Business Model as an Improvement Tool

Business Model as an Improvement Tool

The business model is one of the most important business elements around which everything else will be built. A simple but important part of entrepreneurial tasks is to develop the business model of their businesses.

It is something that can easily in one picture explain how a business creates value and distributes and communicate that value with their customers.

This week I spend my time with a client to redesign the business model of their business. In this process, we used a technique called business model canvas described in one of the best books about models – Business Model Generation – A Handbook for Visionaries, Game Changers, and Challengers.

Here I want to share some of our findings in this process:

  • There is a possibility of seven more value propositions that can be implemented in the new model.
  • We have brainstormed one additional channel.
  • We find four additional customer segments that can be satisfied with the new model.
  • We find one additional key activity.
  • We find one additional key partner.
  • We find even five additional possible income streams.

Today the business is orienting on a transactional relationship that means when customers buy something, they have gone from the business point of view for the next soon purchases. In the new model, we look forward to finding additional income streams that will be more on a recurring basis.

If in the next period of time, the entrepreneur succeeds in the implementation of the new model, he can build much stronger relationships with their customers and much stronger revenue streams that will guarantee future business wealth.

Because of that I always approach the process of business improvement and organizational changes through design and redesign of the basic business model. On the other hand, it is something that can present me in a clear way all sources of organizational changes. When I know the sources of organizational change, the whole change process is much easier.

Think about your business, answer as much as you can questions that draw the possible models and you can find endless possibilities of business improvements.