The Business Model Canvas is a strategic management tool that helps entrepreneurs and businesses to visually map out their business model. It was created by Alexander Osterwalder and Yves Pigneur and was first published in their book “Business Model Generation” in 2010.

The Business Model Canvas consists of nine key building blocks that represent the various elements of a business model. These blocks are:

1. Customer Segments: The different groups of people or organizations that a business aims to serve.
2. Value Proposition: The products or services that a business offers to solve customers’ problems or fulfill their needs.
3. Channels: The various ways that a business delivers its value proposition to its customers.
4. Customer Relationships: The types of relationships that a business establishes and maintains with its customers.
5. Revenue Streams: The ways that a business generates revenue from its value proposition.
6. Key Resources: The assets and resources that a business needs to create and deliver its value proposition.
7. Key Activities: The key tasks that a business needs to perform in order to deliver its value proposition.
8. Key Partners: The external partners and suppliers that a business relies on to create and deliver its value proposition.
9. Cost Structure: The costs and expenses associated with creating and delivering a business’s value proposition.

The Business Model Canvas provides a structured way for businesses to think through their business model and identify potential areas for improvement or innovation. It is a useful tool for entrepreneurs, startups, and established businesses alike to map out their strategy, communicate their business model to stakeholders, and identify opportunities for growth and optimization.

Example

Here is an attempt to arrive at the business model canvas for a fictitious Kosmo Primo bank that works in the Letter of Credit business.

See also

Business Value Canvas