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A Revamped Business Model for a Government Context

It has been about two weeks since I did my last post on business models and thanks to a significant amount of feedback from my colleagues, the government business model template we’re using, has evolved.  Now, I think it will add real value to our organisation.  I’m adamant that this will give us the framework necessary to drive our business requirement gathering.  The template has been adapted from Alexander Osterwalder’s original, Business Model Canvas, to make it more relevant to a government context, as described in the earlier post.  The purpose of the template is provide a framework for a series of new, independent statutory authorities that will be created to implement the Australian government’s health reform agenda.  In that way, it has a similar purpose to a commercial model, to set the context for a new organisation.  Similar to Osterwalder’s original canvas, it also uses graphics to emphasise the different building blocks of the canvas, unlike the earlier version I posted which was clinical and rather boring.  Now there is interest and the eye is drawn through colour and emphasis, to the most important elements first.  As the authors, we want you as the audience, to read it in a certain way, so that you understand the building blocks in a particular order.  We’ve used watermarks to illustrate the cyclical nature of the organisation, which is part of a value chain in the government’s new service offering.

Building Blocks of the Modified Government Business Model Template

Each of the building blocks has been deliberately chosen to illustrate the purpose of the entity and its place within the government value chain.  A lot of the building blocks are the same as the previously posted version, but they fit in a more logical flow now.

Problem Drivers – This isn’t a business model canvas building block as such, but has been added because it adds contextual value. It is adapted from the ‘driver’ component of the Investment Logic Map created by the Victorian Government of Australia.  The problem driver shows what problems the government perceived to exist, for which this canvas is a solution.

What are we aiming for? – This is the central element of the canvas.  The size and colour add emphasis. Because it is used within a project environment it is more analgous to a business outcome of a project. I firmly believe that this will drive the vision for the new organisation, because it summarises the ultimate purpose of the organisation.  Within a business motivation model context, it is the ‘end’ that the organisation is trying to achieve.

Role – What role does the organisation play?  Within a business motivation model (strategic plan) context, this is the ‘end’ (mission) the organisation is trying to achieve.  At this stage it should be high level.

Entity Inputs – Because this organisation sits within a value chain, it relies on inputs from other entities whether they’re organisations or key government personnel such as ministers.

Business Services – What are the high level business services within a business process management (BPM) context that are needed to take those inputs and transform them into outputs?

Capabilities Required – Just as services are required, so too are capabilities to transform the input into an output.

Entity Outputs – What is this entity passing along to the next player within the value chain or if it’s at the end, the receiver of the end product?

Governance and Authority – Under what authority is this entity constituted?  Has a government statute brought it about?  Is it an executive arm of the government?

Key Stakeholders – Who are the key players in this entity, both internally and externally? 




Concerns I Have with this Version of the Government Business Model Template

I believe that the original Business Model Canvas wasn’t applicable within a government context, particularly, as part of a project within a government context.  However I understand that Alexander Osterwalder and his colleagues went to a lot of trouble to compose the original canvas and the building blocks were chosen with a deliberate and very well researched intent.  My concern is that by changing the canvas, I along with my colleagues may have diluted that original intent and missed out crucial elements.  It also may not be applicable widely enough and have to be constantly tweaked for different contexts even if they’re within a government environment.  I would love your constructive feedback on this version of the canvas.

Please note that the Government Business Model Template is a derivative work based on the Business Model Canvas, but it is not in any way endorsed by Alexander Osterwalder or his collleagues who developed the Business Model Canvas.
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