“Business Model Generation” is an excellent introduction to the complex topic of “business models.”
The book covers business models, their creation, and further adaptation using the “Business Model Canvas.”
The book has a nice format, looks very good, and features beautiful illustrations and diagrams that clarify the subject matter.
The Canvas (the book uses the feminine form “die Canvas” in German, pp. 48-49, but I prefer to use the neuter for English terms, as does Duden, by the way), so the Canvas is explained after an introduction using several business model patterns. I found the unbundling pattern very interesting; it is didactically very sound. The other patterns, such as Long-Tail, Multi-Sided Platforms, and Freemium, are well-executed. With the “Open Business” pattern, however, the authors venture quite far out. This pattern is still very rarely applied in practice.
In the section on developing business models, techniques that are considered more standard are covered, such as customer focus, testing with prototypes, and storytelling. The inclusion of further reading is a nice touch.
I preferred the section on strategy and the long-term change and adaptation of a business model. The world doesn’t stand still; it changes, and therefore the model must be adapted accordingly. However, the treatment of “red oceans” is missing here; with the SWOT analysis, only a rudimentary technique is mentioned. It would have been better if the authors had briefly mentioned Porter’s “five forces” (or perhaps other techniques for industry structure analysis unknown to me). The techniques of value innovation and the four actions of the Blue Ocean Strategy are well-implemented in the Canvas.
The last section on the implementation or realization of business models is a brief introduction. But I don’t criticize that, as it is a very complex topic and would go beyond the scope of the book.
Overall, despite a few weaknesses, it is a recommendable reading experience.
- Alexander Osterwalder, Yves Pigeur
- Business Model Generation
- Campus-Verlag
- 2011
See also the review on Amazon.
