How to apply? The Osterwald model consists of nine blocks and requires filling in a special table for each of them. The construction is preceded by extensive analytical work.
In this article:
Who is Alexander Osterwalder
Description of the Osterwalder model
Preparing to Build Osterwalder's Business Model
9 Blocks of Osterwalder's email lists uk Business Model
Examples of the construction of the Osterwalder model by global companies
How to Avoid Mistakes When Building the Osterwalder Model
Frequently Asked Questions about the Osterwalder Model
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Who is Alexander Osterwalder
Alexander Osterwalder was born in 1974 in St. Gallen (Switzerland). He gained worldwide recognition thanks to his fundamental theoretical research in the field of business modeling, which was the result of many years of hard work.
Education:
2000 - received a Master's degree in Political Science;
2004 – defended his doctoral dissertation on the use of information systems in management.
Who is Alexander Osterwalder
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Professional activity:
1999 – organized his first project in the field of financial literacy “Netfinance.ch”;
2000-2001 – wrote articles for the Swiss business magazine BILANZ;
2006 - launched the site.com;
2010 – founded the consulting firm Strategyzer;
2015 – received the Thinkers50 Strategy Award for his achievements in developing strategic thinking in business;
2017 - ranked 7th among the most authoritative business theorists in the world.
Scientific works:
"Building Business Models".
"Developing a Value Proposition."
"Testing business ideas."
"Invincible Company"
"Highly Effective Tools for Teams."
Osterwalder is best known as the creator of the Business Model Canvas, also known as the Alexander Osterwalder Business Model Canvas.
Many of the researcher's colleagues, including his mentor, Yves Pigneur, took part in the development of this system.
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Description of the Osterwalder model
Successful operation of a company becomes possible with the presence of a business model. This is a special scheme with the help of which the assessment of available resources, identification of strengths and forecasting of growth prospects are carried out.
It provides insight into how value is created for the target audience and how it contributes to profitability.
The methodology for constructing business models proposed by Alexander Osterwalder in collaboration with Yves Pigneur in the book “Constructing Business Models: A Handbook for the Strategist and Innovator” has become widely used.
In 2015, the authors won the Thinkers 50 Strategy Award for creating “a business model that helps new companies put their strategy into action.”
In Western practice, this model is called the Business Model Canvas. In our country, it can be called "Canvas", "Layout" and "Template". The Osterwalder and Pigneur business model is a description of the company's key business processes using blocks. As a result, you can get a detailed description of the business, including the products sold, target customers, intermediaries, spending areas, and sources of profit.
Description of the Osterwalder model
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The model is used for strategic management. According to Osterwalder, when using it, companies can create optimal value propositions taking into account the state of the industry. It allows you to find problem areas, focus on the most promising areas, conduct market analysis and adopt successful solutions.
The model is described by nine blocks that form a single business space.
The huge interest in this method is connected with its minimalism. A standard business plan most often includes cumbersome tables and calculations. The new approach assumes the absence of unnecessary elements, but, despite this, it forms a clear idea of the most important business processes of the company and their interdependence.
It is important to note that creating such a model is not difficult if you use ready-made templates. It is not necessary to have expert knowledge and skills. The method can be used at any enterprise, regardless of the industry.
At the same time, it should be taken into account that the formed Osterwalder model is not suitable for accurate forecasting of the project efficiency and detailed assessment of all processes. Here you can only get a general idea of the state of the business. Subsequent planning is carried out on the basis of the blocks of this model, based on specific indicators. Thus, modules related to work with clients are the basis of the sales plan, and blocks on expenses and resources are the basis of the financial plan.