What are the key challenges and benefits of applying the business model canvas in the public sector?

💡 In my view, defining the value proposition in the public sector with the Business Model Canvas requires a clear, impact-driven approach. 🌍 Identifying Needs Understanding public sector value means focusing on societal benefits, not just financial returns. It's crucial to align with citizens' needs. 🔍 Articulating Impact Public sector solutions should clearly express how they address societal challenges. Success relies on demonstrating tangible social outcomes. 📊 Evidence-Based Backing the value proposition with data-driven evidence enhances credibility and trust, ensuring the solution’s effectiveness in the public domain. 👉 Clear value propositions drive meaningful change, ensuring resources go to impactful initiatives.

I don't see much difference in defining the value proposition between business and public sector. Corporate social responsibility has expanded the values of business to identify societal, environmental and economical benefit. It could be argued that these parameters are better established and have greater impact in the public sector. Societal impact is the principal motivation for public sector redesign but the economic costs have always been assessed against the proposed benefits. Environmental impact is a relatively new consideration, both in the private and public sectors, unless is has been a core mission of your organisation A shared BMC template for private and public sector would support collaboration and reduce risk

In Africa, medical technology innovation often involves developing cost-effective, robust solutions tailored to local needs and resource constraints. Examples include portable diagnostic devices for remote areas, mobile health applications for widespread access to medical information, and solar-powered medical equipment for regions with inconsistent electricity. However, applying the business model canvas in the public sector presents challenges, such as aligning with public health policies, addressing diverse stakeholder interests, and ensuring sustainable funding. Benefits include a structured approach to innovation, enhanced stakeholder engagement, and improved scalability and adaptability of healthcare solutions.

The value proposition is never an explicit matter of defining what makes revenue or profit, even in the private sector. A value proposition is about clearly articulating the value a solution provides to a particular problem through the eyes of a particular customer segment. This applies to public, private or charitable sectors alike - what is the service, product or solution and how does it meaningfully solve people's problems effectively and efficiently.

Définir la proposition de valeur dans le secteur public nécessite une approche holistique. En plus des impacts sociaux et politiques, il est important d'intégrer des perspectives de développement durable et d'inclusivité. Par exemple, vous pourriez évaluer comment votre solution contribue aux Objectifs de Développement Durable des Nations Unies, offrant ainsi une vision plus globale de l'impact public.

L'identification des parties prenantes dans le secteur public peut être enrichie par des approches de co-création. Impliquez activement les parties prenantes dans le processus de développement de votre solution, en utilisant des méthodes telles que les ateliers participatifs ou les plateformes de consultation en ligne. Cela peut aider à aligner les intérêts divers et à créer des solutions plus acceptées et efficaces.

Los stakeholders son parte vital del proceso de innovación, no solo se deben mapear, se debe identificar su tipo y el poder que tienen sobre el proceso. Una vez se cuenta con esta información se deben desarrollar estrategias de interacción y/o divulgación de alcance, avances, victorias tempranas para cada uno de ellos.

O mapeamento de stakeholders oculta ricas oportunidades. Ao visualizar as inter-relações entre os diferentes atores é possível compreender mais a fundo suas dores, bem como visualizar insights.

Challenge: Identifying and mapping stakeholders in the public sector can be challenging due to the wide range of actors involved, including government agencies, citizens, NGOs, and private organizations. Moreover, stakeholders often have diverse and sometimes conflicting interests. Consideration: Utilizing tools such as stakeholder mapping techniques and conducting thorough stakeholder analyses can aid in identifying key stakeholders and understanding their perspectives and influence on the business model.

In general I wouldn't shy away from using a BMC in the public sector because of the multi-stakeholder structure and its conflicting interests being: - public administration with citizen / election votes as main aspirational target - municipal companies with the mandate to deliver citizen services assigned via concessions - private companies that are delivering infrastructure services and housing with profit maximization targets However, it might be necessary to have several dimensions in such a BMC to be considered for an adequate representation of needs to be met with the targeted business execution a BMC is supposed to map out.

Innovation is an ongoing process that cannot be limited to a specific timeframe. The BMCs will change as the market forces and "context" changes. When creating, testing, and implementing a Business Model Canvas (BMC) in the public sector, it is important to understand that failure is inevitable. To ensure that your resources and capital are focused on the most effective business models, it is recommended to develop a portfolio of BMCs and test them relentlessly. This will help you identify and eliminate any business models that lack evidence and focus on the ones that can produce exponential results.

Não somente no setor público, mas também no privado ou nos negócios sociais, a flexibilidade e constante revisão do BMC precisa ser uma prática constante. Percebe-se aqui, novamente, a importância de uma cultura baseada em dados para geração de insights e tomada de decisão.

