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The followinginapplies
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Corporation #1 strategy
• The Strategyzer logo should always fully appear on any slide that
contains our illustrations and/or content.

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“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not
to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition
Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the

@AlexOsterwalder Strategyzer logo.

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blog.strategyzer.com strategyzer.com
2

confidence ...
 0%

-10% 2014
-20%

-30%

-40%

-50%

-60%
Hardware
-70% Revenue %

-80%
Change
2016
-90%

-100%
2014 2015 2016

surprise !!!

products, tech,
business models &
… but there’s another
value propositions
phenomenon
expire like yogurt
in a fridge
8
 … but then there’s those who
are practically invincible

9 10

“You cannot invent and pioneer if

you cannot accept failure.”
x
x
$12 x
vs
billion
— @jeffbezos
$4.5
$8
billion
$3 billion
billion
1. The Business
Portfolio Map
2. A VC Investment Business
Mindset
Portfolio Map
3. The 21st Century Org
Chart

14

Google Sidewalks

Search/Adwords Google Fiber

Gmail

Android OS Calico

Google Ventures
Self-Driving Cars
Waze

You Tube Google Maps

Waimo
Nest Labs
Google Wave
 Business Model Portfolio (EXPLOIT)
Explore & Exploit BM Portfolios
EXPLOIT 58B$
High
real return
INVENT / INNOVATION (H2/H3) IMPROVE / EXECUTION (H1)

EXPLORE
profitable
Search/Adwords
<— spin off
31B$
Waimo Android OS

GROW —>
EXPLORE EXPLOIT
Gmail

acquisition — >
You Tube
Waze

Nest Labs Google Maps

Business Model Portfolio (EXPLORE) Low
real return
High
expected return EXPLORE High death/disruption
risk
PROTECT — > Low death/disruption
risk
sustainable

growth FOCUS cost cutting / efficiency

Self-Driving Cars
DESIGN —>

Google Sidewalks
VC-style investments INVESTMENT PHILOSOPHY stock market
Google Ventures

Calico Google Fiber iterative search linear execution

<— discontinued
experimentation, failure, insights CULTURE & PROCESSES failure not an option
Google Wave
exploration, pattern process & detail oriented,
Low
expected return recognition, big picture PEOPLE/SKILLS rigor
High innovation risk Low innovation risk
TEST — > w/ evidences

For Both Portfolios

High return
(profitable) Designed for: Designed by: Date: Version:
The Business Model Canvas
Key Partners Key Activities
Designed for:

Value Propositions
Designed by:

Customer Relationships
Date:

Customer Segments
Version:

The Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Designed for: Designed by: Date: Version:
The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Designed for: Designed by: Date: Version:
The Business Model Canvas

Key Resources Key Partners Key Activities Channels Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

Key Resources Channels

Cost Structure Revenue Streams

designed by: Business Model Foundry GmbH, Switzerland

Cost Structure Revenue Streams
www.businessmodelgeneration.com
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http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

designed by: Business Model Foundry GmbH, Switzerland

www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Cost Structure Revenue Streams

designed by: Business Model Foundry GmbH, Switzerland

www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

designed by: Business Model Foundry GmbH, Switzerland

Business Model
www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

profitability
A collection of Business Models,
balancing returns (profitability)
Portfolios The Business Model Canvas
Key Partners Key Activities
Designed for:

Value Propositions
Designed by:

Customer Relationships
Date:

Customer Segments
with risk (sustainability)
Version:
The Business Model Canvas
Key Partners Key Activities

Key Resources
Designed for:

Value Propositions
Designed by:

Customer Relationships

Channels
Date:

Customer Segments
Version:

Designed for: Designed by: Date: Version:

Key Resources Channels The Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Cost Structure Revenue Streams

Cost Structure Revenue Streams

Key Resources Channels

designed by: Business Model Foundry GmbH, Switzerland

www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
designed by: Business Model Foundry GmbH, Switzerland
www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

