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Business Model Generation: A Handbook for Visionaries, Game Changers

Business Model Generation: A Handbook for Visionaries, Game Changers PDF

Author: Alexander Osterwalder and Yves Pigneur

Publisher: John Wiley and Sons


Publish Date: July 13, 2010

ISBN-10: 9780470876411

Pages: 288

File Type: EPub

Language: English

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Book Preface

Def_Business Model

A business model describes the rationale of how an organization creates, delivers, and captures value

The starting point for any good discussion, meeting, or workshop on business model innovation should be a shared understanding of what a business model actually is. We need a business model concept that everybody understands: one that facilitates description and discussion. We need to start from the same point and talk about the same thing. The challenge is that the concept must be simple, relevant, and intuitively understandable, while not oversimplifying the complexities of how enterprises function.

In the following pages we offer a concept that allows you to describe and think through the business model of your organization, your competitors, or any other enterprise. This concept has been applied and tested around the world and is already used in organizations such as IBM, Ericsson, Deloitte, the Public Works and Government Services of Canada, and many more.

This concept can become a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives. Without such a shared language it is difficult to systematically challenge assumptions about one’s business model and innovate successfully.

We believe a business model can best be described through nine basic building blocks that show the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure, and financial viability. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems

Table of Contents

The book is divided into five sections: The Business Model Canvas, a tool for describing, analyzing, and designing business models, Business Model Patterns, based on concepts from leading business thinkers, Techniques to help you design business models, Re-interpreting strategy through the business model lens, and A generic process to help you design innovative business models, tying together all the concepts, techniques, and tools in Business Model Generation. The last section offers an outlook on five business model topics for future exploration. Finally, the afterword provides a peek into “the making of” Business Model Generation.


Definition of a Business Model

The 9 Building Blocks

The Business Model Canvas


Unbundling Business Models

The Long Tail

Multi-Sided Platforms

FREE as a Business Model

Open Business Models


Customer Insights


Visual Thinking





Business Model Environment

Evaluating Business Models

Business Model Perspective on Blue Ocean Strategy

Managing Multiple Business Models


Business Model Design Process




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