Business Model: Create, Deliver, and Capture Value

It was with the previous statement that Joseph Schumpeter defined entrepreneurship in 1949, and although more than seven decades have passed, the concept remains relevant. We live in a world where information circulates at an astonishing speed, and consumers are increasingly demanding. Business plans are essential tools for companies, but no business can succeed if it moves directly from idea/opportunity definition to the business plan. Any idea must be tested; otherwise, it remains merely a hypothesis, increasing the risk of business failure.

Professor Steve Blank, one of the ‘fathers’ of the Customer Development methodology that laid the foundations for the Lean Startup movement, stated that “no business plan survives first contact with a customer (…) while plans are static, business models are fully dynamic.” It is at this point that the concept of a business model becomes meaningful, as Alex Osterwalder and Yves Pigneur noted: “a business model defines how a company creates, delivers, and captures value.”

At its core, a business model aims to define how the viability and sustainability of a business idea are ensured. Only by defining the business model can we design strategies for the future.

There are many design thinking tools that help us work on business models, the most well-known being the Business Model Canvas (BMC), created by Alex Osterwalder and available on his platform www.strategyzer.com.

And your business model— is it disruptive?

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