Monday, January 10, 2011

Power of Understanding Business Models

Leaders and managers of projects, programs, and initiatives in large organizations create new or improved products and services.  Increasingly, this requires a full understanding of the underlying business strategies and related business models.  Fortunately, an excellent book (and forthcoming iPAD app) is available, Business Model GenerationThe Model's Business Canvas, is a clever way to develop or assess any business model.  Key elements included in the Canvas include:

  • Key partners
  • Key activities
  • Key resources
  • Cost structure
  • Value propositions
  • Customer relationships
  • Customer segments
  • Channels
  • Revenue streams 

Alex Osterwalder, one of the creators, provides excellent slides on Slideshare. A recent blog post showed its application to the reverse engineering of Facebook's business model

 

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