Business Model Canvas's Creator
The Business Model Canvas was presented in details by Alexander Osterwalder and Yves Pigneur in Business Model Generation in 2010, but was already outlined in Alexander’s work Business Model Ontology in 2008...
Description of the Business Model Canvas
The Business Model Canvas is a strategic management template for developing new or existing business models. It is a one-page tool composed of 9 elements describing a company’s value proposition, infrastructure, customers, and finances. Here is a 2 minute video providing an overview of the Business Model Canvas. It’s the best short summary to start understanding this powerful canvas.
As the video briefly mentions, the Business Model Canvas is composed of the 9 following segments, which can be filled out by answering some key questions:
Who are your key partners/suppliers?
What are the motivations for the partnerships?
What key activities does your value proposition require?
What activities are important the most in distribution channels, customer relationships, and revenue stream…?
What core value do you deliver to the customer?
Which customer needs are you satisfying?
What relationship that the target customer expects you to establish?
How can you integrate that into your business in terms of cost and format?
Which classes are you creating values for?
Who is your most important customer?
What key resources does your value proposition require?
What resources are important the most in distribution channels, customer relationships, revenue stream…?
Through which channels that your customers want to be reached?
Which channels work best? How much do they cost?
How can they be integrated into your and your customers’ routines?
What are the largest cost in your business?
Which key resources/ activities are most expensive?
For what value are your customers willing to pay?
What and how do they recently pay? How would they prefer to pay?
How much does every revenue stream contribute to the overall revenues?
The video by Mark Zimmerman, CIO at MaRS, really deliver the essence of every parts of the canvas and will help you get started :