Business model canvas
What is it about?
The business model canvas is a great tool to help you understand a business model in a straightforward, structured way. Using this canvas will lead to insights about the customers you serve, what value propositions are offered through what channels, and how your company makes money. You can also use the business model canvas to understand your own business model or that of a competitor!
Why is it relevant?
The business model canvas is a shared language for describing, visualizing, assessing and changing business models. It describes the rationale of how an organization creates, delivers and captures value. Using this canvas, you can describe in one page the different elements making your new business model unique.
Steps to conduct this activity
- Start filling up this first version of the business model canvas. Don’t worry, a lot of these blocks might still evolve over time.
- Start with the Value proposition in the center of the canvas.
- Then move to the customer segment and customer relationships/channels.
- Help yourself from the insights developed in the earlier phases
- Based on these first blocks, describe how you can CREATE value: which key stakeholders/partners should you involve? Which activities and resources are needed to perform?
- Finally, look at the value capture elements: what is your rough profit/cost equation?