BCG Developing a Business Model and Value Proposition

This article briefly explains the use of a business model as well as how you should plan to create one and what should be addressed within it, including the value proposition.  It approaches the business model as having two parts, the value proposition (including targeting customers, product or service offering, as well as revenue plan) and the operation model (including value chain, cost model, and organization). The value proposition answers the question, “What are we offering to whom?” On the other hand, the operation model answers, “How do we profitably deliver the offering?” These two parts are explained in great detail throughout this manuscript, including through the use of graphics. However, this article’s approach to business canvas modelling is different than Forza’s, which is neither right nor wrong, so be wary of confusing the two different approaches.


Learning Outcomes

  • Read pp. 2-4 to learn why business model innovation is relevant today
  • Read pp. 4-5 to learn ways to develop a new business model
  • Read pp. 5-7 to learn about what can go wrong in developing a new business model
  • Read pp. 7-9 to answer questions regarding your own business’s model