The point of using Business Model Canvas
At Ergomania, we use Business Model Canvas primarily when we want to create an effective business plan without having to produce 30 pages of concise professional text. Its aim is not to replace either any quick concepts or thoroughly detailed, long-term business plans for banks and investors.
The most important part is the so-called value proposition, clarifying what problem we solve for clients, what needs we intend to meet. The original Business Model Canvas is publicly available under creative commons license at strategyzer.com. Using the Canvas interface, we develop and analyze nine parts of the business plan as follows:
- Partner: the one who helps you
- Activity: what are you doing
- Value creation: how you help
- Client service: how you contact people
- Clients: who you help
- Resource: who you are and what you have
- Channels: how you are known and how you deliver
- Cost: what you spend
- Revenue: what you earn
The Business Model Canvas presented here can be downloaded from the Ergomania’s site in editable pdf format.
Creating a Business Model Canvas at Ergomania
Based on many years of experience at Ergomania, we worked with a modified version of the Business Model Canvas, better matching the Service dominant logic and Service Management models.
Although somewhat different from the original, the principle is the same. The fields are a bit different, and as a result, the filling logic has changed because it does matter whether we focus on creating something or creating value together with the client.
In this way, the focus depends on the approach. This is how “value creation” came to the fore in our version. Business Model Canvas is used for all our clients in the most appropriate way, i.e., we either use our own modified version or the original, or a version that proves to be optimal for the given client.
One of our favorite tools is Lego® Serious Play®, which is real Lego play, but for adults: the Lego models built by the participants serve as a basis for problem solving and help you make decisions.
The main methods of using Business Model Canvas
At Ergomania, we pay special attention to the order in which the Canvas is completed, as the thinking process always starts from the client and it is worth following the order of the numbers.
- Client / target group / partner: we determine who may be receptive to the product or service provided by our clients.
- Value of client and value proposition: what would the target audience see as real value from our client’s services.
- Client relations, channels, interactions and collaboration: (in the original it is listed as #4) through what channels and how the collaboration and interaction between our clients and their target audience can be supported?
- Our most important activity is value creation: it is in the middle of the whole canvas and practically means the mission of our clients because value creation can only be realized with the active participation of the client.
- Key resources: what do our clients need to be able to perform the activities listed under unit 3 so that the values listed under unit 2 could be realized?
- Key partners: who are our clients’ key partners and what roles do they fulfill?
- Involvement of resources and partners: how our clients coordinate multi-player value creation, how they utilize and develop partners and resources, and how the target audience can utilize all of this?
- Income/revenue structure: (in the original it is listed as #5) this is where the revenue sources and metrics go.
- Cost structure: Here we rethink all aspects related to the expenses of the business model, the additional costs, etc. Should be done from both the service provider’s and the target audience’s view.
What do our clients gain by using Business Model Canvas?
As part of our all-day workshop, we will develop our clients’ own Business Model Canvas, which will result in a workable business model.
What is the role of our clients in drawing Business Model Canvas?
Our clients have an important role to play in creating Business Model Canvas, as they need to share with us a wealth of sensitive business, marketing and communication information considered strictly confidential thus not made available for outsiders.
It is important to point out that if the business concept is not properly recorded, we would be working on a concept that will not work optimally, create value or become profitable!
The result of successful use of the Business Model Canvas
Business Model Canvas is an extremely concise, comprehensive, and above all, proven business model that can be used successfully by any business because it covers all nine elements of the business discussed above, thus showing the connections between them.
- Information from client: Sharing preliminary business expectations and research
- Client cooperation: Providing participants
- Deliverables: Business model canvas focusing on value creation