Feb 212012

iPad canvas exampleFeasibility Exploration uses the Business Model Canvas as a framework to explore the viability of a potential new business or product. The core of a Feasibility Exploration is formed by 3 major activities:

  1. Mapping: often this means articulating and thinking through concepts of which parts have been discussed for some while;
  2. Quantification: initial market sizing, estimation of revenue streams and costs to serve;
  3. Review: does it make business sense? What should we do next? Who needs to decide what?

The outcome is an initial view on whether a particular service or product is viable. It is usually used to take a decision on whether it is worthwhile to invest in further development of the product or service.

It is not a detailed plan or risk review; these are drawn up at a later stage of development.

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Feb 212012
Business Model Canvas sketch

The Business Model Canvas

Entrepreneurs starting a new venture need to answer a basic question: what is your business model, how will you earn money? Answering this question requires a framework for describing a business. A good recent definition of a business model is a description of “how an organization creates, delivers and captures value” (Osterwalder & Pigneur). An organization can be a single entity or a collection of entities working together to deliver a product or service that creates value for a customer.

The Business Model Canvas is a convenient visual framework for talking about a business model. It is a poster format chart that enables 9 elements of a business model to be captured and discussed by a group of people working together. The nine elements are visualised in the cartoon at the right. Continue reading »