Modern Notation of Business Models: A Visual Trend

Information overflow and dynamic market changes encourage managers to search for a relevant and eloquent model to describe their business. This paper provides a new framework for visualizing business models, guided by well-shaped visualization based on a mind mapping technique introduced by Tony Buzan. The authors’ approach amplifies Alexander Ostervalder’s ideas on the new level of abstraction and well-structured description of business models. It also seeks to simplify the Osterwalder model. As a result, the new form of visualization enhances perception, increases the quality of business communication and decreases cognitive pressure. To evaluate the proposed framework’s efficiency, the authors conducted a pilot study involving a survey of 22 experienced top-managers of Russian companies and examined their perceptions of three ways of describing the same business model: a linear text, a Canvas business model by Osterwalder, and a business model mind mapping template. We used Mindjet, the popular mind- mapping software, to conduct the experiment. Results confirmed the hypothesis that the mind-mapping visualization framework we developed is ‘cognitive scaffolding’ and is positively associated with managers’ and employees’ improved perception and understanding of the business model, which allows them to communicate, share and manipulate business model knowledge easily.