To the end of the line – including intermediaries and end customers in the business model CANVAS

Abstract

The Business Model CANVAS is a widely adopted business model creation, visualization, and analysis framework. The CANVAS focuses on target customers but fails to consider the intermediaries situated between these target customers and end customers, especially consumers who are not directly targeted. Digitalization (e.g., the Internet of Things and digital platforms) has enabled direct interactions between manufacturers and their end customers, facilitating more profound insights into customer needs and preferences. Incumbent manufacturers must leverage digitalization to gain direct access to end customers and add value across the value chain. However, this transition poses challenges in redefining the roles of intermediaries and ensuring value delivery to all stakeholders. While direct contact with end customers enables manufacturers to bypass intermediaries and tailor offerings to consumer needs, it also risks disrupting existing intermediary relationships. Manufacturers must maintain strong intermediary relationships and align strategies with market dynamics to mitigate risks and foster collaboration. This article addresses how the CANVAS can be extended to encompass the entire value chain from manufacturers to end customers. We introduce the concept of a market-sided ecosystem comprising direct customers, intermediaries, and end customers. We also emphasize the need for value creation and delivery across all these direct and indirect customers. Several tools (e.g., Pains and Gains, Customer Journey, Intent Analysis) are used to aid in understanding complex relationships within the ecosystem and identifying conflicting interests. In conclusion, integrating digitalization, sustainability, and customer-centricity into business models necessitates a holistic approach, navigating complex ecosystem dynamics to create and deliver value across the value chain.