12/28/2023 0 Comments Project canvas rbv![]() Where exactly can we find in BMC some important capabilities, like Competences & Skills, Management Systems, Culture & Behaviors, Information & Knowledge, etc. On one hand, some important Capabilities System's components are missing and those represented are in minority, compared to the rest of the model. Lastly, there is a strategic unbalance between the BMC boxes. Memorize it and compare it with how the causality should flow in such a model (see further on 'How should the canvas look like').ĭo you like it? Does it help you see clearly the flow of dependencies and correlations between Capabilities and between the Capabilities and the Strategic Choices they are supporting, helping achieve, in the end, your Business Goals? What you got is something that looks generically like the picture below. If you have used the BMC, you have drawn causality arrows from one box to the other. Let's get back to the BMC split and spread boxers and their wrong placement. Both types of choices, intrinsically-linked, are made at the business level, not one at business level and the other at corporate level! For instance, when we create a blue ocean, deciding to employ certain new competitive factors, along the Value Curve of our Value Proposition (how-to-win), we also target certain segments of marginal customers and/or non-consumers, deciding on our Market Boundaries (where-to-play). Many people are very confused about the scopes of Corporate Strategy and Business Strategy, thinking that the Market Boundaries choices (where-to-play) are decided at corporate level, not at business level. In the same way, our Market Boundaries choices (where-to-play) are determining how well do we target our desired customers (and not others!), how adapted is our Value Proposition to their specifics (and not to those of others!), how convenient is for these customers to purchase (sales channels) and use our products or services (customer services). If our competitors target the same customers (they play within the same Market Boundaries as us), it's the Value Proposition which determines if we win against our competitors (or make them irrelevant), or not. The combination of Value Proposition (how-to-win) and Market Boundaries (where-to-play) is what determines our customers to buy from us and to remain our customers. ![]() In which business representation would you put the 'top goals' at the bottom? Think again: Are they 'top goals' or 'bottom goals' for you?įurthermore, you can see that some Strategy components are split and spread throughout the model, rather than being consistently placed in the same position, as required by their role in Strategy's logical construct. For instance, the Revenue & Costs, which are part of any business' Strategy success quantification, should have been placed on top of the layout, not at the bottom, as if they would be some sort of enablers for the rest of the model. Are there any abnormal things that you can notice?įirst of all, you may notice that some BMC boxes are located in the wrong places. Take a look at the diagram below, which maps the Strategy components with the BMC template. It looks as this Business Model Canvas was created by a salesperson, not by a Strategy thinker. So, let's rephrase the question: What's wrong with the BMC, as a Strategy tool? My answer: Everything, because it ignores the fundamental components, causality and priorities that define the Strategy. That's also the desire of Alex Osterwalder, the 'co-creator' of the Business Model Canvas, to place it straight at the core of Strategy's tool-set, as proven by his 'strategyzer', a platform that promotes the BMC as a pivotal Strategy Management tool. But many people (including myself, sometime ago) intend to use the BMC as part of the Strategy Formulation process. What's wrong with the BMC?Īctually, nothing, as long as you want to use it as a customer-focused business assessment tool. This article is about how did this happen and about how should the Business Model be presented, for using such representation as a Strategy tool. So, I went from liking it to a complete dislike, once the veil of widespread marveled adulation for the nine boxes has raised from my eyes. But then I've tried to use it within the practice of Strategy Management and I've realized that, for this purpose, it's rather useless, or even toxic. Is it true that you like the 9-boxes Business Model Canvas (BMC)? So did I.
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