Na minha visão, uma boa prática é criar mecanismos para monitorar continuamente o ambiente externo e adaptar o modelo de negócios canvas conforme necessário. Isso permite que sua solução se mantenha relevante e eficaz, mesmo diante de mudanças políticas, restrições orçamentárias e regulamentações legais.

A aplicação bem-sucedida do Modelo de Negócio Canvas no setor público requer uma abordagem adaptativa, levando em consideração as características específicas e os desafios institucionais desse ambiente. A colaboração entre diferentes níveis de governo e o envolvimento dos cidadãos são fundamentais para maximizar os benefícios.

One significant challenge of applying the business model canvas in the public sector is adapting it to the unique context of public services. Unlike private businesses, the public sector's primary focus isn't profit, but serving citizens' needs, often within constrained budgets and regulatory frameworks. In my experience as a project engineer for the federal government, adapting business tools like the business model canvas involved redefining value propositions to align with public interests and regulatory requirements, ensuring the tools are effectively used for public sector objectives.

From a very fundamental perspective; the BMC is a very good framework for thought experiments around definitions of problems, solutions and types of population. It can be done as an individual, but is even better when done collaboratively (or at least with third-party critics). Building a BMC collaboratively can bring fresh perspectives, and can enhance value propositiona and append additional information that individuals on their own might have trouble to conceptualise or define.

Let’s get one thing straight. The BMC Is a framework that is helpful guide and visual structure for memorializing your concept development. But it isn’t the innovation in and of itself. In fact, there are many examples of similar concept development structures that predate the idea of the BMC. The tools and techniques that enable you to think differently are things like lateral, thinking, the idea burst method and the application of analogies and metaphors. The use of the BMC together with these techniques helps you to record and expand upon the ideas.

Pour améliorer la clarté, le BMC devrait être complété par des outils de visualisation de données et des techniques de narration. Cela peut aider à communiquer les aspects complexes de la solution de manière plus engageante et compréhensible, facilitant ainsi la prise de décision et l'adhésion des parties prenantes.

Uma compreensão clara dos segmentos de clientes, propostas de valor e canais de entrega pode levar a uma melhoria na entrega de serviços públicos, tornando-os mais eficientes e eficazes.

The BMC is powerful in aligning all of your activities to your goal and fending off a common malady in the public sector: mission creep.

Seamlessly align your solutions with mission and vision, define KPIs for measurable impact, and optimize efficiency for sustainable growth. BMC empowers you to deliver, measure, and scale solutions effectively in today's dynamic environment.

Identificar e eliminar redundâncias, bem como otimizar processos, pode resultar em ganhos de eficiência operacional dentro do setor público.

Toda innovación se debe medir, desde su planeación se debe concebir que debo mediry cómo lo voy a hacer. La innovación en sí solo es exitosa cuando el mercado la adquiere, en ese sentido se deben establecer objetivos e indicadores que permitan observar el comportamiento de la manera más real posible.

It is important to consider that many examples of the BMC are built for the private sector, where revenue is an important component of a business model. However, the BMC is made to be adaptable (hey, it is even provided with an open licence), and so if something doesn't fit very well for you - then change it, to make sense to you / your team / your organisation.

Algunos cuadrantes del BMC pueden verse muy alterados por las reglas y burocracias del sector público. Por ejemplo, en el cuadrante de "fuentes de ingreso", el sector privado tiene cierta libertad para definir modelos de pricing, frecuencia de cobros, unidad de venta, etc, mientras que el sector público está limitado sólo a la forma de financiamiento estipulada por ley o norma, y dicha ley es sumamente difícil de cambiar.

Building on what Daniel said above what I have seen employed well in public sector is the Mission Model Canvas which is a variation of the BMC but one perhaps more suited to public sector as it is more focused on understanding and articulating a mission or desired state than the BMC helping public sector bodies explore the issue they are facing.

We’ve developed numerous variations of the BMC based on the client, industry, and type of challenge that they’re facing. What I find particularly important is that as a facilitator of the process we need to test out the canvas to make sure that it really is useful and can be applied for good purposes after a session is over. For me, the canvas is merely an intermediate step that makes it easy to record our initial and collective contributions. But that canvas will then need to be translated into a pitch deck, or an infographic or a landing page that can bring the concept to life for the next level reviewer. So I strongly recommend that you think through what is that pitch deck look like before you even create your canvas and test it out

If you are unable to use money as a revenue stream, try to identify the closest thing to currency that you can use to build your Business Model Canvas. This could be the value you create for others in relation to the level of effort you put in. Remember, the Business Model Canvas is a framework, not a recipe, so it's up to you to adapt it to your specific needs and pivot when it's not the right tool.