Cost Structure Revenue Streams

designed by: Business Model Foundry GmbH, Switzerland

www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

Low return
High risk death risk Low risk
(sustainable)
 Business Model Portfolio (EXPLOIT)
High
real return
(profitable)
INVENT / INNOVATION (H2/H3) IMPROVE / EXECUTION (H1)

EXPLORE EXPLOIT

EXPLOIT

profitability
Low
real return
High death/disruption risk death risk Low death/disruption risk
(sustainable)

Business Model Portfolio (EXPLOIT) 2017 Business Model Portfolio (EXPLOIT) Evolution
High 32% High
real return real return MAINTAIN (RENOVATE)
FABRIC & HOME CARE
(profitable) (Fabric Care, Home Care) (profitable)

% % of Net Sales 28% mature BM

SPINOFF — >
BABY, FEMININE & FAMILY CARE
(Fabric Care, Home Care)
>
GROW —>
18%
E
—
Illustration BEAUTY
(Hair Care, Skin & Personal Care)
Increase return OV
12% P R
Divestiture
HEALTH CARE
(Oral Care, Personal Health Care)
IM
BATTERIES BUSINESS
10% < — EXPIRY
PET CARE BUSINESS GROOMING CREATE — >
(Shave Care, Appliance) Add new BMs

Low Low
real return real return
High death/disruption risk Risks are simulated Low death/disruption risk
(sustainable)
High death/disruption risk
PROTECT — >
Reduce risk
Low death/disruption risk
(sustainable)
 Business Model Portfolio (EXPLOIT) BM trajectories
High
real return MAINTAIN (RENOVATE)
(profitable)

profitable BM mature BM
SPINOFF — >

>
GROW —>

E
—
OV
Increase return

P R
IM
< — EXPIRY BM at risk sustainable BM
CREATE — >
Add new BMs
Low
real return
High death/disruption risk Low death/disruption risk
PROTECT — >
Reduce risk (sustainable)

Business Model Portfolio (EXPLORE)

High
expected return
(profitable)

expected profitability
Inventing New Business
Models (Explore) EXPLORE
Low
expected return
High innovation risk death risk Low innovation risk
(little validation evidence) (strong validation evidence)
 Business Model Portfolio (EXPLORE) Evolution
High
expected return
(profitable)
TRANSFER — >
Increase expected profitability

new idea

>
DESIGN —>

N T—
E
I NV
< — KILL
IDEATE — >
Low
expected return
High innovation risk Low innovation risk
(little validation evidence)
TEST (VALIDATE) — > (strong validation evidence)
Reduce risk (increase expected sustainability)

Business Model Portfolio (EXPLOIT)

High

EXPLOIT EXPLORE
mature BM
real return

EXECUTION ENGINE

—
GROW —>

E
OV
transfer A BM PR
from EXPLORE portfolio
IM
to EXPLOIT portfolio new
—
> BM at risk
TE
EA
CR Low
Business Model Portfolio (EXPLORE)
real return
High
— High death/disruption PROTECT — > Low death/disruption
expected return

EXPLORE LA
UN
C H
>
risk risk

INNOVATION ENGINE BM w/ evidence

>
DESIGN —>

—
NT
VE
IN
prototyped
> BM
E
—
AT
IDE
Low
expected return

High innovation risk

TEST — > Low innovation risk ©
power battle? power battle?
 Business Model Portfolio (EXPLOIT)

Portfolio Evolution High

EXPLOIT real return

EXECUTION ENGINE EXPLORE

—

GROW —>
E
R OV
transfer A BM MP
from EXPLORE portfolio I
to EXPLOIT portfolio —
>
TE

Portfolio High
Business Model Portfolio (EXPLORE)
CR
EA

High death/disruption Low death/disruption

Low
real return

— PROTECT — >

Evolution
expected return

EXPLORE LA
UN
C H
>
risk risk

INNOVATION ENGINE
>

DESIGN —>
T
—
EN
INV
>
E
—
AT
IDE
Low
expected return

High innovation risk

TEST — > Low innovation risk ©

Business Model Portfolio (EXPLOIT) Business Model Portfolio (EXPLOIT)

