Summary of Alexander Osterwalder & Yves Pigneur's Business Model Generation

Please note: This is a companion version & not the original book. Book Preview:

#1 A business model describes the rationale behind how an organization creates, delivers, and captures value. It is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems.

#2 Customers are the heart of any business model. A company must make a decision about which segments to serve and which to ignore. Once this decision is made, a business model can be designed around a strong understanding of specific customer needs.

#3 Business models differentiate between market segments with slightly different needs and problems. For example, a bank's retail arm may serve a large group of customers with assets of up to $100,000, while a smaller group of affluent clients has a net worth of more than $500,000.

#4 An organization with a diversified customer business model serves two unrelated Customer Segments with very different needs and problems. For example, in 2006 Amazon. com began selling cloud computing services.

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