What’s the benefit of using the Business Model Canvas?
Burn your Business Plan
It’s a strategic template that allows you to develop new or existing business models. The Business Model Canvas (BMC for short) brings all the essential elements of a successful business model into a scalable system – it is suitable for detecting strengths and weaknesses as quickly as possible, developing the model further and optimizing its components. The Business Model Canvas was invented by Alexander Osterwalder and published in 2008 for the first time.
In the following 2-minute video, you can learn more about the 9 building blocks of the Business Model Canvas:
Why do you need a Business Model Canvas?
The creator of Business Model Canvas, Alexander Osterwalder, created a short and very informative slideshow (see below). The slideshow explains what the Business Model Canvas can do for you and your business; especially why it matters so much.
What exactly are the 9 building blocks of the Business Model Canvas?
In order to explain the 9 components of the Business Model Canvas in more detail, in addition to the explanation of the individual elements, we have created an example of a Business Model Canvas from our own company. If you would like to use real examples to better understand the individual blocks, you can find this at the top of this page.
Who are the most important partners of my company? Which suppliers or business partners can I successfully cooperate with? What is my relationship with the most important business partners?
What are my main activities with which I can optimally solve the problems of my customers? At the end of the day, what brings my customers a real benefit?
What resources do I need to be able to add real value to my clients? These resources are important assets necessary to successfully run the business. These resources can be human, financial, physical and intellectual.
Value Proposition is made up of the products and services you offer to create value for your customers. According to Osterwalder, companies distinguished themselves by their value proposition of their competitors. The value is created by different elements: i.e. Performance, Reliability, Usability, Risk Minimization, Price, Cost Reduction, Design, Brand, Novelty, Performance, and Quality.
The value propositions are divided into:
-Quantitative: price and efficiency
-Qualitative: the entire customer experience and result
What exactly is the relationship with my current / potential customers? For the survival of every business, it is important to identify which relationships a company wants to establish with the respective customer segments. It is important here how the personal contact with the customers is designed, in sales and in customer service. In addition, the customer may also be given the opportunity to actively cooperate directly in the creation process of the product / service in order to be able to fulfill his comprehensive wishes.
How do I reach my customers? Which communication and distribution channels can my customers use to contract with me? Here, it is conceivable to establish your own channels or to work together with partners.
How do I segment my customers? The more specific the customer segments are, the better the individual needs of the respective segments can be addressed. Each segment ticks differently, has different preferences and other issues. For example, customers could be segmented by preferences, age, gender, income, location, education, industry, company size, etc.
What is the cost structure of my company? Which resources do you spend on a monthly basis? What costs could I possibly reduce or cancel? What is my general strategy in this area? Maybe you could aim for cost reduction i.e. Economies of scale, like low-cost airlines, to be the cost leader in the market. Another possible strategy would be quality leadership, where higher quality costs me higher costs.
Through which different sources of revenue does my company achieve sales? There are various sources of revenue conceivable, such as: sale of products / services, rental / leasing of products, licensing, subscription fees, agency fees etc.
These are the 9 different phases of Business Model Canvas that combine to give a structured, powerful picture of your business model. This can help you to base your corporate strategy on the future in a well-founded and informed manner.
Now you’re wondering what exactly Business Model Canvas can do for your business? How it can help you better understand the overall business strategy and business model, and at the end of the day, help you better solve your customers’ problems? We would be happy to advise you on creating a roadmap for the future for your company, based on the Business Model Canvas.
We’d be very glad if you contact us via the contact form or by phone (+49 711 520899-30).