Leonardo DaVinci said “simplicity is the ultimate form of sophistication.” Some of the most influential minds of the modern era including Steve Jobs, believed in the power of simplicity and how it can catalyze change. The disruption caused by Airbnb or Uber, is an example of how simple concepts can radically transform industries. Furthermore, a well-defined and easily comprehensible strategy is likely to fetch far higher company valuation compared to a loosely integrated and marginally defensible one.
Companies often grapple with complexities of developing innovative strategies that could challenge the status quo in some cases and/or risk time and opportunity trying out models that may or may not fit. Strategy can be intimidating.
The Business Model Canvas or BMC is a simple, yet effective visual strategy tool that organizations big and small use for business model innovation and testing a wide range of hypothesis in different environments. For management teams and consultants advising companies on strategic planning and capital raising I would recommend using BMC as a mandatory framework for reference. Experience and creativity are key in extracting incrementally more value from any business tool and the same logic applies to the BMC. However, to gain a baseline appreciation of this framework, lets examine two first-hand scenarios of its real-world application.