Three Levels of Business Models
This tool allows you to build your business model portfolio in one page. Using the tool allows you and your team to shift from focus on only one business model to many.
Three Levels of Business Models
From one to many
Today, most companies have a grasp of their business model. Over the past ten years they have learned how to map, test and design their powerful business model. This is excellent.
Now, companies need to shift from one to many. Three Levels of Business Models has been in use around the world since 2014, helping companies shift from one to many business models.
Build your portfolio
Future-thinking companies know they need to develop business model portfolios. Three Levels of Business Models gives companies a structured approach to their portfolio thinking.
Increase your transformational capacity
Successful companies understand the need to reinvent and transform. The ability to cycle through business models lies at the very heart of transformation. Once implemented, the Three Levels of Business Models truly powers your transformation engine.
Implementing the Three Levels of Business Models allowed us to build, and exit our software company at significantly higher valuation than we otherwise would have.
Use Case: Tech Company
A Nordic Tech company knew they were facing a business model crunch. Growing rapidly around their core business model of technology consulting, they were facing obvious business model constraints on scalability, valuation drivers and exit scenarios. Simply stated, they were too much of a body shop, growing their firm by recruiting at one end, and hiring out talent at the other end.
Looking for a new strategic framework, the founders came across the Three Levels of Business Models. This made intuitive strategic sense to them, as they started experimenting with early ideas on potential future business models. Over the coming weeks, the founders fully grasped the structure and power of the strategy tool, using this to build a large portfolio of potential bets.
In the following months, testing out these small bets with real life clients, two software models bore fruit, allowing the company to develop two significant, very scalable business models.
18 months later, the revenue potential and scalability of the software-driven business models, drove a significant higher valuation as the early investors took an exit in the company to a large industrial buyer.
How to Use it
Stick it on the walls
Embed into management practices
Shifting to a business model portfolio mindset is not done in a single workshop. It takes weeks, even months. It needs to get embedded into the management mindset, the operating model of the firm, the board meetings and all-hands-on-deck-townhall-meetings.
Track, iterate, adjust, and learn over time
Use the Three Levels of Business Models to track, test, iterate, pivot, close down, adjust, kill and scale your potential portfolio. Few would have guessed, when Uber launched Uber Eats, that it would drive $20BN in valuation at the time of Uber’s IPO. But, that’s the power of business model portfolio innovation, you can balance your main business model with an intelligent portfolio of small bets.