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This page is a draft at this point. Its goal is to hold all info about the Business Model Canvas, that we think is valuable for our customers. Subscribe to the page if you want to stay in the loop.

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Keywords: Diagramming, Business Diagram, Business analysis, Business Model Canvas 

Business Model Canvas

The Business Model Canvas is a strategic management template used to portray an existing or new business model, which is how an organisation create, captures, and delivers value within social, economic, and cultural contexts. The process of creating a business model is known as business model innovation, which is a part of a company's business strategy. The Business Model Canvas is a common tool to visualize the business model by breaking it down into nine distinguishable "building blocks", which represent elements describing a company's offerings, infrastructure, customers, and finances. The Business Model Canvas is a fixed template that allows user to simply fill in the 'blocks' 

Generic sample of a Business Model Canvas & the nine "building blocks" source: for Confluence

The Business Model Canvas was introduced in 2005 by Alexander Osterwalder in his book: Business Model Ontology, since its inception and usage, several new business canvases for specific niche markets have been developed. The Business Model Canvas has also inspired other frameworks such as the Lean Canvas, Social business Model Canvas, and the Service Business Model CanvasThe Value Proposition Canvas was also created by Osterwalder, which takes a detailed look at the relationship between two parts of the Osterwalder’s broader Business Model Canvas; customer segments and value propositions.

Elements of a Business Model Canvas

  • Key Activities: The most important activities in a company's value proposition.
  • Key Resources: The resources that are key in creating value for the customer, which include tangible and intangible assets such as human, financial, physical and intellectual. 
  • Key Partners: This includes stakeholder relationship such as buyer-supplier relationships, joint ventures, or strategic alliances. 
  • Value propositions: The value proposition is a promise of value to be delivered to the customer, which includes produces and services through various elements that 'add' value such as customization, brand status, or convenience. Oftentimes, the value proposition is what distinguished a business from its competitors. 
  • Customer Segments: The customers that a business is trying to serve. 
    • Mass Market: the business has a wide range of potential customers 
    • Niche Market: customer segmentation is based on the specific needs and characteristics of its clients
    • Segmented: customers are segmented further within a range of already existing customers (gender, age, and/or income).
    • Diversify: the business serves a wide range of customer segments with different needs and characteristics. 
    • Multi-sided market: business that serve mutual dependent customer segments (ex. credit card companies). 
  • Channels: Value is delivered to customers through different channels
  • Customer Relationships: the relationship between the business and its customers (ex. self-service, co-creation, personal assistance, etc.)
  • Cost Structure: The most important monetary consequences within the business model. 
    • Cost-driven: focus is on minimising costs
    • Value-driven: focus is on creating value
  • Revenue Stream: The method the business makes monetary gains from each customer segment (ex. asset sales, usage fee, subscription fee, etc.) 

How to Conduct a Business Model Canvas

There are several questions that you can ask in order to holistically fill in the Business Model Canvas. These questions are not exclusive, however they are good starting point when filling out the nine "building blocks"

How to Create a Business Model Canvas

There are several ways to create a Business Model Canvas. Today, the canvas is created using diagramming tools such as app, a software tool sponsored by Seibert Media. Learn how to use the Business Model Canvas template in and find more information through the blog or youtube channel for helpful tips and tricks. 

Resourceful Videos Interactive Diagram Link to a Master Diagram Atlassian Confluence and Jira
Business Model Canvas Explained

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Resourceful Links

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This page was last edited on 04/21/2021.