Business Model Canvas (BMC)

Business Model Canvas is defined as a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent and adjust your business model.

The nine core components of the Business Model Canvas:

Key Partners The network of suppliers and partners that enable the business model to function effectively.		Key Activities The primary actions a company must perform to operate successfully.		Value Proposition The value a company delivers to a specific customer segment.		Customer Relationships The types of relationships a company establishes with its specific customer segments.		Customer Segments The distinct 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 various means through 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 cash flows generated from each customer segment.

Together, these nine components provide a comprehensive description of a company’s business model, which can be used to analyse, design and innovate new models.

Source:
“Business Model Generation”, 2010, Alexander Osterwalder & Yves Pigneur