Business Model Canvas was first introduced by Alexander Osterwalder. It is a tool to help people understand a business model in a structured way. What business model canvas does is enable people to rapidly sketch out the key elements of the business as well as see how different perspective of business is interrelated.
This tool is not widespread only among start-ups, but it is getting more and more popular among SMEs and marketing experts as well.
The 9 Building Blocks of business model canvas
These blocks explain different components, players and functional correlation. The model demonstrates as a figure below.
Source : https://iammoulude.wordpress.com/2014/07/02/business-development-model-of-canvas-the-9-building-block-approach/
1. Customer Segment – The target customers that companies plan to offer value with services or products. The model may define small or large customer segments. A company needs to decide which segment to severe and which to ignore. Once a company made this decision, a business model can be circumspectly designed around an understanding of specific customer needs.
2. Value Proposition – This section is generated to describe how customer segment will value and differentiate the company from competitors.
3. Channels – The organisation deliver value proposition through communication, sales channels and distributions.
4. Customer Relationship – How do organisation plan to maintain strong relationships with customer segments.
5. Revenue Streams – There are two types of Revenue Streams that a business model can be involved: transaction revenue and recurring revenues. It illustrates how will revenues be brought from target customers by value proposition.
6. Key Resources – The assets required to run the operations of the company effectively.
7. Key Activities – The essential processes that make the business successful.
8. Key Partnership – Partnerships matter since some activities are outsourced and can be obtained through networking with people outside the organisation.
9. Cost Structure – All of the costs associated with a business.
Business Model Canvas of Meeting of Minds
