Business Model Canvas Company Examples – Business Model Canvas helps you visualize your business model. With a business model, you describe how your company creates, delivers, and captures value. This creates a shared understanding of what your business really is and what it does. With Business Model Canvas, it’s easy to discuss your business model with others.
You can design the business model canvas yourself, but it is more effective if it is done by a group of people, such as colleagues or domain experts.
Business Model Canvas Company Examples
Make a large printout of the Business Model Canvas template to use for brainstorming. Use sticky notes to add items to your printed Business Model Canvas, so you can easily change something or place an item in another block.
Business Model Canvas: A Type Of Alignment Diagram
Get inspired by Uber’s example and learn from the practical application of the Business Model Canvas.
The Business Model Canvas consists of nine basic building blocks. These blocks represent different parts of your company. Create your business model by completing the building blocks in the following order:
Determine what relationships your company has with customers. Relationships can range from personal to automated.
Describe how the company generates revenue. Income comes from selling your products or services or from other activities.
How To: Business Model Canvas Explained
Describe the suppliers and partners your company depends on. Partnerships can be formed to reduce risk or to acquire resources. The Business Model Canvas provides a structured and visual “one page” approach to understanding how a company, project or product can create, deliver and capture value. It is actually a picture that helps to describe and evaluate new or existing business models.
Developed in 2010 by Yves Pigneur and Alexandre Osterwalder, authors of Business Model Generation, the Business Model Canvas was originally intended as a tool for entrepreneurs and small business owners. Since then, it has been widely adopted by companies of all shapes and sizes around the world. There are many reasons for this:
The Business Model Canvas, sometimes called a “business matrix,” consists of nine main sections organized around three main themes:
Who are your customers? What target demographics do you hope to serve? Are they consumers (B2C) or other companies (B2B)?
How To Make A Business Model Canvas
How do you solve customer problems? How can your business or product offer to solve these problems? Why should your customers choose your business or product over your competition? What makes your business or product unique?
How will you interact with your customers? Are your customers autonomous? Do they need support? Are they a community? How will you communicate with your customers? What tone will you use? How do you plan to retain customers?
Which owned and operated channels will you use to reach your customers? What third party channels will you use to promote your business or product? How will your customers find your business or product?
What resources (human, financial or material) are needed to deliver value? What resources are needed to manage customer relationships? What resources are you currently lacking?
Business Model Canvas Explained
Who are the partners you can’t do business without? Who are your suppliers? Who are your supporters? Who are your other strategic partners?
How does your business make money? Do you sell individual (disposable) products or services? Do you sell subscriptions? How much are customers willing to pay for your product or service?
What are the hard costs associated with your business? What are the resource costs associated with your business activities? How are costs shared? Business Model Canvas (BMC) is a simple yet powerful tool for capturing and visualizing key elements of a business model on a single page. Read our quick introduction to learn how BMC works.
This image shows the populated business model canvas for the disruptive new business model we all know so well – ride sharing. We chose this example because it succeeds in clearly illustrating the key elements of a unique and innovative business model.
Business Model Canvas Explained: Examples And Structure
Uber was founded in 2009 with a groundbreaking and disruptive business model. However, the business model canvas and its nine key elements were first proposed in 2005. Although niche variations of the business model canvas have emerged since then, the original design has truly stood the test of time.
A business model canvas is a diagram that displays the most important features of a business model in predefined categories. It is laid out on one page as a collection of nine boxes, each box dedicated to one of the predefined categories. The diagram shows how all the elements work together to create value for customer segments and how that value is captured in the business. In addition, it considers the key resources, competencies and partnerships the business will need, how the business will build and maintain customer relationships, and the channels through which it will reach customers.
Within the Customers group, we have Customer Segments, Customer Relationships, and Channels. These three elements work together to tell the story of who you’re selling to, the ways you’ll build and maintain customer relationships, and the channels through which you’ll market your business and deliver value to your customers.
The next group, Value Propositions, defines what you will deliver to your customers to create value—in other words, the “packages” you will offer to specific customer segments that will be valuable to them. Value propositions can appeal to all customer segments, or you may want to create different value propositions for each customer segment or different sales channels. In our Uber example, all three value propositions apply to all customers and all channels. There is no universal right or wrong here, the approach you take will depend on what suits your business model.
Imd Business School: A Short Video Series On The Business Model Canvas
The next row is the Operations group. Within this group we find three elements – Key Activities, Key Resources and Key Partnerships. A key activity element describes the key tasks your business performs in delivering value propositions to your customers. Uber’s example is interesting – take care not to transfer people from A to B. This is a case of drivers doing their job (ignoring recent legal action). Instead, Uber’s job is to create a platform to connect drivers with customers. The Key Resources element describes the resources available to your business to carry out Key Activities. Facilities, staff, capital equipment, etc.
Finally, the Core Partnership element recognizes that it is impossible, or at least not beneficial, for a business to operate in a vacuum. This element covers the strategic partnerships your business will seek because it can’t (or shouldn’t) build those resources internally. Example – for a small company developing a small physical product, it probably won’t want to take on the capital costs of setting up its own manufacturing plant – it will probably want to find a manufacturing partner that will have the skills, the equipment. scale to build the product reliably and cost-effectively. Note that in Uber’s case, it views its drivers as partners rather than resources—a defining feature of its strategy. Another example of Core Partnership is working with outsourcing partners to bring critical skills and expertise to the company before justifying hiring specific employees. For more information on strategic outsourcing of Human Resources and Human Operations, see our Fractional HR page.
The next group is the cost structure. This element takes into account the most important costs inherent in the business model. This is the place to think about how to structure your biggest expenses. Are you a capital intensive business (eg manufacturing) or more of a people business (eg consulting)? Will you have large fixed costs or are they mostly variable? How cost sensitive are your customers – should you be a cost driven business (price sensitive) or will you focus on creating maximum value? How will your expenses increase as the business grows?
The last group contains the Income Streams item. This element describes how your business will capture the value you create for your customers and turn it into cash. The Uber example is quite simple in this regard – it takes a portion of the driver’s earnings. Other businesses have more complex revenue streams—think of the myriad ways Amazon collects cash from its customers—product sales, third-party sales commissions, advertising, basic subscriptions, music and video streaming, and selling spare computing resources like Amazon Web Services. to name just a few.
What Is Business Model Canvas And How To Use It
The business model canvas is a versatile tool that can be used for many valuable uses. Here are just a few ideas:
Work with us! Our Business Model Canvas package is available at 25% off for a limited time. The package includes:
This service works equally well one-on-one with you and one of your experienced facilitators or with your entire team. The sessions are great fun and will add great value to any business idea. This inclusive package is available for a limited time for $528 (new customers
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