The Business Model Canvas (BMC) is a popular tool that helps businesses visualize and design their business models. But most companies only use it as a checklist — fill in the nine boxes, tick them off, move on — which limits it to a fraction of what it can actually do.
I’ve watched plenty of teams make this exact mistake: they complete the Canvas, treat it as done, and never realize how much more the tool is capable of.
In March 2023, I had the opportunity to team up with Strategyzer’s top innovation thinkers to deliver the “Corporate Innovation in Action” two-day conference in Melbourne, in collaboration with Melbourne-based companies Vibrance Partners and Naked Ambitions.
Together, we explored how companies can use the BMC not just to describe a business, but to actively innovate — managing multiple portfolios of business models and building an ecosystem of innovation around them. Here’s what I took away from that conference, alongside what I’ve learned applying the same approach with clients since.
BMC as a tool for innovation
The Business Model Canvas (BMC) is not just a tool for documenting your existing business model. It can also be a powerful tool for innovation, allowing you to invent new business models or improve existing ones. By using the BMC as a tool for innovation, you can identify strengths, weaknesses, threats, and opportunities in your business model. This can help you to develop new ideas and strategies that can take your business to the next level.
One way to use the BMC as a tool for innovation is to identify areas of your business model that are underperforming or could be improved. For example, you may identify a new customer segment that you could target or a new revenue stream that you could develop.
By examining each of the nine components of the BMC, you can identify areas where your business model may be weak or where there may be opportunities for improvement.
In addition to identifying areas for improvement, the BMC can also be used to assess the risk of a new business model. The four types of risk that should be considered when assessing a new business model are desirability, feasibility, viability, and adaptability. The BMC can help you to assess each of these risks and determine whether your new business model is likely to succeed.
Another way to use the BMC as a tool for innovation is as a competitive analysis tool. By examining the BMCs of your competitors, you can identify areas where they are strong or weak and use this information to develop strategies that will give you a competitive advantage.
As you can see, the BMC is a powerful tool for innovation that can help you to invent new business models, improve existing ones, and assess the risks of new business models. By using the BMC as a tool for innovation, you can stay ahead of the competition and take your business to new heights.
Managing multiple portfolios of business models
As businesses grow and evolve, it’s not uncommon to have multiple business models operating simultaneously. However, managing these different models can be challenging without the right tools. This is where the Business Model Canvas (BMC) comes in.
When used in conjunction with the Strategyzer Portfolio Map, the BMC can help businesses manage their different business models more effectively. As the owner and founder of Strategyzer, Alexander Osterwalder recommends using both tools to manage multiple portfolios of business models.
The portfolio map provides a visual representation of a company’s different business models, allowing for easy comparison and analysis. It also helps businesses identify potential gaps or overlaps in their portfolios, and prioritize investments accordingly. By using the portfolio map, companies can ensure that they are allocating their resources effectively and maximizing their ROI.
In addition to the portfolio map, the BMC can be used to document and analyze each individual business model. By having a clear understanding of each model’s value proposition, revenue streams, cost structure, and other key components, businesses can make informed decisions about each model’s future.
For example, a business might use the BMC to evaluate whether a particular business model is worth continuing or should be discontinued. Alternatively, the BMC could be used to identify opportunities for improvement within a particular model, such as optimizing the cost structure or identifying new revenue streams.
Ultimately, by using the BMC in conjunction with the portfolio map, businesses can manage their multiple portfolios of business models more effectively and make more informed decisions about their future.
Creating an Ecosystem of Innovation
Imagine yourself as the “mayor” of a city. As the mayor, your job is to create an environment that encourages innovation and growth. You need to attract new businesses, create job opportunities, and build infrastructure that supports the needs of the community.
In much the same way, companies can use the Business Model Canvas (BMC) to create an ecosystem of innovation that supports their growth and success.
During the “Corporate Innovation in Action” conference in Melbourne in March 2023, Greg Bernarda from Strategyzer spoke about the importance of creating an ecosystem of innovation.
According to Bernarda, an ecosystem of innovation is a network of individuals, organizations, and resources that work together to generate new ideas and bring them to market. It’s an environment where innovation can flourish.
The BMC can be a powerful tool for creating an ecosystem of innovation. By mapping out the different components of your business model, you can identify areas where innovation is needed. You can then work with your team to brainstorm new ideas and develop strategies for bringing those ideas to market.
But the BMC doesn’t just help you generate new ideas. It also helps you identify the resources you need to make those ideas a reality. You can use the BMC to map out your partnerships, suppliers, and other stakeholders. By identifying the key players in your ecosystem, you can work with them to create a network that supports innovation and growth.
Creating an ecosystem of innovation takes time and effort. It requires a willingness to take risks, experiment with new ideas, and build relationships with key stakeholders. But with the BMC as your guide, you can create a roadmap for success. By working with your team and your network of partners and stakeholders, you can build an environment where innovation can thrive.
Creating an ecosystem of innovation is key to the success of any business. The Business Model Canvas is a powerful tool for achieving this goal. By mapping out your business model and identifying areas where innovation is needed, you can work with your team and your network of partners to create an environment where innovation can flourish. So go ahead and be the “mayor” of your own ecosystem of innovation and watch your business grow and thrive.
Conclusion
The Business Model Canvas is a powerful tool — but only if you use it as one. Treated as a living document rather than a checklist, it becomes a way to spot where innovation is actually needed, manage more than one business model at once, and build the kind of ecosystem that keeps generating new ideas instead of just documenting old ones.
If you’re interested in going deeper on any of this — using the BMC as a genuine innovation tool rather than a form to fill out — get in touch with Accolade Coaching. We work with organizations to put frameworks like this into practice, not just explain them.
