THE STRATEGIC

BUSINESS MODEL
CANVAS
STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING
 THE STRATEGIC BUSINESS MODEL CANVAS
DESCRIBES THE CORRELATIONS BETWEEN
THE COMPONENTS OF OUR STRATEGY

A JOURNEY FROM
OUR CURRENT [TRANSIENT] COMPETITIVE ADVANTAGE
TOWARDS THE STRATEGIC DESTINATION, WHERE
OUR NEW [TRANSIENT] COMPETITIVE ADVANTAGE
WILL BECOME EFFECTIVE

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Economic Results
NEXT
Competitive Advantage

CURRENT
Competitive Advantage
Strategic Destination
B
∆ Resources
Allocation Strategic Destination
A

Time
The STRATEGIC TENSION between the focus on
the CURRENT and the NEXT Competitive Advantages

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 STRATEGIC GOALS

STRATEGIC CHOICES
(Value Proposition)

THE STRATEGIC
BUSINESS MODEL

CAPABILITIES SYSTEM

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 THE STRATEGIC [CORPORATE] GOALS
ARE THE QUANTIFIERS OF OUR STRATEGY’S SUCCES
ALONG THE STRATEGIC HORIZON

THEY ARE QUANTIFIED WINNING ASPIRATIONS

AND THE ROOTS OF OUR TARGETS TREEE

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability

STRATEGIC CHOICES
(Value Proposition)

CAPABILITIES SYSTEM

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 THE STRATEGIC CHOICES DEFINE
OUR STRATEGIC POSITIONING AND OUR VALUE PROPOSITION

THEY ARE GROUPED IN TWO BUILDING BLOCKS:

• CF COMPETITIVE FACTORS (HOW-TO-WIN)
• MB MARKET BOUNDARIES (WHERE-TO-PLAY)

EACH MAJOR PRODUCT/SERVICE LINE OF A COMPANY

REQUIRES A SPECIFIC STRATEGIC CHOICES MIX (CF +
MB),
BECAUSE THE STRATEGIC POSITIONING MAY BE
DIFFERENT FOR EACH PRODUCT/SERVICE LINE.

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)
A. Improving Products & Processes F. Improving Market Targeting
B. Focusing on the Customer Experience G. Focusing on Customer Convenience
C. Extending the Transaction Control H. Extending the Market Integration
D. Leveraging Complementors / Unique Advantages I. Leveraging Corporate Resources
E. Creating Disruption / New Value J. Creating New Markets

CAPABILITIES SYSTEM

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 THE CAPABILITIES SYSTEM
REPRESENTS THE ESSENTIAL CAPABILITIES
REQUIRED TO SUPPORT OUR STRATEGIC POSITIONING

THERE ARE 10 CORE CAPABILITIES BUILDING BLOCKS.

THEIR COMPONENTS ARE CORRELATED WITH
THE STRATEGIC CHOICES THAT THEY ARE SUPPORTING

ON THE NEXT SLIDE ARE THE BUILDING BLOCKS

OF THE STRATEGIC BUSINESS MODEL CANVAS

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)
A. Improving Products & Processes F. Improving Market Targeting
B. Focusing on the Customer Experience G. Focusing on Customer Convenience
C. Extending the Transaction Control H. Extending the Market Integration
D. Leveraging Complementors / Unique Advantages I. Leveraging Corporate Resources
E. Creating Disruption / New Value J. Creating New Markets

KP Key Partners CH Sales Channels CR Customer Relationships

The Required Partners and Suppliers The Go-To-Market Channels The Customer Experience

KA Key Activities MS Management Systems TI Tools & Instruments

The Instrumentation and

The Core Processes The Methods and Procedures
Information Systems

OR Organization & Resources KI Knowledge & Information

The Core Infrastructure and Special Business Units The Technology Know-how and Market Databases

CS Competences & Skills AB Attitudes & Behaviors

The Professional Expertise and Qualifications The Leadership, Collaborative and Innovation Culture

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 THE STRATEGIC GOALS ARE ACCOMPLISHED
AS A RESULT OF SUCCESSFULLY CHANGING
THE CURRENT STRATEGIC POSITIONING
INTO THE NEW STRATEGIC POSITIONING,
WHICH IS DEFINED FOR OUR STRATEGIC DESTINATION

THIS CAN BE DONE ONLY BY DEVELOPING OR ENHANCING

THE REQUIRED SET OF SUPPORTING CAPABILITIES

SO, WE MOVE FROM A CURRENT STRATEGIC BUSINESS MODEL

TO A NEW STRATEGIC BUSINESS MODEL, WHICH WILL BECOME
FULLY EFFECTIVE AT OUR STRATEGIC DESTINATION

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)

