The Business Model Canvas as a mean for feasibility studies


Elaboration, 2017
6 Pages, Grade: 2,3

Excerpt

Content

Figures and tables

1 The basic idea of the BMC

2 The building blocks of the BMC

References

Figures and tables

Figure 1: Business Model Canvas and the descriptions of the building blocks (Source: own representation after Osterwalder et al. 2010, pp. 20 – 40).

Figure 2: BMC and basic characteristics of the building blocks (Source: own representation after Osterwalder et al. 2010, pp. 20 – 40).

Figure 3: The basic questions of the BMC building blocks (Source: own representation after Osterwalder et al. 2010, pp. 20 – 40).

1 The basic idea of the BMC

The very basic definition of a business model as proposed by Osterwalder, Pigneur and Clark (2010, p. 14):

“A business model describes the rationale of how an organization creates, delivers, and captures value”.

The benefit of having a throughout understood definition of business models occurs, when everybody is talking about the upcoming business model ideas and processes everybody is beginning their ideas on the same starting point and it so assures, that concepts participants come up with are “[…] simple, relevant, and intuitively understandable, while not oversimplifying the complexities of how enterprises function.” (Osterwalder et al. 2010, p. 15).

To stress this, the authors came up with nine building blocks of a business model that can be used as a shared language to talk about all important perspectives of a business model covering the main areas of financial structure, offer, customers and infrastructure while covering strategic and procedural as well as organizational topics (Osterwalder et al. 2010, p. 15). The nine building blocks are further described in the next paragraph.

2 The building blocks of the BMC

The BMC consists of the following nine building blocks (Osterwalder et al. 2010, pp. 16 - 17):

Abbildung in dieser Leseprobe nicht enthalten

The topics are numbered on the BMC in a particular order in which they establish the idea, the business and influence each other. The order and the basic description of each building block can be seen in figure 1.

Abbildung in dieser Leseprobe nicht enthalten

However, one basic criticism about the BMC is that although it does show the interdepend-ences of neighboring blocks, it is just a static view of potential business models. It does not show how one block changes because of changes in another block. For that purpose, practi-tioners would have to reconsider every block again after making changes to one initial build-ing block and discuss these changes and occurring impacts. Osterwalder et al. propose the use of a printed version in combination with sticky notes to do so (pp. 42 – 46).

Each building block can be further analyzed by underlying characteristics or expressions which are shown non-exhaustively in figure 2.

[...]

Excerpt out of 6 pages

Details

Title
The Business Model Canvas as a mean for feasibility studies
College
University of Malta  (Edward de Bono Institute)
Course
Entrepreneurship & Business Venturing
Grade
2,3
Author
Year
2017
Pages
6
Catalog Number
V358192
ISBN (eBook)
9783668431867
File size
1003 KB
Language
English
Notes
Description of the basic structure and pattern of application of Osterwalder’s, Pigneur’s and Clark’s Business Model Canvas (BMC) as described in their 2010 published book “Business Model Generation”
Tags
Business Model Canvas, Business Model, Feasibility study, entrepreneurship
Quote paper
Felix Zappe (Author), 2017, The Business Model Canvas as a mean for feasibility studies, Munich, GRIN Verlag, https://www.grin.com/document/358192

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