Saturday, May 28, 2011

Business Model Canvas



Business model is basically a mental model and concept of set of strategies and investments a company should pursue, so that they can be integrated into a congruent whole, thus enabling company to gain a competitive advantage and achieve superior profitability and profit growth.
To be able understand the business model, instead of doing a mental model it is better if the company can sketch the business model. Sketching the business model can help the owner and the executive of the company to understand the strategies that the company want to pursue. The sketch will give a clear picture of the business and help the executives to plan a strategy to achieve the goals.
Whenever we want to sketch or draw something, we need a canvas to draw on. In this case we need the BUSINESS MODEL CANVAS. Business model canvas is a set of drawing blocks that build a business model. There are 9 blocks that use as a representative to build the model, which are :
1.       Customer  segment
2.       Value proposition
3.       Channels
4.       Customer relationships
5.       Revenue streams
6.       Key resources
7.       Key activities
8.       Key partners
9.       Cost structure



Every block is a representative of the key factor that should be consider when build a business model. Each building block has connection to others that linking each other  as a system. This canvas is use to sketch the business model, from defining customer segment until breaking down the cost structure.


A complete business model will encompasses the totality of how company will :
1. Select its customer.
2. Define and differentiate its product and service.
3. Create value for its customers.
4. Acquire and keep customers.
5. Provide value-added product and services.
6. Deliver the products and services to the market.
7. Configure its resources.
8. Achieve and sustain a high level of profitability.
9. Grow the business over time.

1 comment:

  1. Business Model Patterns I would like to say that this blog really convinced me to do it! Thanks, very good post.

    ReplyDelete