Business Model Canvas Replaces Traditional Business Plans

WHITE PLAINS, New York, February 10, 2015 /PRNewswire/ --

The Business Model Canvas is rapidly being adopted worldwide. In a study conducted jointly by Strategyzer and Business Models Inc., the main reason identified for the adoption of the Business Model Canvas is that it provides a common language for strategy and innovation, thus optimising strategic discussions and ideas. And this is one reason why corporates such as Nestlé, Proctor & Gamble, Mastercard and universities Berkeley, Stanford and IMD have already embraced this approach. With the sale of 1 million books and over 5 million downloads, the Business Model Canvas has won unprecedented popularity all over the world.  

According to the co-author of Business Model Generation, Alex Osterwalder, there is a growing need on the part of innovation managers, CEOs and start-ups to rapidly change their business models: "Companies must quickly switch and immediately be able to test whether assumptions and new business models work in practice."

Participants in the study indicated that the Business Model Canvas is often applied in 14 different ways. For example, not only does it facilitate strategic planning, but also helps to understand competition, supports innovation, helps to make better decisions on start-up investments, and merger and acquisitions.

Strategyzer surveyed over 1300 users of the Business Model Canvas and interviewed 35 companies from Fortune 500 and the FT Global 500. The research was conducted across various sectors including telecommunications, healthcare, manufacturing, IT and financial services. The result shows that 36% of participants use the Business Model Canvas to develop a new business; 21% of participants use the software to develop new products and services within existing organisations; and 15% use the software to renovate their existing business models. The methodology can be widely applied.

According to co-author Yves Pigneur, these are also the reasons why his book, Business Model Generation, has become a 'global phenomenon' and become an internationally recognised standard: "We came up with a model that is perceived as feasible and challenging. That is more effective and challenging than bulky strategy plans."

Strategyzer.com specializes in building business tools to design, test, and manage value propositions and business models. Strategyzer has already published the global best-selling books Business Model Generation and Value Proposition Design.

Business Models Inc. is an international consultancy for strategy and design. The consultancy helps start-ups and organisation to innovate their business models and design strategies for the future.

Note for the editor  

For more information: 

See the full research report here:  http://blog.strategyzer.com/posts/2015/2/9/why-and-how-organizations-around-the-world-apply-the-business-model-canvas

SOURCE Business Models Inc.