The business model canvas in multi-generational settings
A thought experiment to use traditional business methods with children, students and adults.
Why it makes sense to make business methods child-friendly
The business model canvas (BMC) has been proposed by Osterwalder, Pigneur & Smith (2010). Since then it became a recognized business tool with justified critique. Some consider it a “powerful tool” to tackle all business problems, because it allows transparent communication, quick iterations and simplification and visualization. Some say it’s oversimplified and doesn’t solve the underlying problems.
My objective of this thought experiment is not to explain or discuss the business model canvas. It is to investigate how the business model canvas can be used in a scenario consisting of both young(er) and old(er) generations. And to find out how useful the BMC can be in such a multi-generational setting. I want to redesign this powerful tool for a broader target group, driven by these principles:
- Solve complex problems multi-generational — kids, students and adults
- Foster hybrid thinking — strategic, creative, empathetic and holistic
- Draw insights from arts, business, design, entrepreneurship, strategy and technology
Companies often complain about their lack of creativity and stress the importance of “out-of-the-box” thinking, but they also don’t dare doing things differently.
What if we merge the superpowers of children, students and adults to make them partners?
Children are experts in creating creative fictive worlds with unlimited possibilities, entering themselves in these worlds as different characters. Children say clearly what they think. Children are not afraid to see and question both the most obvious and the most hidden. Children are curious, unbiased and eager to learn about the world they live in.
Students are experts in making the most from their limited resources and finding clever lifehacks to make their life easier. Often with hidden business potential for fundamental challenges.
Adults are experts in abstraction, strategizing and implementing a tasks to meet a certain objective. They consider the complexity of an idea and evaluate both feasibility and scalability.
Now, I’m not suggesting to put children, students and adults in the same room all the time, but to recognize and foster synergies. I suggest openness to learn from each other — hand-in-hand and eye-to-eye:
- Old(er) generations re-examine traditional thoughts and learn new concepts with help from the young(er).
- Young(er) generations learn from the experiences of the old(er) generations and learn early to take social responsibility.
- Businesses (if they dare) can fundamentally analyse and redesign their business model, using all insights generated.
It’s time to review the traditional young [vs?] old relationship and integrate it into our current business practises.
Step 1: Simplify the BMC and identify fundamental elements
Let’s look at a children-understandable example to get a better understanding of the BMC fundamentals. Remember the last hike with your friends, having a bonfire at the lake and roasting marshmallows? Remember your friend falling into the water, making your stomach hurt from laughing too much? In case you were the organizer, do you also remember the time spent on planning the trip, buying marshmallows and coal, inviting your mates, reminding them of the trip over and over again, and paying upfront to make things easy for everyone?
The business model canvas explains your weekend trip with your best friends better than you think.
The Value Proposition is about your friends’ motivations why they want to go on the trip with you and how to manage their expectations. You promised them the funniest trip ever, making them forget about upcoming exams for a weekend. Everyone is excited for the bonfire and your usual games.
Motivation is derived from the word motive which is defined as a need that requires satisfaction. These needs could be wants or desires that are acquired through influence of culture, society, lifestyle, etc. Wants are often distinguished from needs: a need is something necessary for survival (food), whereas a want rather is a nice-to-have. For your upcoming trip, you proposed the value “enjoy without worries”. Proposing value makes you think about your friends’ feelings, their expectations, needs, wants and worries.
Key Resources/ Partners/ Activities are three BMC sections which are about the operational infrastructure required to realize your value. Here is what you need:
- knowledge about organizing events and ideas about the location and activities;
- supplies you are going to buy from the closest supermarket (supplier) or you need to bring (like marshmallows, coal and blankets). This is your inventory;
- a list of your friends you invite, your friends (obviously!) and maybe a driver. These are your human resources;
- maybe Jägermeister sponsors a round of shots for the bonfire? And what about the bus driver getting you there? These are your partners;
- finally, you have to take care of activities like scheduling the trip, making sure you’re having everything and maybe support your friends organizing themselves.
In short, it is about people involved, things needed and verbs to describe what people do with things.
When thinking about Customer Segments you think who your target group of the trip is. Each friend has specific demographic attributes you considered consciously or subconsciously: gender, age, behaviours, similarities, fun factor…Again, it’s all about people.
Channels make you think how you usually talk with your friends. Messenger, Instagram, in your weekly courses, meetings at the pub, playing soccer together? This section makes you think about communication and marketing to get everyone excited.
When thinking about relationships with your friends, surely some great moments come to mind instantly. Like when Jake accidently fell into the lake when trying to get the ball out of the water? Relationships are about fulfilling someone’s needs and proudly sharing the stories about these fantastic moments. When thinking of customer relationships, think about how you prepare for making this the greatest trip ever.
Income/ Expenses might be the most annoying and most important part. Manage your finances and make sure everyone pays their share.
Step 2: Take-aways of BMC childification
Defining the most fundamental elements of the BMC and explaining them in the most simple terms opens up a myriad of use cases independent from age. We found that its fundamental concepts are:
- people — humans involved at any stage in the business model,
- things — everything that can be interacted with,
- verbs — the interactions or ‘what people do with things’,
- feelings, expectations — emotions which drive the customer journey,
- needs, wants — intrinsic or extrinsic motivations of the customer.
This way of thinking allows deconstructing the original canvas. It requires adults to think about a business from a different perspective and it allows children to contribute their understanding to the business model. Taking the (seemingly) obvious questions from children seriously can help simplify the business model or come up with alternative communication strategies. When children misunderstand aspects it could mean there is a logical gap. By visualizing the key concepts and their relationships businesses can get different versions of the original canvas elements. Each might provide tweaks or ideas for new business models. Using artful methods like Lego Technics can both foster creativity among all participants and prototype new ideas or identified problem scenarios.
If a business idea can’t be explained to a 12-year old school kid your business model can do better.
If childification is possible with traditional methods like the BMC, what else can we reimagine? I hope to soon provide you some empirical evidence and examples of this methodology!
