questioning your canvas with the four actions framework The combination of Blue Ocean Strategy tools and the Business Model Canvas provide
cost perspective — provide ideal starting points from which to start questioning your
a solid foundation upon which to question your business model from value creation,
business model using the Four Actions Framework. Changes to each starting point then
customer, and Cost Structure perspectives. We propose that three different perspec-
allow you to analyze impacts on other areas of the Business Model Canvas (see also
tives — the Customer Segment perspective, the Value Proposition perspective, and the
innovation epicenters on p. 138).
Cost Impact Exploration
eliminate reduce raise create
Exploring Value Proposition Impact
?
?
eliminate reduce raise create
cost-side
Exploring Customer Impact
? value-side
?
eliminate reduce raise create
cost-side
Identify the highest cost infrastructure elements and
Begin the process of transforming your Value Proposition
Ask yourself the Four Actions Framework questions
evaluate what happens if you eliminate or reduce them.
by asking the Four Actions Framework questions.
about each business model Building Block on the
What value elements disappear, and what would you
Simultaneously, consider the impact on the cost side
customer side of the Canvas: Channels, Relationships,
have to create to compensate for their absence? Then,
and evaluate what elements you need to (or could)
and Revenue Streams. Analyze what happens to the
identify infrastructure investments you may want to
change on the value side, such as Channels, Relation-
cost side if you eliminate, reduce, raise, or create value
make and analyze how much value they create.
ships, Revenue Streams, and Customer Segments.
side elements.
• Which activities, resources and partnerships have
• What less-valued features or services could be
• Which new Customer Segments could you focus
the highest costs? • What happens if you reduce or eliminate some of these cost factors? • How could you replace, using less costly elements, the value lost by reducing or eliminating expensive resources, activities, or partnerships? • What value would be created by planned new investments?
eliminated or reduced? • What features or services could be enhanced or newly created to produce a valuable new customer experience? • What are the cost implications of your changes to the Value Proposition? • How will changes to the Value Proposition affect the customer side of the model?
on, and which segments could you possibly reduce or eliminate? • What jobs do new Customer Segments really want to have done? • How do these customers prefer to be reached and what kind of relationship do they expect? • What are the cost implications of serving new Customer Segments?
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