Business Model Generation describes how to use a business model as a tool instead of a theory. The five main sections guide you through the business model know-how. This book is a practical book, plug and play. If you just start reading, even if you never heard before about business models, you will have some sort of understanding about business models. The build up of the sections and the use of popular examples accomplish this.
First chapter explains the Business model canvas. The canvas is used to explain all factors in the business model that makes it a success. Indeed after a good understanding you will be able to talk about business model much easier. A shared language therefore is the main goal of this chapter. The definition of a business model in this book is: A Business model describes the rationale of how an organization creates, delivers, and captures value.
Starting to read this chapter you will notice that some of the blocks and explanations are not SD-logic based, like the following definition; “The Value Propositions building blocks describes the bundle of products and services that create value for a specific customer segment” (p.22.). On the other hand they already talk about co-creation in this first chapter and that is for an Imagineer a comfortable landmark.
The first chapter is closed with an example of the business model of Apple. Off course a well-known example, in this case a good way to explain it even more.
Chapter Patterns is interesting. They describe 5 different types of business models. Now you really get a feeling about the importance of understanding and talking about business models. Unbundled models, Long tail, Multi-sided platforms, Free as a business model, and Open Business models. Especially the last three models are in the Imagineering way of thinking. It is not all new, but you will have some “aha” moments. It will be a tool to explain your principal how to earn money with an Imagineering based business model.
The design chapter can be amazing for people that never have been in touch with creative techniques. For imagineers I believe it is nothing very new and complementary. They describe Story telling, Scenarios, Visual thinking, Customer insights, and Ideation. Main principle of this chapter is that business model generation is about designing. “Business people need to become designers.” Especially in the thesis phase of our master, you need to remind yourself once in a time about this principle. You need to take in account lots of different factors. In my opinion the emotional and the “fingerspitzengefuhl” is also very important and is one of the ingredients of a designer. In the book they describe that we need some tools for making a design attitude possible. I that sense I agree that it can be useful for non-creative people and to evoke positive and creative thinking.
Strategy gives you the opportunity to place your business model into the real world and context. Now you can exam and review your business model. In this section they describe the Blue Ocean Strategy and mention the ambidextrous organization. In my opinion this section is a bit obvious material, not really in line with the rest of the book.
It becomes more logical starting with the last chapter Process. They provide you with a good described model / process to design a business model. The five phases are; Mobilize, Understand, Design, Implement, and Manage. Each phase is described and complete with the recommended techniques you can use. If you read this through you will see it is very common with the Imagineering Roadmap. Mobileze; assabeling a Mars-team, Understand is Inspiration researching the environment and understand your clients, and so on.
Conclusion
I will use this book in my application company for two reasons. One is that it gives me a sort of guide together with the Imagineering Roadmap to lead the process to a new and sustainable business model. Second reason is that it is a highly visual and nice designed book. The book is very attractive to graph and go true for the people in my application company. It will give them a feeling with business models.
On the other hand, it is for imagineers not very new and complementary. The theories are not new and even sometimes based on GD-Logic. The description of the modern business models are useful to get an extra feeling with them.
Should you read it? Not necessarily. Are you working with business models or designing one, yes you should. But the theory is not that refreshing and deep.
Should you buy it? Yes, it is a very nice book to show and read. It is well designed and a piece of art on itself. If you receive the book at home, you will have a good feeling. The feeling of the quality of the cover and the paper and the satisfying feeling that you have the book and be member of Osterwalder, the business model Guru!
http://www.businessmodelgeneration.com/
http://www.businessmodelalchemist.com/
http://ch.linkedin.com/in/osterwalder