THE 2 STRATEGIC CHOICES BUILDING BLOCKS OF THE STRATEGIC POSITIONING

TODAY STRATEGIC DESTINATION TODAY STRATEGIC DESTINATION

KP Key Partners CH Sales Channels CR Customer Relationships

KA Key Activities MS Management Systems TI Tools & Instruments

EXISTING REQUIRED
THE 10 CAPABILITIES SYSTEM BUILDING BLOCKS, SUPPORTING THE STRATEGIC POSITIONING
OR Organization & Resources KI Knowledge & Information

CS Competences & Skills AB Attitudes & Behaviors

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 THE 12 BUILDING BLOCKS
OF THE STRATEGIC BUSINESS MODEL CANVAS:
• 2 STRATEGIC CHOICES BUILDING BLOCKS
• 10 CAPABILITIES SYSTEM BUILDING BLOCKS

INSIDE EACH STRATEGIC CHOICES BUILDING BLOCK

THERE ARE 10 CHOICE ITEMS, GROUPED IN 5 POSITIONS.
INSIDE EACH CAPABILITIES SYSTEM BUILDING BLOCK
THERE ARE 5-10 CAPABILITY ITEMS
(CAPABILITIES OR CAPABILITY COMPONENTS)

THE NEXT SLIDE PRESENTS THE DEFAULT CAPABILITY ITEMS.

YOU SHOULD CUSTOMIZE THEM TO YOU SPECIFICS!

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)
 A1 Lowest Cost  A2 Product Differentiation  F1 Market Segmentation  F2 Market Edges (High/Long-queue)
 B1 Customer Intimacy  B2 Customer Added Value  G1 Proximity Markets  G2 Customer Re-definition
 C1 Exclusive Channel  C2 Dominant Exchange  H1 Value Chain Integration  H2 Adjacent Markets
 D1 Proprietary Standard  D2 Unique Resources / Capabilities  I1 New/Substitute Markets  I2 New Geographies
 E1 Disruptive Innovation  E2 Conceptual Innovation  J1 Trend/Future Markets  J2 Market Re-definition

KP Key Partners CH Sales Channels CR Customer Relationships

 KP1 Supplier Intimacy / Alternate Suppliers
 KP2 High-end Market & Specialty Suppliers
 KP3 R&D and Industry Expertise Partners
 KP4 Advanced / New Technology Suppliers
 KP5 Value-added & Partners Eco-system
 CH1 Low-cost / Outsourced Sales Channels
 CH2 Specialized / Expert Sales Channels
 CH3 Direct Pre-Sales & Sales Channels
 CH4 Retail & Customer-Proximity Channels
 CH5 Indirect Channels / Franchise System
 CR1 Low Cost /Outsourced Customer Support
 CR2 Dedicated / Expert Customer Support
 CR3 Customer Advocacy / Co-creation
 CR4 Automated / Web Customer Support
 CR5 Partners & Sales Channels Support

KA Key Activities MS Management Systems TI Tools & Instruments

 KA1 Backward /Forward Integration
 KA2 Outsourcing Management
 KA3 Product Portfolio Management
 KA4 Innovation, R&D, Prototyping
 KA5 Retail / Category Management/Logistics
 MS1 SCM System, Outsourcing System
 MS2 Partner Management System
 MS3 Innovation Management System
 MS4 Operational Performance Mgmt. System
 MS5 Quality Assurance System
 TI1 Cost-Control System / ERP
 TI2 CRM & Trouble-Ticket System
 TI3 Sales Force Automation
 TI4 Sales & Ops. Planning System
 TI5 JIT/Retail / Logistics /WMS System

OR Organization & Resources KI Knowledge & Information

 OR1 Low-Cost Workforce  OR2 Product Testing Facilities  KI1 New Advanced Technologies  KI2 Customer Job-to-be-Done
 OR3 Customer Support Center  OR4 MIS & Web Presence  KI3 Production Formulas /Recipes  KI4 Market Demographics/Behaviors
 OR5 Direct Delivery Infrastructure  OR6 Customer -Proximity Locations  KI5 Process BPM Best Practices  KI5 Product/Service Value Curve
 OR7 Logistics and WH Facilities  OR8 Comms. & Netw. Infrastructure  KI7 Specific Equipment Specs  KI8 Competitive Intelligence

CS Competences & Skills AB Attitudes & Behaviors

 CS1 Continuous Improvement  CS2 Acquisition & Retention  AB1 Leadership & Coaching  AB2 Teamwork problem-solving
 CS3 Solution & Consultative Selling  CS4 Logistics and Order Fulfillment  AB3 Customer-Focus  AB4 Performance-Focus
 CS5 Retail Category Management  CS5 Tender Bid Management  AB5 Procedures Adherence  AB6 Reversed Accountability
 CS7 Innovation & Creativity  CS7 Project Portfolio Management  AB7 Creativity Enablement  AB8 Delegation & Succession

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 EACH STRATEGIC CHOICE REQUIRES
FULLY DEVELOPED AND MATURE SUPPORTING CAPABILITIES.
SEE TWO EXAMPLE ON THE NEXT SLIDES.

