Business Model Canvas
Business Model Building Blocks
- An organization's business model can be described with nine basic building blocks:
- Customer segments
- Value proposition for each segment
- Channels to reach customers
- Customer relationships
- Revenue streams
- Key resources
- Key activities
- Key partners
- Cost structure
Business Model Canvas
- A tool to map, discuss, design, and invent new business models.
Nine Building Blocks
- Customer Segments: People or organizations for whom you're creating value (users and paying customers).
- Value Proposition: Bundles of products and services that create value for specific customer segments.
- Channels: Touch points through which you interact with customers and deliver value.
- Customer Relationships: Type of relationship established with customers.
- Revenue Streams: How and through which pricing mechanisms your business model captures value.
- Key Resources: Indispensable assets in your business model.
- Key Activities: Things you need to perform well.
- Key Partners: Entities that help leverage your business model.
- Cost Structure: The costs associated with operating the business model.
Business Model Canvas Benefits
- Allows mapping out the entire business model in one image.
- Useful for both start-up entrepreneurs and senior executives.