Business model Canvas – Identifying a strategic plan and transformation initiatives

By | 08/11/2020

Introduction

The business canvas model sets out a structure of 9 viewpoints to identify strategic plans and transformation initiatives.  Its useful for start-ups to identify what they need going forward and for the annual planning of initiatives at company or department level.  It acts as a blueprint so decisions can be made on how to make improved changes aligned with strategic thinking.

Approach

The technique is normally used by going through the model below with executives and jotting down brief answers to each of the key viewpoints.  It might be necessary to do more than one business canvas model.  If looking at transformation change it could be worth doing an “as is” model and a “to be” model.  Viewing the differences between the “as is” and “to be” will help highlight what initiatives are required.

Further outcomes

The business canvas model once completed will lead to further planning exercises to deliver on the strategic views uncovered.  Examples could be if new key partners have been identified to deliver on the value proposition, new key activities, changes required to customer relationships, new customers, new skill sets for key resources etc.  Any strategic gaps will lead to new initiatives.

Populating the Business Canvas model

There is not a predefined order for filling out the boxes below, but I have numbered them based on previous experience in terms of what was found the easiest to accomplish the best outcomes.

I have populated below using an example from “The Business Analysis Handbook” by Helen Winter.  It is based on a fictional company called Dream phones which is used throughout the book as a case study.

Business canvas model (Strategyzer.com), Example taken from The Business Analysis Handbook, Helen Winter, 2017

  1. Value propositions (What is the value adding activities?)

This sets out the purpose and value adding activities for the company or department.  It could identify new services or products and look at how their customers or organisations needs can be met or what they want to be known for.  The emphasis is noting down what adds value as this should be the main focus.

  1. Customer segments (What are the different types of customers?)

Understanding and knowing your customers will help to populate this.  They could be internal to the organisation not just external.  Understanding the customer segments will help to identify whether all the value propositions have been captured.  It will also help to identify any new initiatives required to capture new markets or improve existing ones.

  1. Channels (What are the communication channels for reaching the customers?)

This is how you want to reach each of your customers and the mediums to do so.  Examples could be though digital medium, phone, partners, shopping outlets etc.  New initiatives may stem from any new channels identified or improvements.

  1. Customer relationships (What type of relationships do you want to have with your customers?)

The types of relationship could include how often you want to interact with each of your customers and how you might want to form those relationships.  New initiatives may lead to changes to how you interact with your customer and what is required to achieve the relationships.

  1. Key activities (What are the key activities based on the value propositions identified?)

This is a list of the key activities to achieve the value propositions.  Once the blueprint for this is identified any new or required improved key activities can be planned.

  1. Key resources (What are the key resources needed to support the value propositions?)

This is a list of the key resources to achieve the value propositions.  Key resources could include people, systems, buildings and equipment.  Reviewing these once agreed can help identify resources needed to support and any capability gaps to be closed.

  1. Key partners (Who are the key partners required to support the value propositions?)

This provides visibility of the key partners required for the value propositions identified.  Partners may be required to deliver some of these particularly if key internal resources are not available.

  1. Revenue streams (What are the types of revenue streams and pricing strategies?)

Revenue streams might be from sales, services provided, commission, fees, licenses etc.  Decisions can then be made as to any changes or new revenue streams.

  1. Cost structure (What are the types of costs?)

The types of costs to achieve the value propositions are then to be identified.  They could be fixed or variable, one off or re-occurring.  They could be costs relating to people, buildings, technology, services etc.

Summary

The business canvas model is a key tool for identifying what the desired outcome is by asking key strategic questions which then act as a blueprint for initiatives to be identified.

Thoughts? Questions? Please share in the comments.

If you have found this article useful then you might like my book – The Business Analysis Handbook – Techniques and Questions for better Business Outcomes.  The book is available from www.koganpage.com and all major print and e-book retailers.

Author: Helen Winter

An Management Consultant responsible for structuring programmes, success criteria, mobilisation, management of scope, budget, timely delivery, benefits realisation and stakeholder satisfaction. Helen has led on large transformation programmes to execute delivery along with strategic business outcomes. Helen is also a global business author with publisher Kogan Page where her first book “The Business Analysis Handbook” was a finalist for 2 major industry awards. One was for contribution to project management literature with PMI and the other was the Specialist book category for the business books awards. She is an active member of the APM programme management group. She is currently involved in a focus group sharing examples of good programme management practice and is an established speaker for project management forums. In her free time, she loves sharing her knowledge on her blog BusinessBullet.co.uk which is followed by over 5000 visitors a month.

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