Wednesday, February 9, 2011

Business Model Canvas - Wikipedia, the free encyclopedia

Business Model Canvas | Dec 25th 2010 3:46 AM

The Business Model Canvas is a strategic management tool, which allows us 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.[1].

The Business Model Canvas was initially proposed by Alexander Osterwalder[2] based on his earlier work on Business Model Ontology.[3]

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 describe their business model

  • Infrastructure
    • 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.
  • Offering
    • Value Proposition: The products and services a business offers. Quoting Osterwalder (2004), a value proposition "is an overall view of .. products and services that together represent value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another."
  • Customers
    • Customer Segments: The target audience for a business' products and services.
    • Channels: The means by which a company delivers products and services to customers. This includes the company's marketing and distribution strategy.
    • Customer Relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.
  • Finances
    • Cost Structure: The monetary consequences of the means employed in the business model. A company's DOC.
    • Revenue Streams: The way a company makes money through a variety of revenue flows. A company's income.


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.

See also

Further reading

  • 2010. Business Model Generation, A. Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self published.


  1. ^ a b Business Model Generation, A. Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self published, 2010
  2. ^ The Business Model Canvas, July 05, 2008. Accessed Feb 25, 2010.
  3. ^ a b Alexander Osterwalder (2004). The Business Model Ontology - A Proposition In A Design Science Approach. PhD thesis University of Lausanne.

External links

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