- Paperback: 288 pages
- Publisher: John Wiley and Sons; 1st edition (July 13, 2010)
- Language: English
- ISBN-10: 0470876417
- ISBN-13: 978-0470876411
- Product Dimensions: 9.5 x 0.7 x 7.3 inches
- Shipping Weight: 1.4 pounds (View shipping rates and policies)
- Average Customer Review: 4.5 out of 5 stars See all reviews (569 customer reviews)
- Amazon Best Sellers Rank: #1,211 in Books (See Top 100 in Books)
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Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers Paperback – July 13, 2010
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From the Publisher
Business Model Generation
'Business Model Generation' offers you powerful, simple, tested tools for understanding, designing, and implementing a new business model — or analyzing and renovating an old one.
Value Proposition Design
'Value Proposition Design' helps you tackle a core challenge of every business — creating compelling products and services customers want to buy. Using the same stunning visual format as Business Model Generation, this sequel explains how to use the 'Value Proposition Canvas' a practical tool to design, test, create, and manage products and services customers actually want.
The Big Pad of Business Model and Value Proposition Canvases
This supplement to the bestselling books, 'Business Model Generation' and 'Value Proposition Design', gives you more space to scribble, brainstorm, and move sticky notes—with 50 blank, extra-large, tear-out Business Model Canvases and 50 blank, extra-large, tear-out Value Proposition Canvases. The large format makes it easier to keep the creative ideas flowing, be inspired, and share your work with others.
Business Model You
Most of us lack a structured way to reinvent ourselves, even as changing workplace business models make professional and personal life more challenging than ever. 'Business Model You' is your guide to replacing career uncertainty with career confidence by using the single-page blueprint that's helped reinvent thousands of organizations worldwide.
|Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers||Value Proposition Design: How to Create Products and Services Customers Want||The Big Pad of 50 Blank Business Model Canvases and 50 Blank Value Proposition Canvases||Business Model You: A One-Page Method For Reinventing Your Career|
|Authors||Alexander Osterwalder, Yves Pigneur||Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith, Trish Papadakos||Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith||Timothy Clark, Alexander Osterwalder, Yves Pigneur|
|Pages||288 pages||320 pages||216 pages||264 pages|
|Trim Size||9-1/2 x 7-1/2 in.||9-1/2 x 7-1/2 in.||15-1/4 x 10-7/8 in.||9-1/2 x 7-1/2 in.|
|Description||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.||Using the same stunning visual format as Business Model Generation, this sequel explains how to use the 'Value Proposition Canvas' a practical tool to design, test, create, and manage products and services customers actually want.Practical exercises, illustrations and tools help you immediately improve your product, service, or new business idea. In addition the book gives you exclusive access to an online companion on Strategyzer.com. You will be able to complete interactive exercises, assess your work, learn from peers, and download pdfs, checklists, and more.||This supplement to Business Model Generation and Value Proposition Design gives you more space to scribble, brainstorm, and move sticky notes—with 50 blank, extra-large, tear-out Business Model Canvases (15” x 11” or 38cm x 28cm) and 50 blank, extra-large, tear-out Value Proposition Canvases (15” x 11” or 38cm x 28cm). The large format makes it easier to keep the creative ideas flowing, be inspired, and share your work with others. In addition to the 100 blank canvases, the two sample 'learning canvases' provide trigger questions to help you learn to use each box in the canvas and jump-start progress.||Business Model Generation introduced a unique visual way to summarize and creatively brainstorm any business or product idea on a single sheet of paper. Business Model You uses the same powerful one-page tool to teach readers how to draw 'personal business models', which reveal new ways their skills can be adapted to the changing needs of the marketplace to reveal new, more satisfying, career and life possibilities.|
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!"
The Power of “What If” Questions
Content from authors Alexander Osterwalder and Yves Pigneur
…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.
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).
Find out if you have what it takes to drive innovation in your business [PDF].
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Top Customer Reviews
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 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?
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?
Software development, complaint management
These building blocks are laid out on a page in a very specific way, referred to as a "business model canvas". As each chapter unfolds, we get a clearer and clearer understanding of each building block and how to use them to create, evaluate and communicate business models.
The business model canvas can be used to describe any of a wide variety of business models. Patterns emerge which correspond to categories of business models. For example, the Long Tail business model is all about selling less of more. The focus is on "offering a large number of niche products, each of which sells relatively infrequently". This pattern is illustrated with the transformation of the book publishing industry and Netflix.
Another example is the so-called "Freemium" business model used by Skype and countless other Internet businesses. This is compared with the standard Telco model making the two models easy to compare. A similar analysis compares the traditional computer gaming model used by Sony and Microsoft which competes on high performance with Nintendo's Wii business model which focuses on casual gamers and a dramatic reduction in development costs. Visualizing these alternatives on a canvas is very powerful (much easier than the above lists).
