Entrepreneurship in the digital age is more often done by an engineer than a businessman. Electronic and computer literacy are very different skills than reading a balance sheet and interpreting the underlying realities of a company. This is paving the way for a new type of approach to startups and company creation. This is Business Model Canvas (BMC).

Founded in 2010 by Alexander Osterwalder in his dissertation,  The Business Model Ontology – A Proposition In A Design Science Approach, he explains, “Design science means designing a business model framework that helps managers and IS specialists express the business logic of a firm in a new way, abandoning the former informal business logic descriptions.”

In English, BMC was developed as a result of the technological revolution at the turn of the millennium. Previously, entrepreneurs used to use an industrial model that wasn’t as flexible with the versatility the internet has to offer. Thus, Osterwalder developed a more scientific approach to help get engineers as comfortable in the office as they are in the lab.

By developing the BMC and ditching the previous way that business planning was done, individuals with a science background now have the freedom to monetize their ideas without as much outside help. The BMC was later re-designed using the Lean Model, to help startups specifically. This process was seen as so effective that a few companies have endorsed it publicly and it even has been endorsed by Code for America. The Lean Model has even been so successful that it was implemented by the Chief Technology Officers of the United States in 2011.

 

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Spencer Lasday
Spencer is a Senior Economics Student at the University of Central Florida where he is currently focused on learning about public fiscal policy to continue pursuing his career in the public sector. He previously worked at the financial education platform, MoneyShow, that focuses on helping people manage their money into and through their retirement. He is passionate, enthusiastic, and dedicated to making sure that others shed their fear about money.