The Business Model Canvas
• Business Model:
o Describes the rationale of how an organization creates, delivers, and
captures value
o You need a business model everyone understands, facilitates
descriptions and discussions
o Concept must be simple, relevant, and intuitively understandable
without oversimplifying
• The 9 Building Blocks
o Customer Segments
§ Organizations serve one or several customer segments
§ Defined as different groups of people or organizations an
enterprise aims to serve and reach
o Value Propositions
§ Seeks to solve customer problems and satisfy customer needs
with value propositions
o Channels
§ Value propositions are delivered to customers through
communications, distribution and sales channels
o Customer Relationships
§ Established and maintained with each customer segments
o Revenue Streams
§ Results from value propositions successfully offered to
customers
o Key Resources
§ Are the assets required to offer and deliver the previously
described elements…
o Key Activities
§ By performing a number of key activities
o Key partnerships
§ Some activities are outsourced and other resources are acquired
outside the enterprise
o Cost Structure
§ The business model elements result in the cost structure
• Customer Segments
o Organization decides segments to serve through understanding if
needs used to design the business model
o Types of Segments
§ Mass Market
• Focus on one large group with broadly similar needs and
problems, example: electronics
• Business Model:
o Describes the rationale of how an organization creates, delivers, and
captures value
o You need a business model everyone understands, facilitates
descriptions and discussions
o Concept must be simple, relevant, and intuitively understandable
without oversimplifying
• The 9 Building Blocks
o Customer Segments
§ Organizations serve one or several customer segments
§ Defined as different groups of people or organizations an
enterprise aims to serve and reach
o Value Propositions
§ Seeks to solve customer problems and satisfy customer needs
with value propositions
o Channels
§ Value propositions are delivered to customers through
communications, distribution and sales channels
o Customer Relationships
§ Established and maintained with each customer segments
o Revenue Streams
§ Results from value propositions successfully offered to
customers
o Key Resources
§ Are the assets required to offer and deliver the previously
described elements…
o Key Activities
§ By performing a number of key activities
o Key partnerships
§ Some activities are outsourced and other resources are acquired
outside the enterprise
o Cost Structure
§ The business model elements result in the cost structure
• Customer Segments
o Organization decides segments to serve through understanding if
needs used to design the business model
o Types of Segments
§ Mass Market
• Focus on one large group with broadly similar needs and
problems, example: electronics
