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14.06.2015
Think of a business model as a drawing that shows all the flows between the different parts of your company's strategy.
Alexander Osterwalder's Business Model canvas puts all the complicated strategies of your business in one simple diagram. So to answer to my students question, I pointed out that the author of the article had too narrow a definition of what a pivot meant.


Take a look at the Unicorn club and think about the changes in customer segments, revenue, pricing, channels, all those companies have made since they began: Facebook, LinkedIn - new customer segments, Meraki - new revenue models, new customer segments, Yelp - product pivot, etc.
Unlike an organization chart, which is a diagram of how job positions and functions of a company are related, a business model diagrams how a company makes money - without having to go into the complex details of all its strategy, processes, units, rules, hierarchies, workflows, and systems. If you went back and analyzed how many Unicorns pivoted on any of the 9 business model components you'd likely find that the majority did so.






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