Portfolio Evolution Unbalanced Portfolio

?
High High

EXPLOIT EXPLORE
real return
EXPLOIT EXPLORE
real return

EXECUTION ENGINE EXECUTION ENGINE

— —
GROW —>

GROW —>
E E
OV OV
transfer A BM PR transfer A BM PR
from EXPLORE portfolio
IM from EXPLORE portfolio
IM
to EXPLOIT portfolio —
> to EXPLOIT portfolio —
>
TE TE
EA EA
CR Low
CR Low
Business Model Portfolio (EXPLORE) Business Model Portfolio (EXPLORE)
real return real return
High High
— High death/disruption PROTECT — > Low death/disruption
— High death/disruption PROTECT — > Low death/disruption
expected return

EXPLORE LA
UN
C H
>
risk risk expected return

EXPLORE LA
UN
C H
>
risk risk

INNOVATION ENGINE INNOVATION ENGINE

? > >
DESIGN —>

DESIGN —>

— —
NT N T
VE VE
IN IN
> >
E
— E
—
AT AT
IDE IDE
Low Low
expected return expected return

High innovation risk

TEST — > Low innovation risk © High innovation risk
TEST — > Low innovation risk ©
 Business Model Portfolio (EXPLOIT)

Balanced Risky Portfolio High

EXPLOIT real return

EXECUTION ENGINE EXPLORE

—

GROW —>
E
R OV
transfer A BM MP
from EXPLORE portfolio I
to EXPLOIT portfolio —
>
TE
EA
CR
Business Model Portfolio (EXPLORE) Low
real return
High High death/disruption Low death/disruption
— PROTECT — >
expected return

EXPLORE LA
UN
C H
>
risk risk

INNOVATION ENGINE
>
DESIGN —>

—
NT
VE
IN
>
E
—
AT
IDE
Low
expected return

High innovation risk

TEST — > Low innovation risk ©

Business Model Portfolio (EXPLOIT)

Balanced Portfolio High

Early-StageVenture Returns (2004 - 2013) EXPLOIT EXPLORE

real return

EXECUTION ENGINE
70%
—

GROW —>
64.8%
E

“At Amazon we invented a lot of 60%

50%
6 out of 10 investments
lose money
transfer A BM
from EXPLORE portfolio
IM
PR
OV

to EXPLOIT portfolio >

things that customers did not do you have a balanced portfolio

% of Financings

—
TE
EA
40% 1 out of 4 makes CR Low
Business Model Portfolio (EXPLORE)
some money real return

30% High High death/disruption PROTECT — > Low death/disruption

4 out of 100 are —
EXPLORE
care about at all.”  that makes you invincible?
25.3% expected return
C H risk risk
UN
LA >
20%
home runs
INNOVATION ENGINE
10% >
DESIGN —>

— @jeffbezos 0%
0 - 1.0x 1.0 - 5.0x
5.9%

5.0 - 10.0x
2.5%

10.0 - 20.0x
1.1%

20.0 - 50.0x
0.4%

50.0x + IN VE
N T
—

>
Gross Realized Multiple Range E
—
AT
IDE
Low
expected return

Source: Correlation Ventures (data from VentureSource and other) High innovation risk
TEST — > Low innovation risk ©
 Building the Strategic Operating System
for the FT Global 500

alex@strategyzer.com

These slides are copyright of Strategyzer AG and are

If you like this presentation, please,
intended for personal use only. For other uses please inquire
feel free to share it but keep these copyright
about licensing fees with Natasha at sales@strategyzer.com.
restrictions
The followinginapplies
mind: to any content you intend to reuse:

• The Strategyzer logo should always fully appear on any slide that
contains our illustrations and/or content.

• This content should not be published on any other online or offline

channels other than Strategyzer’s, unless this has been
previously agreed upon by Strategyzer AG and formalized in
a written agreement.

• This content cannot be resold or integrated into any physical

or software product.

The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation
“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not
to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition
Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the
Strategyzer logo.

You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. 


Please contact support@strategyzer.com for any inquiry.

47