METHOD

Extended Buiness Model Canvas

Origin and purpose

The Business Model Canvas (BMC) tool by Strategyzer is very helpful for organising thoughts about your existing business or a proposed business. We greatly value it and recommend it in it’s original form.

The BMC has a place for capturing detail about Value Proposition – from a Marketplace (aka customer) perspective.

We extend the original BMC to include detail about the value proposition from a Business Owner perspective. It is good to recognise this value perspective separately, and not confuse it with customer value. It is also good to honour and understand what a single or multiple owners of a business want, in terms of value they invest in the creation and management of the business, as well as the value they want the business to create for them and those that matter to them.

Method steps

1. Compose a Business Value Exchange Ledger™ for your business.

2. Take the significant value elements from your Value Exchange Ledger™ (and if relevant, from the ledgers of other partners or business shareholders), and record these within a Business Model Canvas in a new extended area. This is an aggregrate view of the value proposition for all who are business owners or leaders.

Sample of Extended Business Model Canvas

Below is an image of the extended BMC illustrating the additional box/content for Value IN and Value Out for the Owner of a business/service. This example is for RHX Group’s product/service, Self unLimited.

A Business Model Canvas for Self unLimited showing inputs and outputs of value exchange. Inputs include ideas, time, money, and expertise; outputs include social good, impact, revenue, and reputation. It outlines key partners (ambassadors, coaches), activities (leadership R&D, teaching, advisory), resources (IP, books, professionals), value proposition (insight, learning, transformation), customer relationships and channels (website, community, social media), customer segments (individuals seeking personal and work growth), cost structure (R&D, professional fees, marketing), and revenue streams (services, courses, product sales, royalties).

Suggestion for further extension

The Extended BMC could also include a box along the bottom of the canvas (not illustrated above) to capture details about Values (beliefs, virtues) that are important to ‘bake into’ the design and operation of the business. Values thinking is one basis for shaping the culture of a venture or business.

Creative Commons License

This derivative work by RHX Group — product owner of value(x) — is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.