Business Model Canvas

Create a business model blueprint

A business model describes the rationale of how an organisation creates, delivers and captures value. The business model canvas provides a visual overview of the nine building blocks of a business model.

The business model canvas

A visual template to reinvent your existing business model?

The Business Model Canvas

A Tool For Building Your Startup

The Business Model Canvas is a strategic tool that uses the language of view to create and develop innovative business models: it is the way in which a company CREATES, DISTRIBUTES and CAPTURES VALUE

A business model canvas is a visual overview of the nine building blocks of a business model, all laid out on the same page. Instead of just listing the components that you need to keep track of, a business model canvas is a tool that allows you to map out, develop and discuss your business model.

The first version of your business model canvas will be a starting point where you list the guesses about your business -- assumptions that need to be proven through interaction with your customers. As customers respond to your product, the business model canvas becomes a scorecard. Instead of just posting the guesses about your business like you would in a business plan, a business model canvas allows you to revise the guesses as you gather facts about your product and customers. Customers will probably reject parts of your business model, and the business model can be changed to meet the needs of the customer.

A business model canvas helps you figure out how to make those changes, since you can keep track of alternatives to your current business model and how your business model needs to change. Every time a change is required, you can draw a new canvas that shows the changes. Over time, the startup model canvas will become a "flip book" that shows how your startup has evolved.

Business Model Canvas

The 9 Building Blocks

The Business Model Canvas is a powerful framework that presents the nine startup building blocks addressed in a business model:

  1. Customer segments - who will be using and/or paying for your product or service
  2. Value propositions - the products and services that create value for your customers
  3. Channels - how you will reach customers and offer them your value proposition
  4. Customer relationships - the type of relationship you plan to establish with your customers
  5. Revenue streams - what people will pay for your product and how they will pay for it (transaction fee, subscription, etc.)
  6. Key resources - what you need in order to deliver on your business proposition
  7. Key activities - what you need to do to implement your business model
  8. Key partners - who will participate in the business and why
  9. Cost structure - the costs involved in delivering on your business model

You can keep track of these nine building blocks by using a business model canvas.

Inventor of the Business Model Canvas

Strategyzer - Alexander Osterwalder

Thanks to the intuition of Alexander Osterwalder, this model has revolutionised the way to "represent" a business model, making it possible to understand all the complex elements that relate to the operation of an entire company.

Different conceptualizations exist in literature that describe the model of business, in most cases, however, the visual representation is rather complex and scarcely intuitive. Osterwalder instead, proposed a single model based on the similarities of a wide range of other frameworks that have succeeded in time, realizing a functional synthesis decidedly exhaustive.

The Business Model Canvas was initially proposed by Alexander Osterwalder in his first job Business Model Ontology (2004) and developed by the same Alex Osterwalder, Yves Pigneur and Alan Smith along with a community of 470 experts in 45 countries around the world: this has led to the publication of the book Business Model Generation (in Italian "Creating business models," Edizioni FAG), a worldwide bestseller now translated into 26 languages.

The spread of the book and the power of the model has transformed the Business Model Canvas in a world standard and this is taught in the best business schools in the world such as Stanford University and Berkeley University.

Are you an existing business wanting to innovate your current business model or maybe a startup wanting to launch a business but not wanting to spend money going down the wrong road?  Do you want a tool though which you can test your business model assumptions before committing large funds to a high-risk path?

Then the Business Model Canvas is for you and your organisation!