COMPARE THE EXISTING CAPABILITIES

WITH THE CAPABILITIES REQUIRED
TO SUPPORT THE STRATEGIC CHOICES
OF THE NEW STRATEGIC BUSINESS MODEL.

THE COMPARISON WILL COMPLETE THE PICTURE

OF THE STRATEGIC GAPS THAT HAVE TO BE CLOSED
THROUGH THE DEVELOPMENT & EXECUTION
OF THE ANNUAL STRATEGIC PLANS.
STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING
 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)
 A1 Lowest Cost  A2 Product Differentiation  F1 Market Segmentation  F2 Market Edges (High/Long-queue)
 B1 Customer Intimacy  B2 Customer Added Value  G1 Proximity Markets  G2 Customer Re-definition
 C1 Exclusive Channel  C2 Dominant Exchange  H1 Value Chain Integration  H2 Adjacent Markets
 D1 Proprietary Standard  D2 Unique Resources / Capabilities  I1 New/Substitute Markets  I2 New Geographies
 E1 Disruptive Innovation  E2 Conceptual Innovation  J1 Trend/Future Markets  J2 Market Re-definition

KP Key Partners CH Sales Channels CR Customer Relationships

 KP1 Supplier Intimacy / Alternate Suppliers
 KP2 High-end Market & Specialty Suppliers
 KP3 R&D and Industry Expertise Partners
 KP4 Advanced / New Technology Suppliers
 KP5 Value-added & Partners Eco-system
 CH1 Low-cost / Outsourced Sales Channels
 CH2 Specialized / Expert Sales Channels
 CH3 Direct Pre-Sales & Sales Channels
 CH4 Retail & Customer-Proximity Channels
 CH5 Indirect Channels / Franchise System
 CR1 Low Cost /Outsourced Customer Support
 CR2 Dedicated / Expert Customer Support
 CR3 Customer Advocacy / Co-creation
 CR4 Automated / Web Customer Support
 CR5 Partners & Sales Channels Support

KA Key Activities MS Management Systems TI Tools & Instruments

 KA1 Backward /Forward Integration
 KA2 Outsourcing Management
 KA3 Product Portfolio Management
 KA4 Innovation, R&D, Prototyping
 KA5 Retail / Category Management/Logistics
 MS1 SCM System, Outsourcing System
 MS2 Partner Management System
 MS3 Innovation Management System
 MS4 Operational Performance Mgmt. System
 MS5 Quality Assurance System
 TI1 Cost-Control System / ERP
 TI2 CRM & Trouble-Ticket System
 TI3 Sales Force Automation
 TI4 Sales & Ops. Planning System
 TI5 JIT/Retail / Logistics /WMS System

OR Organization & Resources KI Knowledge & Information

 OR1 Low-Cost Workforce  OR2 Product Testing Facilities  KI1 New Advanced Technologies  KI2 Customer Job-to-be-Done
 OR3 Customer Support Center  OR4 MIS & Web Presence  KI3 Production Formulas /Recipes  KI4 Market Demographics/Behaviors
 OR5 Direct Delivery Infrastructure  OR6 Customer -Proximity Locations  KI5 Process BPM Best Practices  KI5 Product/Service Value Curve
 OR7 Logistics and WH Facilities  OR8 Comms. & Netw. Infrastructure  KI7 Specific Equipment Specs  KI8 Competitive Intelligence

CS Competences & Skills AB Attitudes & Behaviors

 CS1 Continuous Improvement  CS2 Acquisition & Retention  AB1 Leadership & Coaching  AB2 Teamwork problem-solving
 CS3 Solution & Consultative Selling  CS4 Logistics and Order Fulfillment  AB3 Customer-Focus  AB4 Performance-Focus
 CS5 Retail Category Management  CS5 Tender Bid Management  AB5 Procedures Adherence  AB6 Reversed Accountability
 CS7 Innovation & Creativity  CS7 Project Portfolio Management  AB7 Creativity Enablement  AB8 Delegation & Succession

