The Business Model Canvas was proposed by Alexander Osterwalder and is based on his book, Business Model Ontology. It s is a strategic management and lean start-up template that a business can use when developing new or documenting existing business models. Basically, it is a visual representation that describes the nine critical elements of a firm’s product or service offerings.
The Canvas assists the entrepreneur in aligning their activities by illustrating potential trade-offs. With it, a company can easily describe and present various business model conceptualizations to stakeholders so they can be compared before marshaling the company’s resources toward building and testing a minimally viable solution.
Principally, the tool looks at the customer segments the product or service will target, the value proposition it will offer each customer, how it will reach them, the infrastructure and leverage it will require in terms of key activities, resources, and partners to execute, and the financial implications in terms of its cost structures and revenue streams. By completing the canvas, the final chart enables both new and existing businesses to focus on operational as well as strategic management and marketing.
I have created a simple Business Model Canvas PowerPoint template, including basic instructions, to apply it to your business. Miro formerly RealtimeBoard also has a free Canvas tool that is even easier to use than my PowerPoint tool but lacks the external Environmental Forces that I think make a great addition to the value of the tool. If you chose to use the Miro template you can just add the four additional boxes to your Canvas.
Over the next few posts, we will look at the various blocks of the Canvas so you can better apply the tool to your specific situation.
Would your business benefit from utilizing the Business Model Canvas to capture the key elements of your business model in one graphical representation?