The Freemium model is a special case of a more general "multi-sided market" pattern which "brings together two or more distinct but interdependent groups of customers". For example, Google gives away a variety of services to one customer segment, the average web user, and earn income from keyword auctions from advertisers, which comprise the other side of the pattern. As is typical with the multi-sided market pattern, the key resource is the platform which facilitates interactions between the two customer segments.
Another major section of the book is devoted to designing business models. Very explicit instructions and tips are given in the context of an overall process. Different phases include: gathering customer insights, ideation/brainstorming, visual thinking, prototyping, storytelling and scenarios.
A major section on strategy includes a section on how to evaluate existing business models, identifying problems, and brainstorming about possible solutions. Nintendo's Wii is featured. One problem with the traditional gaming model is that consoles are sold at a loss to a relatively small market. By eliminating the huge cost of gaming platform development and adding motion-controlled games with a family focus, the market grew much larger.
The design and layout of the book is equally delightful. It is a cross between a Powerpoint pitch and a regular book, and is easy and fun to read.
The only negative I can think of is the binding. I don't know the lingo, but basically, the front and back (hard) covers are not directly connected to each other. Between them are the sewn and glued sections of the book that are normally hidden. Unfortunately, the book seems to be flimsy. But this is a minor niggle.
Overall, this is a brilliant book. If you have any interest in business models, get it as soon as you can. I got mine by chance on a recent trip to Europe while visiting a colleague. I saw that it was not available yet in the US, so he traded me for my copy of an equally excellent book: The new business road test: What entrepreneurs and executives should do before writing a business plan (2nd Edition).
One problem that proliferates throughout the book is in how it categorizes components when dissecting model elements. Their categories are time and again overlapping and incomplete - thus appearing arbitrary. For example, when detailing the different types of revenue streams, the following categories are given as distinct and complete: Asset Sale, Usage Fee, Subscription Fee, Lending/Renting/Leasing, Licensing, Brokerage Fees, and, Advertising. How would you categorize the hotel business? The authors put this under Usage Fee. Why? It seems a lot like Renting to me. How about Gillette's razor blade model? The authors talk about it later in the book (termed the Bait-And-Hook model), but do not categorize this type of revenue stream here. Odd. But the overarching problem is that the categorization throughout the book is consistently arbitrary, and reminds me of Michael Scott from The Office proclaiming, "There are four kinds of businesses: tourism, food service, rail roads, and sales, ... and hospitals/manufacturing, ... and air travel".
Another problem is that the book delves into topics that are ancillary at best to the primary topic and are better covered in books dedicated to the topic. For example, under the guise of how to design a business model, the authors get diverted into the topic of creating an innovative ideation process. If you really want to know how to do this, read Innovation Tournaments by Terwiesch & Ulrich. The section of the book about scenario planning is cursory at best and overly simplistic at worst. Read The Entrepreneurial Mindset by McGrath & MacMillan to learn about discovery-driven planning, a very useful framework which isn't even covered in Business Model Generation.
The book contains a major section on strategy, which is nothing more than a bastardization of Porter's 5-Force model. The issue here is that Porter's model is clear and concise whereas the BMG book again suffers from bad categorization. I am not sure why they felt they needed to re-invent Porter's framework (perhaps copyright restrictions), but what really bothered me was the misapplication of the framework. Porter's model, contained within the Positioning school of strategic thought, deals only with static corporate strategy, i.e. the question of in which businesses you should compete assuming they are not changing. It does not tell you how to compete once your business is chosen. At the time of generating business models, I would assume that your business is already chosen. Sure, it is fundamental to have a deep understanding of the business itself, so at the time of generating a business model, if you haven't already done a 5-Forces analysis, you should probably do it post-haste. In fairness, the authors use their bastardized strategy analysis with hopes of developing a disruptive business model. They defer to the popular book Blue Ocean Strategy by Kim and Mauborgne, but if you really want to learn how to generate disruptive ideas, read both The Innovator's Dilemma and The Innovator's Solution by Christenson.
The part of the book that I most looked forward to was the section on Patterns, i.e. the primary architectures of business models. This was indeed a good section, but it is hardly a treatise on the subject, and what's more, has a bent toward IT examples and the dotcom mindset - which proliferates throughout the entire book. I was hoping for something more academic and fundamental. I wanted to know what patterns work in which situations and why. There was no depth to be found here.
One point that struck me as particularly curious is that on one of the final pages of the book, the authors admit that the business model is only one part of the full business plan. It would seem to me better to write a book about generating business plans, in total, with business models contributing a meaty chapter.
The best part of the book is their Business Model Canvas, which is a template used to dissect and even generate business models. It would be useful when doing strategy cases in business school, and I am sure I can find some application for it in my strategy work. It's novel, but not groundbreaking - plus you can download it for free from their website.