Canvas Model

Business Model Canvas
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Business Model Canvas: nine business model building blocks, Osterwalder, Pigneur & al. 2010
The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition,infrastructure, customers, and finances.[1] It assists firms in aligning their activities by illustrating potential trade-offs.
The Business Model Canvas was initially proposed by Alexander Osterwalder[2] based on his earlier work on Business Model Ontology.[3]
Contents[hide] * 1 The Business Model Canvas * 2 Application * 3 See also * 4 Further reading * 5 References * 6 External links |[edit] The Business Model Canvas
Formal descriptions of the business become the building blocks for its activities. Many different business conceptualizations exist; Osterwalder's work and thesis (2010,[1] 2004[3]) propose a single reference model based on the similarities of a wide range of business model conceptualizations. With his business model design template, an enterprise can easily describetheir business model
* Infrastructure
* Key Activities: The most important activities in executing a company's value proposition. An example for Bic would be creating an efficient supply chain to drive down costs.
* Key Resources: The resources that are necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain andsupport the business. These resources could be human, financial, physical and intellectual.
* Partner Network: In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures, strategic alliances betweencompetitors or non-competitors.
* Offering
* Value Proposition: The collection of products and services a business offers to meet the needs of its customers. According to Osterwalder, (2004), a company's value proposition is what distinguishes itself from its competitors. The value proposition provides value through various elements such as newness, performance, customization, "getting thejob done", design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability.
* The value propositions may be:
* Quantitative- price and efficiency
* Qualitative- overall customer experience and outcome
* Customers
* Customer Segments: To build an effective business model, a company must identify which customers ittries to serve. Various set of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients. The different types of customer segments include:
* Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organizationdisplays a wide view of potential clients.
* Niche Market: Customer segmentation based on specialized needs and characteristics of its clients.
* Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.
* Diversify: A businessserves multiple customer segments with different needs and characteristics.
* Multi-Sided Platform / Market: For a smooth day to day business operation, some companies will serve mutually dependent customer segment. A credit card company will provide services to credit card holders while simultaneously assisting merchants who accept those credit cards.
* Channels: A company can...