Introduction Business Model Canvas

The Business Model Canvas, abbreviated as BMC, offers a clear and structured overview of a (to be developed) business model. This canvas can be used to understand, develop or redefine the business model of your own or someone else’s organisation.

The business model canvas

The right side of the canvas is about describing the yields (and targets) for the business described in the canvas. It starts with defining the target group and customer segments. Subsequently, it is about customer relationships that are made with the target group. In addition, it describes how value is created (the value proposition). It also determines through which channels the value is delivered. This provides insight into the income streams.

On the left side of the canvas, the components of the value proposition are made transparent and how the design, product, service or company is created. The most important activities, which are necessary to market the value proposition, are described under core activities.

Core resources are the materials and resources needed to implement the value proposition. All information about the parties required for this is described under the important partners. The left side provides insight into the total costs of the value proposition, the cost structure.

The BMC building blocks are key partners, key activities, key resources, value propositions, customer relationships, channels, customer segments, cost structure and revenue streams.

The Business Model Canvas was developed by Alexander Osterwalder and Yves Pigneur from Strategyzer (strategyzer.com).

Template

Download Template

Business Model Canvas

Executing the Method

  • Step 1: Canvas on paper

    Draw the model or print it on an A3 size or larger sheet of paper or opt for a flip chart.

  • Step 2: Mapping out the business model

    Start, in a group, by mapping the business model. This requires the most important and essential parts of the company.

  • Step 3: Work out building blocks

    Read and answer the questions in the template of this canvas per building block. Start on the right side of the canvas and then step by step to the left (see "order building blocks"). Then write or draw out all the content of the building blocks.

  • Step 4: Connecting the building blocks

    Connect the building blocks. Every value proposition needs a customer segment and revenue stream.

  • Step 5: Check

    Make sure all items on the right side of the canvas are supported by all items on the left. All other and unnecessary information can be removed.

Necessities

Block Order

  1. Customer segments (Who are your customers or users? Who wants to see or hear you?)
  2. Value propositions (What does the company offer what others do not have, what makes it distinctive, what values do you deliver, what customers problems are you solving? What is your promise? In other words, what services or products do you create?)
  3. Revenue streams (How is income generated and through what models? Tink of income, subsidies, investments, sponsorship)
  4. Channels (How does your value proposition reach your customer? How will you be seen and heard?)
  5. Customer relationships (What relationship do you have with each customer segment?)
  6. Key activities (What are the activities you perform daily to create and deliver your value proposition?)
  7. Key resources (What are the resources you need to create and deliver your value proposition?)
  8. Key partners (With whom we collaborate, what resources do they provide and what activities do they do? Think of suppliers, organizations, etc.)
  9. Cost structure (What are the costs you make to deliver your value proposition? think of basic costs, personnel costs, product costs, etc.)

When the model is completed for the first time, it may occur that some building blocks are incomplete or not completed. It's okay not to know exactly how everything will work. Then adjust it as needed, when and where possible.