Bz Model Canvas - Strategy (Chap 4)

Extracted from
Business Model Generation
written by
Alexander Osterwalder & Yves Pigneur

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 This next section is about re-interpreting strategy
through the lens of the Business Model Canvas. This will help
you constructively question established business models and
strategically examine the environment in which your own
business model functions.

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 This next section is about re-interpreting strategy
through the lens of the Business Model Canvas. This will help
you constructively question established business models and
strategically examine the environment in which your own
business model functions.

Read
on
your
own

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 business model environment:
context, design drivers, and constraints
• Understanding of the environment (the design space) is
key to building competitive business model
– The context, design drivers and constraints
• Need to do environmental scanning to monitor changes
by analyzing the external forces that influence business
model
– Market, industry forces, key trends & macroeconomic forces
• This understanding may enable you to shape &
transform, setting new standards to the environment in
your favor – creating your own scenario and “blue
ocean”

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• We can never know exactly the
future
• Understanding the environment
will inform us of the “Design Space”
so that we can prepare to adapt
business model
• Painting pictures of the future
makes it much easier to generate
competitive business models.
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 This next section is about re-interpreting strategy
through the lens of the Business Model Canvas. This will help
you constructively question established business models and
strategically examine the environment in which your own
business model functions.

Semester 2-2016-17 INFO 4504 Technopreneurship 25

 This next section is about re-interpreting strategy
through the lens of the Business Model Canvas. This will help
you constructively question established business models and
strategically examine the environment in which your own
business model functions.

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 Blue Ocean vs Red Ocean Strategy

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 Blue ocean strategy
• a potent method for questioning Value Propositions and
business models and exploring new Customer Segments.
• Blue Ocean Strategy is about creating completely new
industries through fundamental differentiation as opposed
to competing in existing industries by tweaking established
models.
• This means increasing value for customers by creating new
benefits and services, while simultaneously reducing costs by
eliminating less valuable features or services – called Value
Innovation.
• Discuss how AirAsia, Apple Iphone and the likes do it?

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 Blue ocean strategy
• Use Four Actions Framework to help create Value innovation
– 1. Which of the factors that the industry takes for granted should be
eliminated?
– 2. Which factors should be reduced well below the industry standard?
– 3. Which factors should be raised well above the industry standard?
– 4. Which factors should be created that the industry has never offered?

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 Blue ocean strategy
• In addition to value innovation, Kim and
Mauborgne (the author of Blue Ocean
Strategy) propose exploring non-
customer groups to create Blue Oceans
and tap untouched markets.
– How does AirAsia/Apple do it?
– How can IIUM do this?

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 Blending BOS with BMC:
Cirque de Soleil

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 Traditional Circus Business Model
Star Performers
Animal Care
Animal shows

Aisle concession sales Focus on Family

Multiple show arenas

Fun & Humor

Star Performers

Animals

Costly Star Performers Fees

Costly Animal Maintenance

Aisle concession sales

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 Blending BOS with BMC

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 New Business Model

=
+

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 Generating Alternative Bz Models
Via Epicenters of Business Model Innovation

56
 This next section is about re-interpreting strategy
through the lens of the Business Model Canvas. This will help
you constructively question established business models and
strategically examine the environment in which your own
business model functions.

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