A business model has nine components: Customer Segment, Value Proposition, Channels, Customer Relationship, Revenue Streams, Key Resources, Key Activity, Key Partners and Cost Structure.
At InMyShoe it is especially important to do a thorough process around Value Proposition and the Customer Segment to get a good start working with the entire business model.
No matter where in the business model a company wants to innovate, innovation must be validated against the market.
It is important to understand the environment and the influence of external forces in order to adopt the business model. Osterwalder proposes to make a rough mapping of 4 areas in the surroundings:
By setting up some main hypotheses about the future within the four mentioned areas, you can get some guidelines for what a business model might look like in the future.
Regular assessment of an exsisting business model and analyse external forces from the inside out is an important management task.
By using the Blue Ocean strategy into the canvas, we can look at how changes in one part of the business model affect other parts. Blue Ocean and Osterwalder canvas can be combined by eliminating costs and reducing unnecessary elements on the left side of the canvas, while increasing supply and creating something new belongs on the right side of the canvas.