Selecting Business Model Tools - Interactive Tool

The selection of business model tools is more an art than a science. The reason why is because there is no one-size-fits-all strategy. Neither is there a single approach to be taken, regardless of industry, market, or product/ service offering. But there is a framework that can be followed. The Business Model, developed by Alex Osterwalder (2010) provides such a framework.

The Business Cycle and Business Model Focus

Business Model Cycle

The Business Model framework represents the foundation, or delivery system, through which the company’s product/service offerings are created. Inputs into the business model include strategy, processes, protocols & policies, as well as mission and values. These in turn influence and guide what product/ services are offered, what competencies are developed, and what markets are penetrated.

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Whether the business’ goal is to undergo a merger & acquisition, internally launch a new product/ service offering, or streamline current operations the first step is to understand the business model. Your Business Model framework determines what opportunities are readily accessible. Building and strengthening the foundation will open up new opportunities. It is well worth the effort.

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The decisions made also determine the business model structure, the interdependence of its components, as well as how collaboration and innovations are pursued. This information is then formalized and captured by the business model’s planning and reporting structures.

Business Model Cycle

The Business Cycle Sorting Task

This task tests your memory for the structure (and often cited goals) of the traditional business cycle. Understanding the business cycle will help your team evaluate what opportunities and risks exist, as well as was strategies to consider.

Test

Drag & Drop: Business Cycle vs. Model terminology

This task tests your memory in distinguishing between the business cycle (which references the business’ developmental stage within the market) and the business model (which establishes the core components of an effective business foundation). Understanding the difference is crucial towards identifying what strategies fit which business cycle stage and business model component. For example, the business model structure influences where the business falls within the business cycle.

Test

Business Cycle Questionnaire

This tasks helps the team to begin exploring where its business falls within the business cycle. Understanding this will help the team determine what strategies are warranted, based on the business’ vision, values, and current competitive advantages.

Questionnaire

Evaluating Your Business Model within the Business Cycle

This next tool begins the formal planning process to strengthen the business model. When considering which tools (or strategies) to use the first considerations often begin with exploring the business culture, current strategies, and tools already available. Only when existing resources and assets are exhausted should new strategies or tools be considered.

Existing resources and assets are often considerably easier to implement than new ones. When new resources or assets are necessary the additional steps of training, communication, and change management are often required.

Evaluate Your Business Model

Whether the business’ goal is to undergo a merger & acquistion, internally launch a new product/ service offering, or streamline current operations the first step is to understand the business model. Your Business Model framework determines what opportunities are readily accessible. Building and strengthening the foundation will open up new opportunities. It is well worth the effort.

Resource:

Osterwalder, A., Pigneur, Y., Clark, T., & Smith, A. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley.

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