The Business Model Canvas is defined as a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent and adapt your business model.
The nine building blocks of the Business Model Canvas:
Key Partners
The network of suppliers and partners that makes the business model viable.
Key Activities
The most important actions a company must perform to operate successfully.
Value Propositions
The value a company delivers to a specific customer segment.
Customer Relationships
The types of relationships a company establishes with specific customer segments.
Customer Segments
The different groups of people or organisations a company aims to reach and serve.
Key Resources
The most important assets required to make a business model work.
Channels
The different ways in which a company communicates with and delivers value to its customer segments.
Cost Structure
All costs incurred in operating a business model.
Revenue Streams
The revenue a company generates from each customer segment.
Together, these elements provide a comprehensive description of a company’s business model, which can be used to analyse, design and innovate new business models. By reviewing the company’s nine building blocks, the framework can be used to analyse, design and innovate new business models.
Source:
Business Model Generation, 2010, Alexander Osterwalder & Yves Pigneur