Detailed analysis of building blocks and their interrelationships in the business model template by Alexander Osterwalder

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Business Model Generation PDF Rogue Connect
Creation of a business model according to Osterwalder

Finding a bottleneck in your company or introducing sustainable business innovation, be it a completely new product or changing an old market proposition, requires a top-down look at all the key processes and entities within the company. Strategists need to learn to look at the entire organization as a system of interconnected components that can be changed at will and see what happens as a result.

Of course, you can experiment right away on real people. But this is dangerous and difficult - any change can drown in approvals, tactical mistakes. It is much easier to train on models. First, simulate the current state of affairs, map out innovative changes on the model, test consistency and sustainability, and then deploy the model to a real business.

The model, in fact, is a common language spoken by all participants in the strategic process. This article describes Alex Osterwalder's concept of generic business models. This method of modeling is used by IBM, Deloitte, Ericsson, Megafon, Sberbank and many other companies.

Osterwalder's Business model canvas

The business model reflects the logic of the value creation process in the form of nine interconnected blocks, divided into four main areas of business:

  • Product
  • Interaction with the consumer
  • Infrastructure
  • Financial efficiency


Consumer segments

This building block describes one or more customer segments with which the company works. A segment is a group of people united by a common problem or need. Segments are of several types: mass market, niche market, complex segments (young moms, office workers in corporations).

The more precisely a company formulates a customer segment, the easier it is to offer customers in that segment a valuable product.

Value propositions

A value proposition is the reason why customers buy a product by choosing your company and not competitors. Selling idea of ​​your product, unique selling proposition. The purpose of value propositions is to solve the problems of customer segments. Each value proposition is a set of goods, services and services that meet the needs of the client segment.

Some value propositions can be innovative, creating new markets, or highlighting new segments within existing markets. Others improve existing market offerings by adding new consumer characteristics and properties that are important and meaningful to consumers.


Sales channels

This block describes how a company interacts with its customer segments before, during, and after purchasing a product. Distribution channels are points of contact for product promotion and customer service. Distribution channels can be divided into five stages:

  • Information. How do we educate consumers about our value proposition?

  • Grade. How do we help make a choice in our favor by comparing market offers?
  • Sale. How is our product sold directly?
  • Delivery and adaptation. How do we deliver the value proposition to the customer and create a positive first impression of the product?
  • Service. How we provide support and other after-sales services.

Each of these stages can be served both by the company's own channels (advertising, website, account managers) and with the help of partners. Affiliate sales channels can bring less profit, but they allow you to reach a larger number of consumers and build trust in the product at the expense of the partner's authority.