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How to persuade an organization to adopt the Business Model Canvas rather than use the Balanced Scorecard?
In my openion, the nine basic building blocks in the Business Model Canvas are just talking about similiar concept of the Balanced Scorecard.
For "Revenue Streams" and "Cost Structure" are expressed as the "Financial Perspective" in the Balanced Scorecard. For "Customer Relationships", "Customer Segments", "Value Propositions" and "Channels" are expressed as the "Coutomer Perspective" in the Balanced Scorecard. For "Key Activities", "Key Partners" and "Key Resources" are just talking about the "Internal Process Perspective" and the "Learning and Growth Perspective" in the Balanced Scorecard.
What's the key points to persuade an organization to adopt the Business Model Canvas rather than use the Balanced Scorecard?
Replies to This Discussion
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Permalink Reply by Praveen Singh on -
A quick hack would be to present the balanced score card first and then following it up with the same content in business model canvas.
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Permalink Reply by Mike Lachapelle on -
You may be talking about two tools here intended for two different purposes, and as such should not be seen as a "one or the other" choice. If you go back to the the strategy underlying innovation, its 5 phases of mobilization, understanding, design, implementation and management, one can separate out the use of these two tools.
The canvas is a phenomenal tool to help with the understanding and design phases during which we are concerned with building a picture of the current state and the innovations that will lead to the future state model. In existing businesses it is most likely there isn't an explicit business model from which to work, so the canvas can help build that. By using the canvas one can assess the likelihood of success and impact of changes to the business. In a new business the current state might be an analysis of the marketplace as it exists for your competitors, and the future state as your proposed business.
Once one makes the transition to implementation, either changes to an existing business or to create a new business, the canvas is not necessarily the best tool to track your efforts. That is where the balanced scorecard comes in. The BSC is a tool to track implementation of projects and measure the performance of new or ongoing work. It, in my opinion, is not a good tool for innovation. When combined with strategy maps, one can rely on the this tool to track how well you are doing at implementing a new or changing business.
Two tools; complimentary but not interchangeable. They serve two very different purposes but can be used in conjunction to drive home innovation.
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Permalink Reply by Nigelburke on -
There's an interesting comparison of the Business Model Canvas and the Balanced Scorecard in Alexander Osterwalder PhD thesis online at http://www.hec.unil.ch/aosterwa/PhD/Osterwalder_PhD_BM_Ontology.pdf - I think it's around page 45.
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Permalink Reply by Martin Fanghanel on -
The BSC is an excellent tool to track implementation of the organization strategy. The BMC serves a different purposes. I use the BMC to determine part of the business strategy (innovation) and the BSC to make sure the strategy is executed.
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