Since its publication in 2010, the book "Business Model Generation" has been translated into more than 30 languages and has been used as a standard by start-ups around the world. Many schools have also adopted the business model diagram proposed in the book ( Business Model Canvas) as a teaching tool for case analysis. Through the business model map, we can indeed quickly get an overview of the business model, which is convenient for communication, discussion, and continuous tracking and updating. However, it is a pity that if we just fill in the business model map and plan to start a business, we are likely to find : This tool doesn't seem to be of much help.
I don't mean to say that business model diagrams are worthless. Using this tool is definitely more practical than writing a business plan that no one will read a second time. But for start-ups, there are a few reasons why this tool is "not scratching the itch." Why is this so? The first reason is that many people make some common mistakes when filling out the business model diagram. If these mistakes can be avoided, the power of this tool can be better utilized.
What are the common mistakes made when using business model diagrams?
1. Not clearly understanding the definition
This is the most basic mistake. For example, the Value Proposition of Programmer Inn refers to what "value" we provide, not the products and services we provide.
2. The description is not clear enough
The description must be more clear when filling in, it will be more meaningful. When filling out the value proposition, if we write "provide an excellent buying experience", what kind of experience is it? Can the experience be subdivided into several elements? When filling in the Customer Segmentation, can the demographics of the segment be more clearly defined or what are the special behaviors of these segments? When filling in the cost or benefit fields, can you roughly estimate the proportion of each element and the calculation method?
3. Not thinking clearly about what is fact and what is hypothesis
When planning a new business, most of the elements on the business model map are "hypothetical" and "planned", not observed facts. It is easy to develop wrong answers based on wrong assumptions. Therefore, in addition to updating the business model diagram from time to time, it is also necessary to confirm whether these assumptions are true and whether they have passed the market test. For example, the value proposition we mentioned, does the target audience really think this is valuable? Is there really a need for this? Are there any monetization sources that aren't actually feasible, or are the bases of calculations that need to be updated?
4. Fill in the business model diagram and it’s over
After filling out the picture, we are just about to start! Think about how your peers do it? Are there alternatives to each element? When a new development trend is found in the market, how should the business model respond? From time to time to discuss, update, in order to play its value.
5. Defects in the business model diagram
For a mature company, we can use the business model diagram to analyze its advantages and disadvantages; however, for people who want to start a business, the business model diagram does have some flaws and cannot help us properly plan a new business.
1. In the business model diagram, there is no definition of what problem to solve.
The relevant field to compare is the value proposition, however this is still two things: the value proposition is the solution we propose, not the problem we solve. I believe everyone agrees that it is very important to correctly define the problem.
For example, during a brainstorming session, we wanted to come up with a solution to the problem of "high school students fill in their voluntary assignments only based on grades, but have no concept of majors and career development". However, after discussion, it may be found that this is actually a "phenomenon" rather than a problem. The underlying problem may be insufficient relevant information, or the parent's concept is incorrect... Wait, there is a lot of room for discussion. However, if the problem to be solved is not clearly defined, how do we determine which products or services to provide? How to develop a business model?
2. The value proposition is not the same as the product and can be easily misunderstood.
It was mentioned in the previous paragraph that this is a mistake that many people make, but this is also a poor design of the business model diagram, because there are no fields used to describe the product or service we provide. When we want to offer a certain value proposition, what products or services do we need to offer to convey that value? This is a question that must be thought through. Talking about the value proposition without the product or service becomes too broad, like having a goal but not explaining how to get there. The same value proposition may also be more attractive and successful because we offer a different product or service.
Airbnb有很明确的价值主张：向超过190个国家的当地人租住独一无二的家。Couchsurfing的价值主张可能相差无几，但产品/服务完全不同。
3.没有关于竞争环境的描述或分析。
如果完全没有考虑竞业，会发生什么事？我们很可能写出一个没有优势、没有差异的商业模式。如果完全跟别人一样，要拿什么去竞争？为什么消费者要选择我们？而我们建立的竞争障碍又是什么，怎么保护我们辛苦打下的江山？《获利世代》书中其实也提到，我们可以搭配其他工具来分析竞业，但这样也显示了商业模式图有其不足之处，以及竞争分析的重要性。
新创公司如何规划商业模式？
《获利世代》作者可能也发现商业模式图不足之处，所以最近出了一本新书Value Proposition Design；书中提供了一个工具，针对价值主张跟目标客层两个内存块，再深入区分成几个元素进行探讨。使用商业模式图，搭配书中所提出的价值主张图
（Value Proposition Canvas）后，可以更清楚地定义产品与服务，以及试图解决的问题。可以到他们的官网看更多的介绍。
此外，《Running Lean》的作者Ash Maurya为了提供新创事业一个更好用的工具，他把商业模式图的几个元素替换掉，发明了Lean Canvas这个工具，试图解决上段所提的几个缺陷。Lean Canvas长这样：
Lean Canvas by Ash Maurya，CC Attribution-Share Alike 3.0 Unported license.
其中新加入的元素分别是：
问题（Problem）：要解决什么问题？
解决方案（Solution）：提供什么解决方案？这个解决方案有什么特色？
关键指标（Key Metrics）：依照公司的发展目标，定义出重要的衡量指标。
竞争优势、进入障碍（Unfair Advantage）：是什么让竞争者很难复制？虽然刚开始创业时还无法建立这个部分，但是随着事业渐渐发展，这一块的重要性将与日俱增。
The above does not mean that which tool is necessarily the best. If you can better understand the advantages and disadvantages of each tool and the applicable situation, you can maximize the benefits. I hope that the two tools, Value Proposition Canvas and Lean Canvas, briefly introduced above, can help you when planning your new business.