228 The Business Model Canvas consists of a right-hand value and customer-focused side, and a left-hand cost and infrastructure side, as descibed earlier (see p. 49). Changing elements on the right-hand side has implica- tions for the left-hand side. For example, if we add to or eliminate parts of the Value Proposition, Channels, or Customer Relationship Building Blocks, this will have immediate implications for Resources, Activities, Partnerships, and Costs. Blue Ocean Strategy is about simultaneously increasing value while reducing costs. This is achieved by identify- ing which elements of the Value Proposition can be elimi- nated, reduced, raised, or newly created. The fi rst goal is to lower costs by reducing or eliminating less valuable features or services. The second goal is to enhance or create high-value features or services that do not signifi - cantly increase the cost base. Blending Blue Ocean Strategy and the Business Model Canvas lets you systematically analyze a business model innovation in its entirety. You can ask the Four Actions Framework questions (eliminate, create, reduce, raise) about each business model Building Block and imme- diately recognize implications for the other parts of the business model, (e.g. what are the implications for the cost side when we make changes on the value side? and vice versa). +value value-side value creation –costs cost-side cost implications blending the blue ocean strategy framework with the business model canvas + = eliminate raise reduce create Business Model Canvas Value innovation Blending approaches bmgen_final.indd 228 6/15/10 5:44 PM