Business plans are far from dead, but the old business formula is fading into obscurity. In the past you would write a business plan, pitch to investors, assemble a team, introduce a product or service, then get out and try to sell it. The principles of a lean start-up, which focus on minimizing initial capital expenditures and using real customer feedback to develop a profitable product or service, have turned this model on its head. Today it is more important to find a business model, formulate a hypothesis ( i.e. we believe that consumers are looking for a higher quality alternative to ...... and our product / service fills that void), then get out and test your theory. This should be done before assembling a team or investing vast amounts of capital into product development. This business model canvas has made a name for itself because it allows you to make some assumptions, see how your company can be of value to its customers, test your assumptions, and change them quickly if necessary. Whether you run a tech start-up or a multinational organization, it is becoming more important to test your theories before you create an elaborate business plan or begin product development.
Take a look at the article by Bob Dorf entitled, “Are Business Plans Really Dead?"