“Business Model New Generation” by Alexander Osterwalder and Yves Pigneur

“Business Model New Generation” is a book written by Alexander Osterwalder and Yves Pigneur that provides a framework for creating, designing, and analyzing business models. The authors introduce the Business Model Canvas, a visual tool that helps organizations understand and communicate their business model. The book also covers various business model patterns and strategies for creating value for customers, revenue streams, and key partners. Additionally, the authors provide guidance on how to test and validate business models through experimentation and customer feedback. Overall, the book aims to provide a practical guide for entrepreneurs, managers, and other business professionals to develop and improve their business models.

The 10 key recommandations

1. The first key recommendation from “Business Model New Generation” is to use the Business Model Canvas as a tool to visualize and iterate on a business model. The Business Model Canvas is a visual template that helps entrepreneurs and product managers map out the key elements of a business model, including the value proposition, customer segments, channels, revenue streams, and cost structure.
2. Another key recommendation is to focus on creating a unique value proposition. The book emphasizes that a business must have a unique value proposition in order to stand out in the market and attract customers. An example of this would be a company that offers a subscription service for organic produce delivery, which differentiates them from other grocery delivery services.
3. The book also stresses the importance of understanding customer segments and tailoring the value proposition to specific segments. For example, a company that sells eco-friendly cleaning products may target the segment of consumers who are environmentally conscious and willing to pay more for sustainable products.
4. Another key recommendation is to design efficient and effective distribution channels to reach customers. For example, a company that sells a new type of reusable straw may choose to sell them through their website, as well as through eco-friendly and zero waste stores.
5. The book also stresses the importance of identifying and testing multiple revenue streams. An example of this would be a company that offers a free basic version of their software, but charges for premium features.
6. Another key recommendation is to minimize fixed costs and optimize variable costs. This can be achieved by outsourcing certain functions, or by using a pay-per-use pricing model.
7. The book also emphasizes the importance of building partnerships and networks to create new opportunities. For example, a company that sells natural skincare products may partner with a spa or beauty salon to offer their products to customers.
8. Another key recommendation is to use data and analytics to continuously improve the business model. For example, a company can track customer engagement and purchase data to understand which products are most popular and make adjustments accordingly.
9. The book also stresses the importance of creating a culture of experimentation and iteration. This can be achieved by setting up small, rapid-fire experiments to test new ideas and quickly pivot if they are not working.
10. The final key recommendation is to stay open to new opportunities and be willing to adapt and change the business model as needed. This can be achieved by constantly monitoring the market and customer needs, and being willing to pivot or pivot quickly if necessary.

Steps to create a business model

According to “Business Model New Generation” by Alexander Osterwalder and Yves Pigneur, the steps to create a consistent business model are:

1. Define the value proposition: Understand the unique value that your product or service offers to customers and how it solves their problems or meets their needs.
2. Identify the target customer segments: Identify the specific groups of customers that will benefit from your value proposition.
3. Define the channels: Determine the best ways to reach and communicate with your target customer segments.
4. Determine the customer relationships: Decide how you will interact with your customers, whether it be through personal assistance, self-service, or a community.
5. Define the revenue streams: Identify the ways in which your business will generate revenue, such as through sales, subscriptions, or fees.
6. Determine the key resources: Identify the resources, such as people, equipment, or technology, that are necessary to deliver your value proposition.
7. Define the key activities: Identify the activities that are necessary to deliver your value proposition, such as product development, marketing, or customer service.
8. Determine the key partners: Identify the partners, such as suppliers or distributors, that are necessary to deliver your value proposition.
9. Define the cost structure: Identify the costs associated with delivering your value proposition and generating revenue.
10. Align the business model elements: Ensure that all elements of the business model work together and are aligned to achieve desired business outcomes.

Alexander Osterwalder and Yves Pigneur

Alexander Osterwalder is a Swiss business theorist, management consultant, and author. He is best known for his work on business model innovation and the development of the Business Model Canvas, a visual tool that helps companies to understand, design, and plan their business models.

Yves Pigneur is a Belgian business theorist and management consultant. He is best known for his work on business model innovation and the development of the Business Model Canvas, a visual tool that helps companies to understand, design, and plan their business models. He is the co-author of the book “Business Model Generation” with Alexander Osterwalder.