A visual guide to strategic business model transformation using the Business Model Canvas
Based on The Invincible Company by Osterwalder, Pigneur, Etiemble & Smith
01
Nine building blocks that describe how an organization creates, delivers, and captures value. The canvas is your strategic language.
The network of suppliers and partners that make the business model work
BackstageThe most important things you must do to make your business model work
BackstageThe assets required to make the business model work
BackstageThe bundle of products and services that create value for customers
The types of relationships you establish with customer segments
FrontstageHow you communicate with and reach customers to deliver value
FrontstageThe different groups of people or organizations you aim to serve
FrontstageAll costs incurred to operate the business model
Profit FormulaThe cash generated from each customer segment
Profit FormulaHow you create and deliver value. The operational engine that customers don't see.
How you reach and relate to customers. The interface they experience.
How you make money. The financial viability of the model.
02
Proven patterns for transforming a declining business model into a more competitive one. Each shift changes specific blocks of the canvas.
SHIFT 01
Affects: VP Rev CR KA
SHIFT 02
Affects: VP KR KA Cost
SHIFT 03
Affects: VP CS Rev KA
SHIFT 04
Affects: CS CH VP Rev
SHIFT 05
Affects: CS CH CR KA
SHIFT 06
Affects: CR CH KA Cost
SHIFT 07
Affects: KR CS VP Rev
SHIFT 08
Affects: KR KP Cost KA
SHIFT 09
Affects: KA KP KR VP
SHIFT 10
Affects: Cost KA KR VP
SHIFT 11
Affects: Rev CR VP KA
SHIFT 12
Affects: Rev Cost VP CS
03
Good design on paper doesn't mean it works in reality. Continuous iteration between designing and testing reduces the risk of pursuing ideas that won't work.
Shape ideas into stronger business models
Reduce risk by validating hypotheses
Generate multiple ways to configure your business model
Create tangible business model designs using the canvas
Identify what must be true for this to work
Design and run tests to gather evidence
Decide to persevere, pivot, or abandon
04
Every business model hypothesis falls into one of four risk categories. Test all four to validate your transformation.
Will customers want this? Will they switch? Will they pay?
Can you build and deliver this at scale?
Will this generate sustainable profit?
Can this survive and evolve as conditions change?
Adaptability risk surrounds the entire canvas — testing whether the model can survive external changes
05
Each transformation shift modifies specific blocks. The transformation is complete when you've redesigned affected blocks and validated the new configuration.
Orange blocks are transformed. The value proposition shifts from product to service. Activities change from manufacturing to service delivery. Customer relationships deepen. Channels add service touchpoints. Revenue shifts from transactional to recurring. Costs restructure around service operations.
Green blocks are transformed. Key resources become products sold externally. New customer segments emerge. Value proposition expands to include capability access. New revenue streams open from external customers.
06
Transformation is not a single event. It's a disciplined process of mapping, designing, testing, and iterating.
Map your current Business Model Canvas. Learn the transformation methodology and the 12 Shifts.
Explore transformation patterns. Create future-state canvases for promising concepts.
Build digital prototypes. Validate with customers before major investment.
Test with real customers, real delivery, and real economics at small scale.
Grow validated models into sustainable business lines. Integrate to the Run business.
Use it to make strategy visible and debatable. Current state, future state, and the gap between them become tangible and actionable.
Don't invent from scratch. Apply proven transformation patterns that have worked for others facing similar challenges.
Every transformation is a hypothesis. Reduce risk by validating assumptions before committing major resources.
Understand your competitive landscape, market forces, and organisational readiness. That context determines urgency and shapes which shifts make sense.
Follow a complete transformation journey from assessment to scale with full canvas visualisations.
View Cordstrap Case Study →