Why the Business Model Canvas is not intended for strategy - and what it is ideal for
In the world of business model innovation, the Business Model Canvas is one of the most powerful tools. But can it also serve as a framework for developing a comprehensive corporate strategy? In the latest episode of our podcast Hope is not a strategy, strategy expert Christian Underwood explores this question - providing exciting insights and practical recommendations for the proper use of this popular tool.
Business Model Canvas: A tool with a clear mission
The Business Model Canvas was developed by Alexander Osterwalder to simplify the development of business models and promote innovation. It has established itself worldwide as a framework that can do one thing above all: Create transparency and enable creative approaches for new business models. However, as Christian Underwood emphasizes, "it is not designed to shape the strategic direction of a company."
The canvas is ideal for triggering innovation, creating new perspectives and providing a clear representation of business models. But when it comes to developing a sustainable strategy for the core business, it reaches its limits.
Strategy vs. innovation: two different journeys
Christian Underwood explains why it is important to differentiate between strategy and innovation. While the Business Model Canvas is perfect for experimenting and developing new ideas, strategy work requires in-depth analysis, including situation analysis, defining goals and determining fields of action. The Business Model Canvas does not comprehensively map these elements. "It shows where you want to go, but not how to get there," explains Christian Underwood.
The right use of the canvas
Although the canvas is not suitable for strategy development, it is an invaluable tool for companies. Christian Underwood recommends using it specifically for the following purposes:
- Driving forward business model innovations: for the development of new products or business areas
- Create transparency: for a clear understanding of existing business models, especially in the case of new teams or management changes.
However, it is important not to overstretch the canvas. "Your core business needs a solid strategy based on sound analysis and clear goals," emphasizes Christian Underwood.
A clear message for strategists and innovators
🚀 Listen in now and find out how to use the Business Model Canvas correctly to successfully combine innovation and strategy!
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