Introduction to Business Model Canvas

The Business Model Canvas, introduced by Osterwalder (2008) is a method of analyzing, designing, strategizing and testing a business model based on nine business areas.

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Customer segments refer to the target people and/or organizations you are offering value proposition.

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Value is provided through various elements such as newness, performance, customization, reliability in ‘getting the job done’, design, brand, price, cost reduction, risk reduction, accessibility, and convenience.

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Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost-effective.

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Key partners are the network of suppliers and partners that make the business model work. Companies forge partnerships to optimize business models, reduce risk, and acquire resources.

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Key activities are activities that a company must do in order to make its business model work.

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Key resources are the most important assets needed to make a business model work. Every business model requires them, and it is only through them that companies generate value propositions and revenues.

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Revenue streams represent the cash a company generates from each customer/product segment.

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The quality of discussion and business strategies development for a business model canvas do not depend on the quality of input from participants.

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Business concept, models, objectives, strategies and a detailed project implementation plan for marketing, operation and finance can be developed through Business Model Canvas Chart.

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