#85 The limits of the Business Model Canvas: why it doesn't work for strategy development!
This episode was recorded in German.
Why the Business Model Canvas was never meant for strategy, and what it's perfect for
In the world of business model innovation, the Business Model Canvas is one of the most powerful tools out there. But can it also serve as a framework for developing a comprehensive corporate strategy? In the latest episode of our podcast Hope Is Not a Strategy, strategy expert Christian Underwood digs into exactly that question, with sharp insights and practical recommendations for using this popular tool the right way.
Business Model Canvas: a tool with a clear mission
Alexander Osterwalder developed the Business Model Canvas to simplify business model design and drive innovation. It has become a globally established framework that does one thing above all: create transparency and open up creative approaches to new business models. But as Christian Underwood points out, "it isn't built to shape a company's strategic direction."
The canvas is ideal for kicking off innovation, opening up new perspectives and laying out business models clearly. But when it comes to developing a lasting strategy for the core business, it hits its limits.
Strategy vs. innovation: two different journeys
Christian Underwood explains why it matters to separate strategy from innovation. While the Business Model Canvas is perfect for experiments and developing new ideas, strategy work calls for in-depth analysis, including a situation analysis, defined goals and clearly set fields of action. The Business Model Canvas doesn't cover those elements in full. "It shows where you want to go, but not how you get there," says Christian Underwood.
Using the canvas the right way
Even though the canvas isn't suited to strategy development, it's an invaluable tool for companies. Christian Underwood recommends using it deliberately for the following purposes:
- Driving business model innovation: for developing new products or business areas
- Creating transparency: for a clear understanding of existing business models, especially with new teams or changes in management.
What matters is not stretching the canvas too far. "Your core business needs a solid strategy, built on sound analysis and clear goals," Christian Underwood emphasizes.
A clear message for strategists and innovators
🚀 Listen now and find out how to use the Business Model Canvas properly to bring innovation and strategy together successfully!
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