Defining a Complete Business Model
According to Osterwalder & Pigneur’s book Business Model Generation, there are nine “Building Blocks” from which are developed the “Business Model Canvas”. These nine elements should/must be included in formation of the business model, maintenance of the business model, and strategies implemented for the business. These are the nine elements they list:
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Key Resources
- Key Activities
- Key Partnerships
- Cost Structure
I think this list makes a great benchmark for making sure that a business owner/manager is paying attention to all of the performance elements of the organization. When you put the above together with the three available sources of capital described in Kaplan & Norton’s Strategy Mapping and Balanced Scorecard approach it creates a dashboard for scanning the business performance without losing track of any of the keys. So, the information capital must capture all of these and report against planned and actual projects and results. The human capital must be held accountable to communicate, understand, be cognizant, and report back within this paradigm. And, the organizational capital will be aligned and require all of these elements to be embedded.
Such a dashboard serves to guide businesses in any stage of growth or industry so it can be used to create a culture of awareness within the thinking of entrepreneurs, business managers, teams, or non-profit counterparts. As I am sure is evident, the use of a well structured modeling concept can simplify and enhance the creation and sustainability of the business.
By Michael Sacco – MBA, SHRM-SCP, SPHR
© 2015 Stratalyne Business Solutions LLC