Business Model Canvas

The **[[Business Model Canvas]]** is a business design template developed by [[Alexander Osterwalder]] that simplifies business strategy and the [[Business Model]] into nine 'building blocks'. ^about A version of the template with basic example illustrated below. A key premise of the model is the [[Begin with the end in mind]], i.e. who your customer is and what value you provide them, and working 'backwards' into the structures and enablers required to achieve that end. ![[Business Model Canvas.excalidraw.svg]] 1. **Customer Segments**: Who do we serve? Who are the most important customers? This is never a company, it is always a human persona. Companies do not buy things or make decisions, the people within those companies do. Decision Maker > Economic Buyer > Recommender > Influencer > User 2. **Value Propositions**: What value do we provide? Why do people choose us? 3. **Channels**: How do we reach our customers? How do they reach us? Awareness > Evaluation > Purchase > Delivery > After Sales 4. **Customer Relationships**: How do we interact with our customers? 5. **Revenue Streams**: How do we make money? How much do they pay? Would they? 6. **Key Resources**: What internal assets and capabilities do we need to enable everything to the right? Physical, Intellectual, Human, Financial, etc 7. **Key Activities**: What actions do we need to enable everything to the right? 8. **Key Partnerships**: Who do we need to work externally with to enable everything to the right? 9. **Cost Structure**: How much does it cost to run the whole operation? Refer to [this video](https://www.youtube.com/watch?v=LLKqthJOdN8) for a 90-second 'theatre' analogy of what the canvas is, or [this video](https://www.youtube.com/watch?v=8GIbCg8NpBw) for a 50-minute run-through by canvas developer [[Alexander Osterwalder]] himself. ## Extensions The [[Value Proposition Canvas]] (also developed by [[Strategyzer]]) is a 'zoom in' of steps 1 and 2 of the *Business Model Canvas* comprises. It is intended to better consider and qualify (and design) the value proposition (and its why) and your customer segments (and their why). The [[Operating Model Canvas]] by [[Andrew Campbell]] seeks to expand steps 6, 7, and 8 of the *Business Model Canvas* into the *how* or operationalisation of the business. The **Enhanced Business Model Canvas** is the diagram developed by Campbell that composites the operating model canvas and the value proposition canvas onto the business model canvas and is represented below. ![[Enhanced Business Model Canvas.excalidraw.svg]]