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questioning your canvas with the
four actions framework

The combination of Blue Ocean Strategy tools and the Business Model Canvas provide cost perspective—provide ideal starting points from which to start questioning your
a solid foundation upon which to question your business model from value creation, business model using the Four Actions Framework. Changes to each starting point then
customer, and Cost Structure perspectives. We propose that three different perspec- allow you to analyze impacts on other areas of the Business Model Canvas (see also
tives—the Customer Segment perspective, the Value Proposition perspective, and the innovation epicenters on p. 138).

Cost Impact Exploration Exploring Value Proposition Impact Exploring Customer Impact
? ? ? ?

eliminate eliminate eliminate
reduce reduce reduce
raise raise raise
create create create
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cost-side value-side cost-side

Identify the highest cost infrastructure elements and Begin the process of transforming your Value Proposition Ask yourself the Four Actions Framework questions
evaluate what happens if you eliminate or reduce them. by asking the Four Actions Framework questions. about each business model Building Block on the
What value elements disappear, and what would you Simultaneously, consider the impact on the cost side customer side of the Canvas: Channels, Relationships,
have to create to compensate for their absence? Then, and evaluate what elements you need to (or could) and Revenue Streams. Analyze what happens to the
identify infrastructure investments you may want to change on the value side, such as Channels, Relation- cost side if you eliminate, reduce, raise, or create value
make and analyze how much value they create. ships, Revenue Streams, and Customer Segments. side elements.
› Which activities, resources, and partnerships have › What less-valued features or services could be › Which new Customer Segments could you focus
the highest costs? eliminated or reduced? on, and which segments could you possibly reduce or
› What happens if you reduce or eliminate some of › What features or services could be enhanced or newly eliminate?
these cost factors? created to produce a valuable new customer experience? › What jobs do new Customer Segments really want
› How could you replace, using less costly elements, › What are the cost implications of your changes to to have done?
the value lost by reducing or eliminating expensive the Value Proposition? › How do these customers prefer to be reached and
resources, activities, or partnerships? › How will changes to the Value Proposition affect the what kind of relationship do they expect?
› What value would be created by planned new customer side of the model? › What are the cost implications of serving new
investments? Customer Segments?

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