Business Models Flashcards

Vocabulary flashcards covering key terms, definitions, and building blocks of the Business Model Canvas.

Business Model

Describes the rationale of how an organization creates, delivers, and captures value.

Business Model Canvas

A tool developed by Alexander Osterwalder (2008) that allows synthesizing the operationalisation of a strategy.

Customer Segments (CS)

Defines the different groups of people or organizations an enterprise aims to reach and serve.

Value Propositions (VP)

Describes the bundle of products and services that create value for a specific Customer Segment.

Channels (CH)

Describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.

Customer Relationships (CR)

Describes the types of relationships a company establishes with specific Customer Segments.

Revenue Streams (R$)

Represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).

Key Resources (KR)

Describes the most important assets required to make a business model work.

Key Activities (KA)

Describes the most important things a company must do to make its business model work.

Key Partnerships (KP)

Describes the network of suppliers and partners that make the business model work.

Cost Structure (C$)

Describes all costs incurred to operate a business model.

Practical Steps for Business Modeling

The sequential steps taken in practice: 1) Plot the canvas on a poster, 2) Put the poster on the wall, and 3) Sketch out your business model.