Wednesday, July 28, 2010

Business Model Generation


Business Model Generation

Business Model Generation will teach you powerful and practical innovation techniques used today by leading companies worldwide. You will learn how to systematically understand, design, and implement a new business model — or analyze and renovate an old one.

Business Model Generation practices what it preaches. Co-authored by 470 Business Model Canvas practitioners from 45 countries, the book was financed and produced independently of the traditional publishing industry. It features a tightly-integrated, visual, lie-flat design that enables immediate ha nds-on use.

The book is divided into five main sections that can be read on their own:

1. The business model canvas including definition and the nine building blocks: Customer Segments, Value Propositions, Channels, Customers Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships and Cost Structure.

2. Popular business model patterns including concepts from popular management literature such as Unbundling Business Models, The Long Tail, Multi-Sided Platforms, FREE as a Business Model and Open Business Models.

3. Business model design, using concepts such as customer insights, ideation, visual thinking, prototyping, storytelling and scenarios.

4. Strategy, including the business model environment, evaluating business models, business model perspective on blue ocean strategy and managing multiple business models.

5. Business model design process, including a 5 step process: mobilize, understand, design, implement and manage.

It provides many interesting business model examples such as Lego, Google, Nintendo Wii, Apple, Metro, Flickr, Red Hat, Skype, and more.

At the core of the book is the business model canvas, developed by Alex during his PhD work, and it's included in one form or another, on almost every page of the book. It is a graphical representation of the 9 business model components that Alex argues describe the rationale of how an organization creates, delivers, and captures value. It has created a shared language for describing, visualizing, assessing, and changing business models, and is widely used by business model innovation practioners.




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