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 Growth Profitability Sustainability
CF Competitive Factors (how-to-win) MB Market Boundaries (where-to-play)
 A1 Lowest Cost  A2 Product Differentiation  F1 Market Segmentation  F2 Market Edges (High/Long-queue)
 B1 Customer Intimacy  B2 Customer Added Value  G1 Proximity Markets  G2 Customer Redefinition
 C1 Exclusive Channel  C2 Dominant Exchange  H1 Value Chain Integration  H2 Adjacent Markets
 D1 Proprietary Standard  D2 Unique Resources / Capabilities  I1 New/Substitute Markets  I2 New Geographies
 E1 Disruptive Innovation  E2 Conceptual Innovation  J1 Trend/Future Markets  J2 Market Redefinition

KP Key Partners CH Sales Channels CR Customer Relationships

 KP1 Supplier Intimacy / Alternate Suppliers
 KP2 High-end Market & Specialty Suppliers
 KP3 R&D and Industry Expertise Partners
 KP4 Advanced / New Technology Suppliers
 KP5 Value-added & Partners Eco-system
 CH1 Low-cost / Outsourced Sales Channels
 CH2 Specialized / Expert Sales Channels
 CH3 Direct Pre-Sales & Sales Channels
 CH4 Retail & Customer-Proximity Channels
 CH5 Indirect Channels / Franchise System
 CR1 Low Cost /Outsourced Customer Support
 CR2 Dedicated / Expert Customer Support
 CR3 Customer Advocacy / Co-creation
 CR4 Automated / Web Customer Support
 CR5 Partners & Sales Channels Support

KA Key Activities MS Management Systems TI Tools & Instruments

 KA1 Backward /Forward Integration
 KA2 Outsourcing Management
 KA3 Product Portfolio Management
 KA4 Innovation, R&D, Prototyping
 KA5 Retail / Category Management/Logistics
 MS1 SCM System, Outsourcing System
 MS2 Partner Management System
 MS3 Innovation Management System
 MS4 Strategy & Performance Mgmt. System
 MS5 Quality Assurance System
 TI1 Cost-Control System / ERP
 TI2 CRM & Trouble-Ticket System
 TI3 Sales Force Automation
 TI4 Sales & Ops. Planning System
 TI5 JIT/Retail / Logistics /WMS System

OR Organization & Resources KI Knowledge & Information

 OR1 Low-Cost Workforce  OR2 Product Testing Facilities  KI1 New Advanced Technologies  KI2 Customer Job-to-be-Done
 OR3 Customer Support Center  OR4 MIS & Web Presence  KI3 Production Formulas /Recipes  KI4 Market Demographics/Behaviors
 OR5 Direct Delivery Infrastructure  OR6 Customer -Proximity Locations  KI5 Process BPM Best Practices  KI5 Product/Service Value Curve
 OR7 Logistics and WH Facilities  OR8 Comms. & Netw. Infrastructure  KI7 Specific Equipment Specs  KI8 Competitive Intelligence

CS Competences & Skills AB Attitudes & Behaviors

 CS1 Continuous Improvement  CS2 Acquisition & Retention  AB1 Leadership & Coaching  AB2 Teamwork problem-solving
 CS3 Solution & Consultative Selling  CS4 Logistics and Order Fulfillment  AB3 Customer-Focus  AB4 Performance-Focus
 CS5 Retail Category Management  CS5 Tender Bid Management  AB5 Procedures Adherence  AB6 Reversed Accountability
 CS7 Innovation & Creativity  CS7 Project Portfolio Management  AB7 Creativity Enablement  AB8 Delegation & Succession

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 SOURCE REFERENCE:

PLAYING TO WIN – ROGER MARTIN, A.G. LAFLEY

THE DELTA MODEL – ARNOLDO C. HAX
BLUE OCEAN STRATEGY – W. CHAN KIM, RENEE MAUBORGNE
THE INNOVATOR’S DILEMMA – CLAYTON CHRISTENSEN
GOOD STRATEGY / BAD STRATEGY – RICHARD RUMELT
THE ESSENTIAL ADVANTAGE – PAUL LEINWAND, CESARE MAINARDI
COMPETITIVE ADVANTAGE – MICHAEL PORTER
BUSINESS MODEL GENERATION – ALEXANDER OSTERWALDER
THE END OF COMPETITIVE ADVANTAGE – RITA GUNTHER McGRATH

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING

 FOR A COPY OF THIS SLIDE PACK AND FOR FURTHER DETAILS ON
DEFINING THE NEW STRATEGIC BUSINESS MODEL
DETERMINING THE STRATEGIC GAPS, REQUIRED FOR
THE STRATEGIC PLAN DEVELOPMENT & EXECUTION

E-MAIL:
MIONESCU@STRATEGSYS.COM

STRATEGIC BUSINESS MODEL CANVAS V3.0 © 2014-2017 STRATEGIC SYSTEMS CONSULTING