The inspirational Osterwalder’s Business business model canvas is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems. It is a strategic management tool that allows you to describe your business model. It is a visual chart with a poster format that gives you the possibility of have a visual representation of your business model. It enables nine elements of a business model to be captured and discussed by a group of people working together.
Business business model is made by nine blocks and every block contain an element, the nine elements are:
- Customer segments: for whom do we aim to create value? Who are our most important customers?
- Value Propositions: what do we offer to whom? What value do we deliver to a customer in a given segment? What needs do we satisfy?
- Channels: how do we reach each customer segment? What is easiest for the customer?
- Customer Relationships: how do we build and maintain these? How do they fit effectively in both the customer’s world and our own?
- Revenue Streams: for what will our customers pay? How much? How would they prefer to pay?
- Key Resources: what resources are essential to deliver our Value Propositions through the Channels and maintain our Customer Relationships?
- Key Activities: what are the most important things you must do to make your business work?
- Key Partnerships: who are our Key Partners and why? What Key Resources do they provide and what Key Activities do they carry out? What’s in it for them? What relationship should we have?
- Cost Structure: what costs are implied by our Business Model? Which are largest? What is fixed and what is variable? What drives them
For presentation/explanation purposes, the image-set below may be helpful.