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A conventional Business Model Canvas featuring the nine building blocks and the inter-connectivity form an operations perspective
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THE BUSINESS MODEL CANVASMangesh Satpute
Introduction
• What is a Business Model?• A Business Model describes the rationale of how an organization
creates, delivers and captures value.
• Building Blocks in a Business Model:• A business model can be described through nine building blocks
that give a logical reasoning of the company’s vision to make money
The nine Building Blocks
• Customer Segments• Value Propositions • Channels• Customer Relationships• Revenue streams• Key Resources• Key Activities• Key Partners• Cost Structure
1. Customer Segments
Customer Segments
• For whom are we creating the value?• Who are our most important customers?
2. Value Proposition
Value Proposition
• What value does the company deliver to the customer?• Which customer's problems are we helping to solve?• Which customer needs are we satisfying?• What are the products and services offered to each customer segment?
3. Channels
Channels
• What are the channels we can reach out to the customer?• What channels are currently used?• Which channel works the best?• Which channels are the most cost efficient?• How are we integrating it with customer routines?
4. Customer Relationships
Customer Relationships
• Which type of relationship does the customer expect us to establish and maintain with them?
• Which ones have we established?• How costly are they?• How are they integrated with rest of our business model?
5. Revenue Streams
Revenue Streams
• For what value are our customers willing to pay?• For what do they currently pay?• How do they prefer to pay?• How much does each revenue stream contribute to overall revenues?
6. Key Resources
Key Resources
• What key resources are required by our:Value propositionDistribution channelsCustomer relationships and Revenue streams
7. Key Activities
Key Activities
• What key activities are performed by:Value propositionDistribution channelsCustomer relationships and Revenue streamsKey partners
8. Key Partnerships
Key Partnerships
Who are our key partners?Who are our key suppliers?Which key resources are we acquiring from partners? Which key activities do partners perform?
9. Cost Structure
Cost Structure
• What important costs inherit in our business model?• Which key resources are the most expensive?• Which key activities are the most expensive?
Business Model Canvas
Customer Segments
Customer Relationships
Value Proposition
Key Activities
Key Resources
Key Partners
Cost structure Revenue Streams
