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  • Writer's pictureOzzie Paez

Business model uncertainties

My previous post touched on sources of external uncertainties in the emerging economy. This one focuses on internal business model uncertainties.

Business models define their business’ rationale and operational logic. They encompass the processes and functions that transform inputs into the outputs that deliver compelling customer value. Alexander Osterwalder breaks down business models into eight building blocks that include Customer Segments, Value Propositions, Delivery Channels, Cost Structure, and Revenue Streams.

It’s a useful framework that we reference, expand, and tailor to help individual businesses identify operational and competitive uncertainties. We then use benchmarks and competitive strategy analysis to reframe key uncertainties as hypotheses to be tested in the emerging economy. This process can transform uncertainties into risks, identify opportunities, and help business leaders update their business models and competitive strategies.

I’ve successfully applied this methodology in previous economic and national security contexts, including the aftermath of 9/11. My next post will include examples developed over the last two weeks.

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