blending the blue ocean strategy framework with the business model canvas
Business Model Canvas
Value innovation
eliminate
+
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cost-side
value-side
窶田osts reduce
Blending approaches
raise
+value
=
cost implications
value creation
create
The Business Model Canvas consists of a right-hand
Blue Ocean Strategy is about simultaneously increasing
Blending Blue Ocean Strategy and the Business Model
value and customer-focused side, and a left-hand cost
value while reducing costs. This is achieved by identify-
Canvas lets you systematically analyze a business model
and infrastructure side, as descibed earlier (see p. 49).
ing which elements of the Value Proposition can be elimi-
innovation in its entirety. You can ask the Four Actions
Changing elements on the right-hand side has implica-
nated, reduced, raised, or newly created. The first goal
Framework questions (eliminate, create, reduce, raise)
tions for the left-hand side. For example, if we add to
is to lower costs by reducing or eliminating less valuable
about each business model Building Block and imme-
or eliminate parts of the Value Proposition, Channels,
features or services. The second goal is to enhance or
diately recognize implications for the other parts of the
or Customer Relationship Building Blocks, this will
create high-value features or services that do not signifi-
business model, (e.g. what are the implications for the
have immediate implications for Resources, Activities,
cantly increase the cost base.
cost side when we make changes on the value side?
Partnerships, and Costs.
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and vice versa).
6/15/10 5:44 PM