Workshop: Business model design: Wien: What is business model canvas?
What is business model canvas?
You will use business model canvas to design, build and most of all to look for new business models. The business model canvas was first presented in the book Business Model Generation which itself was published as an innovative business model and is today available in eighteen languages.
Join the 650,000 people already using business model canvas and start inventing your business model.
The canvas is made up of 9 pillars, but the easiest way to imagine canvas is in three parts:
Central part of the business model canvas
The central part of the canvas, ‘value proposition’ is the heart of every business model. To know what your value proposition is you need to ask yourself what the problem that you are trying to solve with your business is? And at the same time what is the solution that you are offering? To really know what your value proposition is you don’t need expensive market research. It might be enough just to really observe your customers and think about empathy. You have a great case-study on the subject of figuring out your value proposition by a Harvard Business School professor, an author and entrepreneur, Clayton Christensen (video, 4:13 minutes).
Right part of the business model canvas
On the right part of the business model canvas you create the value of your business model.
When designing never forget to apply what the Channels to your customer segments are. Maybe (and very likely) you already have a few customers? Try to segment them and design the appropriate Customer relationships. Are you seeking long-term relationships with your customers or only customer ba customer? Do you need new customers or just trying to keep existing ones? Do you need personal or automated relationships with your customers? A tip for you: there are no extremes in customer relationships, you are always somewhere in between.
Last, but not least, for the right part of the canvas. Don’t forget to design your revenue streams. It should be the crucial part of your business.
Left part of the business model canvas
The left part of the business model canvas is the so called rational part. It’s where you have to find out if you have the necessary resources for your business model.
Do your resources support your value proposition, your channels, relationships with your customers and revenue streams? The same goes for the key activities. What are the activities needed to support the central and the right side of your business model? On the extreme left hand side of business model canvas you have the key partners. Who are your key partners and what is the core that you’ll keep inside your business model?
Again, last but not least, the cost structure of your business model needs to be known and approved. If not, the business model canvas is waiting for you to have another go at it. This is the beauty of the canvas.