Last Friday we were jamming through a product idea, and kept asking “What’s the business model?”
I can’t share that business model . . . yet, but one thing that has helped me (like grids and frameworks) is the following Business Model framework: Partners, Customer Relationships, Core Capabilities, Value Configuration, Value Proposition, Channels, Customers, Cost Structure, and Revenue Stream.
There are many different business modeling approaches. It comes from Alex Osterwalder, and he has now an updated business model framework. What I do it put the outline/framework up on a white-board and then put stickies in the appropriate places. Really gets you thinking in different ways because it is so easy to take a post-it and move it from one place to another. THAT facilities good “design-thinking” about the business model. I like using post-its better than how I understand that Alex Osterwalder and others have you “write” it on a piece of paper.
I think this is valuable exercise if you trying to start your own company, if you are consulting to one, or even if you are working or interning in a organization. It is just good sense to know how an organization works at this functional level.
Tags: business model, whiteboarding