This post orginally appeared here on OPEN Forum Idea Hub.
It’s nearly impossible to go a week without some news of a disruptive business model threatening to shake up the market: Facebook becoming your bank, Facebook offering movie rental, Google becoming a travel agent, etc.
As Alexander Osterwalder and Yves Pigneur write in their crowed-sourced book Business Model Generation: “Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries.”
A business model describes the rationale of how an organization creates, delivers, and captures value. And a disruptive business model is one where a non-traditional industry player enters the mix and threatens to disrupt the status quo.
It took 9 years of research and practice 4,000-plus writing hours, 28,456 Post-it notes, 77 forum discussions, 287 Skype calls, 1360 comments, and 137,757 online views for over 470 contributors from nearly 50 countries to arrive at these nine elements of any business model and arrange them into the visual “Business Model Canvas” you see at the bottom of this column. Whenever you’re pitching a new idea, you can use these nine elements to add a level of discipline and forethought to your creativity. Here are the nine, along with a few questions to ask for each element.