The business model canvas is a prescriptive model
Ted Ladd, Professor, Social and Internet Entrepreneurship, Hult International Business School
The first step in becoming social entrepreneur and to envision, test, and then implement social ventures is to recognize what a business model is. It's the logic by which an entrepreneur creates and captures value. It's not the product. Indeed it's everything outside of the product. In the middle of the business model canvas you'll see one element that's for a value proposition. That's not the features, the functions, the colors of the product or the service that you want to offer. That is the core benefit that the customer will receive by using this particular product or service. And then everything else around the business model is an extension of that.
Business model canvas is a prescriptive model. And, in a single graphic, this is a demonstration, graphically, that all of the elements of a business model are interrelated. If you're going to change one item of the business model, you need to recognize that it's going to have ripples through all of the other elements. And perhaps you could even infer that the elements that are graphically located closer to the item that you're changing, are going to change the most. For example, if you're going to change the channel that you use, if you look at the business model canvas. That may mean that the customer segments, the customer relationships, the value proposition and the revenue streams will change the most. Those happen to be the items that are geographically proximate to the channel on a business model canvas.
The first step in becoming social entrepreneur and to envision, test, and then implement social ventures is to recognize what a business model is. It's the logic by which an entrepreneur creates and captures value. It's not the product. Indeed it's everything outside of the product. In the middle of the business model canvas you'll see one element that's for a value proposition. That's not the features, the functions, the colors of the product or the service that you want to offer. That is the core benefit that the customer will receive by using this particular product or service. And then everything else around the business model is an extension of that.
Business model canvas is a prescriptive model. And, in a single graphic, this is a demonstration, graphically, that all of the elements of a business model are interrelated. If you're going to change one item of the business model, you need to recognize that it's going to have ripples through all of the other elements. And perhaps you could even infer that the elements that are graphically located closer to the item that you're changing, are going to change the most. For example, if you're going to change the channel that you use, if you look at the business model canvas. That may mean that the customer segments, the customer relationships, the value proposition and the revenue streams will change the most. Those happen to be the items that are geographically proximate to the channel on a business model canvas.
This blog post is based on my learnings from the course on ‘social entrepreneurship’ offered by Copenhagen Business School through Coursera (2014).
Comments
Post a Comment