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Business Model Generation

Management Models.

Management models and Business Model Generation are still very interesting subjects.  When can you apply them, how do you apply them, should you apply them? Good to know what you can do with management models and not. Management models have the following characteristics:

  • Give an insight in specific problems
  • Regard the reality
  • Answer a specific question
  • Can be used for simulations
  • Offer transformation of knowledge to others
  • Can be used for analysis
  • Can be used for interpretations
  • Can be used for implementations
  • Are a simple view of reality
  • Are validated

However there is a clear difference between a model and a acronym. The list above doesn’t count for acronyms. An acronym for example is SMART, Specific, Measurable, Acceptable, Realistic and Time specific. When choosing a model it is important first  to find out what the question is that has to be answered. For instance is the question: ‘How interesting is this branch?”, than this question can be answered with the competitive forces model of Porter.

BUSINESS MODEL GENERATION

Business Model Generation Evaluation Graph

BMG Evaluation Graph Detail

To get a clear view of business models Business Model generation from Alex Osterwalder, Pigneur e.a. is a very helpful tool. With the nine building blocks of the CANVAS the most important aspects of the organisation are mapped.  To be able to support companies with the BMG  a specific Methodology BMG (Sheets) has been developed. This methodology describes the different steps in starting with an assignment, do the proper research, develop new business models and finally implement a new strategy for the company.

Once the canvas is mapped one has a clear overview of the business model. Each model can be evaluated with a large number of questions. There are three possible ways of evaluation. The first is an evaluation of the Business Model whether it is a existing business model or an new business model. The second is a comparison of the Business Model between the evaluation of the customer and an evaluation of a consultant. The consultant has based the evaluation on research whilst the customer has answered the question based on his knowledge of the company. The difference between the customer and consultant leads to discussion of what is right in the business model and where improvement or innovation are possible. The third evaluation is a Benchmark meaning a comparison between the business model of the company with all companies in the benchmark or a subset based on branch or country.

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