Having a background in design, I am used to working with prototypes. I am trained to reduce complexities and deliver concrete answers to complex problems in the shape of products, services, and user stories. But when we zoom out and take a bird’s-eye view of a business, I miss having a tool that is able to convey strategies and business plans in a simple and comprehensible way. But in The Business Model Canvas I have found a tool that makes it possible to work with business models, in the same way as I normally work with product development and I will share a few tips on how you can use the canvas.
A brush-up on The Business Model Canvas
IS IT A BIRD went to London in order to participate in one of Alexander Osterwalder’s famous workshops. The aim was to improve our capabilities when working with business models and his Business Model Canvas. The workshop attracted consultants and businesses from all over the world, and over the course of two intense days we got to challenge IIAB’s own business model, sketch prototypes of new strategic alternatives, and most importantly we renewed and refreshed the way we talk about business development and innovation.
In The Business Model Canvas, details and minutiae are removed so that the story of the business model becomes clear. In this way, it easily lends itself to further development, evaluation, and retelling – just like a prototype. It makes it possible to work with and understand an otherwise complex phenomenon, on a level where details would be distracting.
In short, The Business Model Canvas is a framework used to describe how a business can create, deliver, and retain value for its clients, as well as how it can generate revenue. It is comprised of nine building blocks where the left side is the back stage and the right side is the front stage of the business. The glue that binds them together is the value proposition, the gift that we offer our customers.
From endless talks to fast iterations
The simplicity of Osterwalder’s canvas makes it possible – as with prototypes – to work with fast iterations. Working in this way, we can posit small changes to one of the building blocks and see how they affect the overall business model. 10-20 different canvases can easily be produced in an hour, in the same way that a designer would work with prototypes of new products.
When we work in a way where we swiftly, and without too much deliberation, explore the realm of the possible, we approach a definite answer much faster. The designer Tom Wijec describes the process neatly when he says:
“Prototyping is the conversation you have with your ideas.”
All problems, ideas, and potential solutions can be explained more precisely and succinctly with an image. And this is where I, as a designer, see the greatest strength of the canvas. By ‘painting’ images of the business models I can more easily understand them, convey and develop them with my team, and last but not least ensure that we all share the same understanding.
Zoom out to see the big picture
The canvas helps us see the business model as a whole, where the building blocks are connected and therefore have to work towards the same mission. That means we cannot fine-tune e.g. the sales channels without adjusting the other cogs in the system. Everything has to be seen in a bigger picture, just like I, as a designer, cannot change the material of the chair without rethinking its construction.
How we use the canvas at IS IT A BIRD
At IS IT A BIRD we use The Business Model Canvas for mapping and understanding the existing business plans of our clients, and for developing new alternatives based on qualitative fieldwork. Internally, it functions as an instrument of dialogue, providing a shared language that makes it possible to effectively convey something as complex as a business model.
Based on my experiences with the canvas and prototyping, there are three things that I suggest you keep in mind, when you set about working with business models:
- Keep in mind that prototyping should not be used to create an exact and sophisticated image of the final business model – rather it should be used to explore different alternatives.
- Share and present your early models to your co-workers so that you can get valuable feedback.
- When you present a business model, start with a blank canvas and add one building block at a time. By doing this, the story will be coherent and easily understood by your listeners.
