Business Model Canvas¶

The Business Model Canvas, created by Alexander Osterwalder and Yves Pigneur, is a strategic management and entrepreneurial tool that allows you to describe, design, challenge, invent, and pivot your business model. It’s a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances.

The nine building blocks of the Business Model Canvas are:

Customer Segments: These are the groups of people or organizations an enterprise aims to reach and serve.
Value Propositions: These are the bundle of products and services that create value for a specific Customer Segment.
Channels: These are the company’s touchpoints with its customers. They are how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
Customer Relationships: These are the types of relationships a company establishes with specific Customer Segments.
Revenue Streams: This is the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
Key Resources: These are the most important assets required to make a business model work.
Key Activities: These are the most important activities a company must execute to make its business model work.
Key Partnerships: These are the network of suppliers and partners that make the business model work.
Cost Structure: These are all the costs incurred to operate a business model.

Using the Business Model Canvas, organizations can easily brainstorm and visualize their business model, and then further iterate and evolve their ideas.

Business Model Canvas¶

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