Combining a value chain analysis with the Business Model canvas.


Today I’m talking about why resilient companies combine value chain analysis with the business model canvas.

A trend I’m seeing in successful companies are embracing collaboration.
They collaborate internally- engaging people with different perspectives, which is proving to generate the best outcomes.
AND externally with their larger ecosystem, which makes understanding your value chain and business model more critical than ever.

The value chain analysis is a handy management tool that breaks down the types of value exchanged across your ecosystem.
It helps a team visualize this exchange clearly.
The second tool is the Business Model Canvas-created by Alexander Osterwalder, of Strategyzer.
The business model canvas expands on the value chain analysis by creating a highly useful sketch of your overall business.
It helps highlight where you need to focus to grow your business, or perhaps to reimagine your business so it is more resilient.

This combination can be utilized across all three phases of business growth- whether you are focused on getting unified around your current growth plan, are innovating for the future, or have mastered continuous transformation.

Combining these two tools is always powerful.

Let’s take a closer look at the value chain analysis. I love this online interactive representation of the value chain that we offer.

Here’s how I recommend you tackle this:
Chose 3-7 people that have diverse viewpoints. You can create more than one group and compare your results in the end. And together follow these steps:
—Start with brainstorming the entities involved in your value chain.
—Use the icons and words to create visual representations. If you’ve already used our toolkit to map the stakeholders in your ecosystem, this will go pretty fast.
—Next, indicate where cash comes from and where it goes.
—Now add in other types of value you and the rest of your ecosystem offers.
1. If you are using our tool and need additional types of value not provided, you can simply duplicate an existing one and change the title and the image.
2. Take your time, there may be more value being exchanged than is apparent at first.

Based on the value map you just completed, It’s time to create your business model canvas, you’ll add more detail to create a high-level sketch. What you’re creating a shared language for describing, visualizing, assessing, and changing business models. It describes the rationale of how an organization creates, delivers, and captures value.

If for any of these you are just not ready to tackle them, there are other toolkits to help you get prepared fast. I won’t cover those today but at the end of this video, I’ll give you more information about where to go.

  1. Brainstorm ideas for each section— individually
  2. Narrow ideas as a group to the key elements for each area
  3. Agree on the final elements

It’s refreshing to have this level of clarity, the real value comes in the next steps. Too many people stop here. The value is added when you identify weak points or risk areas. Your team will individually take a few minutes to brainstorm any potential unknowns, unproven assumptions about what working in this model, potential weak points. Take your time and Consider each section in the canvas.

Finalize weak points
1. As a group remove redundancies, clarify ideas
2. Vote on the most impactful weaknesses.
3. Use arrows to connect the final weak points to the business model canvas sections they correlate to.

Don’t let this hard work get lost. It only takes another 30 minutes to create an action plan to ensure outcomes.
It’s why our customers gain momentum so quickly.

If this was helpful, check out Vision
You can build a resilient business with vision Platforms toolkits.
Bring your high-level expertise, vision, and innovation.
AND Vision Platform adds precision and velocity.