Title

Business Model Generation

Author

Alexander Osterwalder, et. al.

Publisher

Wiley

Sponsored

No

According to Wikipedia, a business model is “a description of a rationale of how an organization creates, delivers, and captures value”.  The first time I came across this definition was during an ITIL training. And if that definition feels in any way… vague, I understand. That’s exactly what I felt.  So, I decided to look for a book to help me understand.

The authors of the book created a visual way to create new or analyze existing business models using what they call a “canvas”.  Their “Business Model Canvas” has 9 building blocks: customer segments, value proposition, channels, relationships, revenue streams, key resources, key activities, key partnerships and cost structure.  You can find samples of the canvas with a simple web search.

The book takes you through the detail of what each block means, what it needs and how all blocks interact with each other.  I found the book clarifying and challenging, even as a game whenever I get a new business idea or if I get interested in a company, whether it’s for investing or even seeking job opportunities.

The authors of the book have created a series that complement the process, expanding even more on value propositions, testing exercises and also how you can apply business models to your personal life and goals.

I’ll expand on the books “Value Proposition Design”, “Testing Business Ideas” and “Business Model You” in later posts.