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 use the business model canvas to understand your own business model or that of a competitor! The Business Model Canvas was created by Alexander Osterwalder, of Strategyzer.
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.
List the top three segments. Look for the segments that provide the most revenue.
What are your products and services? What is the job you get done for your customer?
List your top three revenue streams. If you do things for free, add them here too.
How do you communicate with your customer? How do you deliver the value proposition?
How does this show up and how do you maintain the relationship?
What do you do every day to run your business model?
The people, knowledge, means, and money you need to run your business.
List the partners that you can’t do business without (not suppliers).
List your top costs by looking at activities and resources.
You can learn a lot from your competition. Choose some competitors and map their business models. Armed with this information you’ll have deep insight into what customers want and what they are willing to pay for. You’ll have a clearer picture of just how customers’ needs are met across the entire industry, not just in your company. And, you’ll uncover vital information about how other businesses, maybe even very successful businesses, have created their own spaces in the market.
Start by mapping out the business on a high level: only the most important, vital aspects of the business model.
Link up the building blocks: every value proposition needs a customer segment and a revenue stream! When everything is on the board, take a step back. Have a short break. Did you miss anything? Forget something?
Don’t mix ideas for a future state with what is going on right now, and don’t mix different departments!
Take a step back check if every customer segment is linked to a value proposition and a revenue stream. Make sure everything on the left side of the canvas is needed to support the right side of the canvas. Everything else can go.
Rank your business model's performance (0:bad, 10:excellent) for each of the following questions: