Business Model Generation
A guide to creating, analyzing, and reinventing business models.
Summary of 7 Key Points
Key Points
- The 9 Building Blocks of a Business Model
- The Business Model Canvas Framework
- Patterns of Business Model Innovation
- Techniques for Defining Customer Segments
- Revenue Streams and Cost Structures
- Designing Business Models under Constraints
- Strategies for Disruptive Business Models
key point 1 of 7
The 9 Building Blocks of a Business Model
The 9 building blocks of a business model provide a comprehensive framework for describing, analyzing, and designing business models. They are visually represented in the Business Model Canvas, which is structured as a pre-formatted template that allows entrepreneurs and strategists to clearly articulate how their company creates, delivers, and captures value…Read&Listen More
key point 2 of 7
The Business Model Canvas Framework
The Business Model Canvas (BMC) is a strategic management tool that allows individuals and organizations to develop, sketch out, and innovate on business models. It’s a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances. The BMC consists of nine building blocks, which include key partners, key activities, key resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams…Read&Listen More
key point 3 of 7
Patterns of Business Model Innovation
In the realm of business model innovation, patterns are essentially common configurations that are repeatedly observed within successful business models across various industries. These patterns serve as templates that companies can adopt and adapt to their unique context to create value and competitive advantage. Business model patterns are derived from the analysis of a multitude of business models and the extraction of elements that have consistently led to market success…Read&Listen More
key point 4 of 7
Techniques for Defining Customer Segments
Customer segmentation is the practice of dividing a company’s target market into approachable groups. The segmentation is based on shared characteristics such as demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience…Read&Listen More
key point 5 of 7
Revenue Streams and Cost Structures
Revenue Streams address the question of how a company makes income from each customer segment. Different streams may include asset sale, usage fee, subscription fees, lending, leasing, or renting, licensing, brokerage fees, and advertising. Each stream represents a different tactic for turning a company’s value proposition into financial gain. For example, a car manufacturer might generate revenue from a one-time purchase (an asset sale), while a car sharing service might earn money through a recurring subscription fee…Read&Listen More
key point 6 of 7
Designing Business Models under Constraints
Designing business models within constraints involves recognizing and understanding the limitations that exist within a business environment and using them as a guideline to create an innovative and viable business model. Constraints can come in various forms such as budgetary limitations, resource scarcities, technological challenges, regulatory environments, or market conditions. Instead of viewing these constraints negatively, they can be seen as opportunities to focus creativity and identify unique value propositions…Read&Listen More
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Strategies for Disruptive Business Models
In discussing strategies for disruptive business models, ‘Business Model Generation’ emphasizes the importance of innovation in creating new market spaces or reshaping existing ones. Disruption is seen as a powerful strategy to challenge incumbents and establish a foothold by fundamentally changing how value is created, delivered, and captured. It often involves a departure from traditional business practices and the introduction of novel concepts that can include unique value propositions, unexploited market niches, or innovative revenue streams…Read&Listen More