Taking It a Step Back: The Business Model Generation

#MarketingMondays

Taking It a Step Back:  The Business Model Generation

The Business Model Generation the best selling book written by Alexander Osterwalder and Yves Pigneur.  It simplifies the business model and breaks it down into 9 segments:

• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
• Key Resources
• Key Activities 
• Key Partnerships
• Cost Structure

*Taken from the PDF preview of the BMG (http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf)
 **Definitely take the time to read through the PDF.  There's a lot of great information in there.

What I like about this model is the fact that it breaks down the important parts of a successful business model.  Not only that, but there is the blank business model canvas below that helps you get started.

It is important for your company to have a solid business plan in place.  If not, you might find you or your company taking on more opportunities and ultimately stray from your original value prop.

It is also important from the marketing perspective because your marketing efforts should align with the rest of your business efforts.  You need to be able to identify your target audience, what channels you are using to get your product/service to market - all the things listed in the business model canvas.

Once those are identified, you now have legitimate goals to base your marketing campaigns off of.  There becomes a method behind your madness. You need to be able to understand the where and the why of your marketing efforts. 

If you have been in business for a while, the business model canvas/generation is also a great tool to help you to revisit your original business plan.

Have you used the business model generation or business model canvas before?  What are your opinions?  Let us know!