blending the blue ocean strategy framework
with the business model canvas
Business Model Canvas
228
+ –costs
cost-side value-side
The Business Model Canvas consists of a right-hand
value and customer-focused side, and a left-hand cost
and infrastructure side, as descibed earlier (see p. 49).
Changing elements on the right-hand side has implica-
tions for the left-hand side. For example, if we add to
or eliminate parts of the Value Proposition, Channels,
or Customer Relationship Building Blocks, this will
have immediate implications for Resources, Activities,
Partnerships, and Costs.
bmgen_final.indd 228
Value innovation
eliminate raise
+value
reduce create
Blue Ocean Strategy is about simultaneously increasing
value while reducing costs. This is achieved by identify-
ing which elements of the Value Proposition can be elimi-
nated, reduced, raised, or newly created. The first goal
is to lower costs by reducing or eliminating less valuable
features or services. The second goal is to enhance or
create high-value features or services that do not signifi-
cantly increase the cost base.
Blending approaches
= cost value
implications creation
Blending Blue Ocean Strategy and the Business Model
Canvas lets you systematically analyze a business model
innovation in its entirety. You can ask the Four Actions
Framework questions (eliminate, create, reduce, raise)
about each business model Building Block and imme-
diately recognize implications for the other parts of the
business model, (e.g. what are the implications for the
cost side when we make changes on the value side?
and vice versa).
6/15/10 5:44 PM