The Goal is NOT a Business Model itself, but the Design of Customer Value
In a figuratively speaking of construction, an importance of the design is not the building by itself, but what kind of life and activity would be practiced there. The building is simply a box, and people who make action within that box is the protagonist; The design is, planning of the drama that happens there.
Similarly, if business model itself is to become the protagonist, it is getting the priorities wrong. By adopting that model, what drama will be created. Such design of the drama, the design of customer value, is the purpose of this business model construction.
For instance, suppose you encountered machine failure and made a call to a customer center, received polite response, immediately received the repaired one. In order to enable these operations, variety of factors such as maintenance of customer center, not just management, reserving product design and the repair parts that are easy to repair, and expediting of the repair process have to be assembled with consistency. It is natural, but the customer center cannot promise a quick repair without permission.
Taking this into account, the main pillar of the business model construction is again, value proposition for customer segmentations. All of the other components are present as to support the value.
Key activities to produce the value, when it comes to a residence for instance, are kitchen where cooking takes place and a study. You entertain with food. There, key resources for creating a value, like ingredients and know-how of cooking, are required. If activity and resource are not enough, then it's possible that you will go out to buy them. This is the key partners of the business model.
In addition, if you fail to deliver the precious value to the customers, it is meaningless. The channels for delivering the value and the customer relationships are the entrance and the drawing room where you welcome and entertain the customers.
Finally, as a foundation to support these structure, the revenue streams and the cost structure exist.
Similarly to the design of a residence, in which people spend their daily lives and there are indispensable elements to entertain the guests, these elements are essential to the design of a business model as well.
The framework and the business model canvas introduced in "Business Model Generation" are representing the nine components listed earlier.
By using this framework, mix and match the components, and to create the design with a consistency and harmony. Like home designed in this way is easy to live, the well-designed business will move smoothly with undertaking projects. Business model design is a design process of customer value using the model.
