Business Model Canvas
In our so called VUCA world, companies need to face the challenge of rethinking or reformulating their business model more and more frequently. Being a complex task already, it is even more challenging to convey the (new) business model to all stakeholders, hence, all directly or indirectly involved persons.
The Business Model Canvas is a frequently used method to rethink and visualize business models. It helps to develop innovative business models or reformulate existing models as well as simply outlining them in a clear way. This facilitates the understanding, discussion, evaluation and, finally, the optimization of business models.
At the center of interest are the company’s or offerings (?) business logic, which describes how value can be generated for the customers and how it can be financed.
Developing business models with the Business Canvas Model
The Business Model Canvas suggests nine dimensions to receive a comprehensive description of business models. These are:
- Key partners
- Key activities
- Key resources
- Value propositions
- Customer relationships
- Customer segments
- Cost structures
- Revenue streams
These dimensions can be adjusted according to demands and objectives.
A Business Model Canvas is generally established in five steps (e.g. Mobilize, Understand, Design, Implement, Manage). This does not require huge amounts of effort. It requires a large sheet of paper (e.g. A0 format) on which fields for all nine dimensions are drawn. The (interdisciplinary) team participants, who develop the business model, put their ideas in key words in a moderated process for each dimension – for instance on post-its. The advantage is that they can be removed and exchanged easily if not needed anymore.
So, many individual ideas can be integrated in an interrelating business model until a marketable model has been generated.
The advantages and benefits of the Business Model Canvas
- The (new) business model is developed by an (interdisciplinary) team in a structured way.
- A variety of individual ideas and most diverse experiences are incorporated in the development.
- Easily understandable and learnable method
- Easily applicable in (management) workshops
- Visualization facilitates understanding
- Visualization and systematic depiction facilitate presentation and explanation of the business model to people that were not involved in the development process
If you wish to learn more about business model development and the Business Model Canvas, contact us via e-mail at firstname.lastname@example.org or call +49 (0) 8170 9 22 33.