The Business Model Canvas is a strategic management tool, which allows you to develop and sketch out new or existing business models. It is a visual template pre-formatted with the nine blocks of a business model.
The nine blocks include:
Key Activities: The activities necessary to execute a company’s business model.
Key Resources: The resources that are necessary to create value for the customer.
Partner Network: The business alliances which complement other aspects of the business model.
Value Proposition: The products and services a business offers.
Customer Segments: The target audience for a business’ products and services.
Channels: The means by which a company delivers products and services to customers.
Customer Relationship: The links a company establishes between itself and its different customer segments.
Cost Structure: The monetary consequences of the means employed in the business model.
Revenue Streams: The way a company makes money through a variety of revenue flows.
The Business Model Canvas can be printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with post-it note notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis.