Supplier Innovation
Supplier Innovation Tip #1: Share your Business Models
November 2, 2015
Mark Perera
1 minute

One of the top ways of boosting supplier innovation is to educate your suppliers on your business models; it helps them quickly understand your business all the while providing a good basis to support your organisation, innovate your current business models and create new ones.

Alex Osterwalder is one of the best business thinkers out there.  I am lucky enough to have met Alex a few times and i’ve also attended one of his Business Model Canvas workshops (well worth attending if you get the chance).  The Business Model Canvas is one of the most powerful tools I carry around with me everyday.  The best thing about it?  All I need is a pen and paper to use it.

Once you start using the business model canvas I guarantee you’ll be as hooked as I am.  I bet you’ll find it a great tool for both supplier innovation and internal innovation/creation of business models.  Rather than letting me drone on about it, please check out the videos below which explain the fundamentals of the business model canvas and provide a case study.

I look forward to hearing your thoughts on how you have used it within your company to boost your supplier innovation programmes.

Below are the nine business model Building Blocks from the Business Model Canvas:

  1. Customer Segments (CS) define the different groups of people or organizations an enterprise aims to reach and serve
  2. Value Propositions (VP) describes the bundle of products and services that create value for a specific Customer Segment
  3. Channels (CH) describe how a company communicates with and reaches its Customer Segments to deliver a Value Proposition
  4. Customer Relationships (CR) describes the types of relationships a company establishes with specific Customer Segments
  5. Revenue Streams (RS) represents the cash a company generates from each Customer Segment
  6. Key Resources (KR) describes the most important assets required to make a business model work
  7. Key Partnerships (KP) describes the network of suppliers and partners that make the business model work
  8. Key Activities (KA) describes the most important things a company must do to make its business model work
  9. Cost Structure (CS) describes all costs incurred to operate a business model

Now you know the fundamentals of the business model canvas, check it out in action as Alex talks through the Nespresso business model.

If you want to find out more about how you can successfully implement the Business Model Canvas then check out Alex’s online course.

Mark has 20 years experience building and delivering high value enterprise solutions to help large corporates work smarter. He previously founded Procurement Leaders which services the most influential buying community in the world.
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