There are a lot of players in any given business market.  All dealing with many moving parts.  Things both seen and unseen. Things In and out of their control . All are seeking that edge.  Looking for an advantage.  Sometimes hitting on it. Sometimes missing.  There is a consistent edge you can count on.

There is a small group of people whom, I believe, have unlocked that consistent small edge for us.  I am very familiar with this  space, having used the same basic tools for decades.  The elegance of this simple model evolved from more complex ontological work.  The essence of a business model resulted.  The  simplicity of such a universal model is what makes it so powerful.  Perhaps the most powerful tool I have ever used. Sparking a burst of creative thinking around using it to quickly resolve many business issues.  A subject for future posts.

This Swiss army knife of business tools is the business model.  As a business architect, business modeling is something I know very well. Or thought I did.  Now everything I know has a portal where it can surface in-context.  Making every business discussion now go right to the heart of the issue.  This simplified, universal model makes it easy to explore ideas while staying in context of the real-world business domains.  Every business decision could do with a quick walk-through of the model.

This is the short cut to getting it right. In addition it provides a new way of talking with business people. A fluid, powerful language structured to communicate business. Using it with my clients in this way has brought clear, self-directed action.  Moving naturally through areas that must be considered to make the thought actionable in their business.

The rigor of the model comes from needing a base business model in support of a business modeling tool.  Something more accessible and creativity supportive than current ontology tools like Protégé.  Taxonomy and ontology have been the brilliance behind many business advances for a long time; that will continue.  What is needed are tools incorporating some of this understanding that are available to everyone.  I hope this emerges as language for thinking about business.  Allowing an exchange of ideas; true collaboration.  Due to this work, specific terms for the domains of business now exist; along with the association between those terms. Yes, a light taxonomy of business. The beauty is in everyone being able to identify with them.  Envisioning impacts across business domains without restricting the creative process during creative sessions.

The revolution is accessibility to these transformational business tools. Being able to improve the business, to intend a better profit model.  A model is a simplified view of a more complex system.  The purpose of using a model is the ease of apprehending the interplay of elements that are difficult or impossible at full scale.  Having a business model that can be easily understood and communicated is of incredible value.

To better understand this, let’s take a look at the model. This is my own version of their model.  Why I slightly evolved it will be left for a future post.  One thing I did not tinker with is the set of terms. It is important that everyone agree on a basic model.   At this level, some flexibility has to be allowed; such as using different names.  But the model itself must evolve gently by those presiding over it.  Otherwise we risk losing the collaborative value that comes from more a universal understanding.  I also know better than to tamper with the brilliant thinking of those I have learned from.

The model covers 9 business domains, spanning 4 perspectives.

The 4 Perspectives are:

Client
Product/Service
Activity
Financial

The 9 Business Model Domains:

Funding (Cost Model)
Key Resources
Partner Network
Key Activities
Value Proposition (Offer)
Client Segments
Client Relationships
Distribution Channels
Revenue Model

An examples of how this model is used.

Going through the model in your mind, as you express your point of view to another.  Your ability to consider the wider business perspectives gives you a strong advantage.

• Interviewing a firm to partner with you (PARTNER NETWORK).   I see your firm working with our Marketing Department (Key Resources) on our New Accounts Acquisition.  (Key Activities).  Our need is to enhance our New Account Offerings (Value Proposition / Offer).  Here is how I see us both profiting from this partnership (Funding Mode).

There will be more posts on integrating this thinking into various business tools and concepts;

Click here to dip into the source Alex Osterwalder on the business model tool