, either in terms of specific strategies or compelling case studies? The answer is pretty much: nope. If you've literally never considered how different sales channels affect your business, then the book might provide a useful spark. Otherwise, don't expect to learn anything.
The portions of the book that do focus on specific strategies are in some ways worse, because they tend to be overly selective and fadddish. For example, the book devotes a few pages each to exactly five possible patterns for business models: unbundling, long tail, multi-sided platforms, freemium, and open. Perhaps useful as an extremely abbreviated summary of trendy business ideas in the early 2000s, the list seems more likely to lead entrepreneurs astray than yield any true insight.
From a practical standpoint, I think it's useful to have a systematic framework through which to analyze and compare business models, and if this book provides such a framework for you, then great. And at least it's a quick read.... Read more ›
Most Recent Customer Reviews
5.0 out of 5 stars
Business Model Generation is a landmark book
I met Alex before I bought his book. The book is very good in that it is useful and hands on rather than theory. He is the real deal and this book is as well. Read more
Published 18 hours ago by Christopher Hodges
5.0 out of 5 stars
Business Model Generation: A Handbook for Visionaries, Game Changers,...
Bought this book as a gift; the person really appreciates it and has used it as a guide to model his business plan.
Published 5 days ago by KK
5.0 out of 5 stars
From the academic to the real world - the power of crowdstorm.
It is very good compare the thesis that generated the book (that is very interesting) with the book produced years latter. Read more
Published 5 days ago by Claudia Mendes Nogu
5.0 out of 5 stars
A Great Starter For Business Models
I remember having this book in college and it actually being useful. It was organized, easy to understand, and helped you achieve what you wanted to. Read more
Published 6 days ago by BigT
5.0 out of 5 stars
Business Model Generation for those who didn't know they needed one...
Wow. Very practical guide to evaluating your business idea, determining how your business will function, and writing it all down so anyone can understand it. Read more
Published 9 days ago by Larry Perkinson
5.0 out of 5 stars
Made me think!
To a certain extent, the material in here has been covered for the last few decades.
For me it made think about the process a little differently and that is a VERY GOOD... Read more
For me it made think about the process a little differently and that is a VERY GOOD... Read more
Published 13 days ago by Frank J. Spevak
5.0 out of 5 stars
INSIGHTFUL BOOKemry
The book is clearly a significant contribution to the process of developing and writing business models and plans. Read more
Published 13 days ago by MR M N MOTSATSE
1.0 out of 5 stars
Terrible display on my Kindle
If you are planning to read this book on your Kindle do not waste your time or money. The diagrams displayed terribly
Published 18 days ago by PeterM
5.0 out of 5 stars
The bible for entrepreneurs
Alexander simplifies the steps to create a successful and scale-able startup! This a really helpful book. I really got a lot out of reading it.
Published 18 days ago by James W. Kenney
4.0 out of 5 stars
To the point guide on how to puzzle an idea into a plan
There are many of books on strategy or business planning, but little are so to the point and simple as the canvas in Business Model Generation. Read more
Published 20 days ago by Rogier
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