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«Creating a Business Model» — is a handbook for strategists, idea generators and innovators who want to reject outdated business models and create the companies of the future.

Topic

Business, entrepreneurship, management, innovation.

About the book

Success does not come out of nowhere: it is the result of hard work, the right strategy, and, as Osterwalder and Pigneault show, an innovative business model. A successful business model has made LEGO the leader in the toy market, Google the world's most popular search engine and online advertising platform, and Skype the largest international voice communications operator. And these are not isolated examples of those who have succeeded. They are united by their revolutionary business models, fresh ideas, innovation, ability to change the rules of the game and take risks.

In addition to motivating examples, this book also provides step-by-step instructions on how to create a revolutionary business model, develop a Canvas, implement innovations, get into the blue ocean, and look both big and local.

«Creating a Business Model» — is a practical guide for strategists, those who are ready to change the rules of the game, as well as for daredevils who want to challenge outdated business models.

Who is the book for

The book will become an indispensable tool for entrepreneurs, businessmen, and those who are just starting their own business. Be sure to use this guide if you have an entrepreneurial spirit, are constantly thinking about how to make money by creating value and building new businesses, or how to improve or transform your organisation if you are trying to find innovative ways of doing business.

Why this book

The book will save you time reading dozens of publications, as it contains the most progressive ideas and the latest tools. It is distinguished from traditional business literature by its unique design and maximum visualisation.

About the authors

Alexander Osterwalder is an author, speaker and consultant on innovative business models. His practical approach to designing innovative business models, developed with Dr Yves Pinier, is used by diverse companies around the world, including 3M, Ericsson, Capgemini, Deloitte, Telenor, and others. Previously, he helped build and sell a strategy consulting firm, helped found a global non-profit organisation fighting HIV/AIDS and malaria (based in Thailand), and conducted research at the University of Lausanne.

Yves Pinier has been a professor of information systems management at the University of Lausanne since 1984. He is a visiting professor at the University of Georgia in Atlanta and the University of British Columbia in Vancouver. He has been an active participant in many research projects related to the creation of information systems, development of technical specifications, management of information technology, innovation and Internet business.

Citations

About the value proposition

"The value proposition is the reason why people turn to one company and prefer it to another. It solves a certain problem of a consumer or satisfies a need. Each value proposition consists of a selected package of products and/or services that helps to meet the requirements of a particular customer segment. In this sense, a value proposition is a set of benefits that a company offers to its customers."

About customer segments

"Customers are the core of any business model. No company can survive for long without (profitable) customers. To better satisfy customers, a company can divide them into separate segments with the same needs, common behavioural traits, or other characteristics. A business model can define one or more large or small customer segments. The organisation must make a conscious decision about which segments it will serve and which segments it will ignore. Once this has been decided, the business model should be carefully developed with a clear understanding of the specific needs of the customers."

About customer relations

"At the time of the emergence of mobile communications, for example, operators' relationships with customers were driven by aggressive customer acquisition strategies, including even free distribution of mobile phones. When the market became saturated, operators shifted their focus to retaining customers and increasing the average revenue per customer. The customer relationship, as defined by the company's business model, has a significant impact on the overall user experience."

About key activities

"Every business model requires many key activities. These are the most important actions that a company must take to operate successfully. Like key resources, they are needed to create and present your value proposition, enter markets with it, offer it to customers, maintain communication with them, and generate revenue. Like key resources, key activities can be distinguished depending on the type of business model.

For Microsoft, a software manufacturer, the key activities are related to software development. For Dell, a personal computer manufacturer, the key activities include supply chain management. For McKinsey, the key activities are related to problem solving."