IDEO on Business Model Visualisation

IDEO first discuses the purpose of business model visualisation: Communicate it, consider the whole and be creative. They then introduce their visualisation approach. It starts with the value proposition and the markets segments. After that the channels and pricing models are addressed. These four elements constitute the consumer facing business model. Then the competitive strategy is addressed. This is followed by discussing the capabilities and partners. These two elements give the next element, costs. All these elements together constitute the static business model. The pricing model and the costs determine the profitability. Then the dynamics are added by addressing the growth strategy.

HackFwd: Business Models and How Technology is Changing Them from IDEO on Vimeo.

Charles Baden-Fuller on business models

Professor Baden-Fuller explains that the business model is about creating and capturing value and that both can be relatively simple or more complicated. He than differentiates between the business model today and in the future. For a robust future business model it needs to offer sustainable competitive advantage (value creation side) and there should be any chance that it will grow and become big (the value capture side, the scaling question).

Professor Baden-Fuller also discusses the talent of making the explanation of a business model come alive, like an artist making a decent picture. This helps businesses getting a grip on their current and future situation, and it gives them a story to tell to their stakeholders. Finally, he discusses the meaning of the term 'model' in terms of a working model telling the essence and an iconic model (like on the catwalk) people can refer to. He also links it to the code of corporate governance.



Professor Baden-Fuller is Professor of Strategy and leader of the Strategy Group at Cass. He is internationally known for his strategy research. Most famous for his work on the rejuvenation of mature firms. He was one of the co-editors of a special issue on business models in Long Range Planning (see also here or here).

Innovating Your Business Model

Mark Johnson, Innosight chairman, on how you can seize the white space. See also the book "Seizing the White Space: Business Model Innovation for Growth and Renewal," more information can be found here.

Business models 101

Watch Alexander Osterwalder, the creator of the Business model Canvas, explain the basics of business models, the three steps of why, what and how, in this video.