Concept: Business Model Canvas
Skill Goal: Be able to convey your business model on a single sheet of paper.
“ Unless you have tested the assumptions in your business model first, outside the building, your business plan is just creative writing.” – Steve Blank
- A business model describes a high level overview of how a business captures or creates value.
- A business model is not static, it is a set of assumptions that is tested and retested
- The Alexander Osterwalder Business Plan Canvas uses 9 components:
- Value Proposition – The benefits a customer receives from the solution;
- Customer Segments – The segment(s) of the market that has a demand for the solution;
- Channels – The methods used to acquire customers and distribute the solution;
- Customer Relationship – The ongoing interaction established with clients;
- Ex: Personal assistance, Dedicated personal assistance, Self-Service, Automated services, Communities, Co-creation
- Key Resources – Physical, financial, intellectual, or human resources needed to create the solution;
- Key Activities – The key activities necessary to implement the business model;
- E.g. Production, Problem Solving, Platform/network
- Key Partners – The key partners and their motivations to participate in the business model;
- Revenue Streams – The revenue streams generated by the business model (constituting the revenue model);
- Cost Structure – The cost structure resulting from the business model.