Business Model Canvas Examples – The Business Model Canvas (BMC) is a simple but powerful tool for capturing and visualizing the basic elements of your business model on a single page. Read our brief introduction to BMC to find out how it works.
This image presents a crowdsourced business model canvas for a disruptive new business model we are all familiar with – ride sharing. We chose this example because it manages to clearly describe the basic elements of a unique and innovative business model.
Business Model Canvas Examples
Uber was founded in 2009, with a groundbreaking and disruptive business model. Yet the Business Model Canvas and its nine core elements were first presented in 2005. Although niche variations of the Business Model Canvas have since emerged, the original design has actually stood the test of time.
Linkedin Business Model Canvas
A business model canvas is a diagram that captures the most important features of the business model in predefined categories. It is arranged on one page as a collection of nine boxes, with each box dedicated to one of the predefined categories. The diagram shows how the elements all work together to create value for customer segments and how that value is captured in business. In addition, it considers the key resources, skills and partnerships the company will need, how the company will build and maintain business relationships, and through which channels customers will be reached.
Within the customer base, 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 business relationships, and the ways 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 “bundles” you will offer to specific customer groups that will be of value to them. Value propositions can appeal to all customer segments, or you may want to create different value propositions for each customer segment or for different sales channels. In our Uber example, all three value propositions apply to all customers and all channels. There is no absolute right or wrong here, the approach you take depends on what works for your business model.
Next is the Operations Group. Within this group we find three elements – Key Activities, Key Resources and Key Partnerships. The key activity element describes the main tasks your company performs in delivering the value proposition to your customers. Uber’s example is interesting – note the lack of getting people from A to B. That’s the job of drivers, who are (ignoring recent legal action) self-employed. Instead, Uber’s job is to create a platform to connect drivers with customers. The key resource element describes the resources your business will need to make available to carry out its key activities. Think about facilities, staff, resources, etc.
What Is Co Op’s Business Model?
Finally, the key partnership element recognizes that it is not possible, or at least not practical, for a company to operate in a vacuum. This aspect captures the strategic partnerships your company will pursue because it cannot (or should not) build these resources internally. Example – for a small company that develops a physical product in small quantities, it is likely that it does not want to incur the capital costs of setting up its own manufacturing plant – it is likely that it wants to find a manufacturing partner with the skills, equipment and scale to build the product on reliable and cost-effective way. Note that in Uber’s case, it sees drivers as partners rather than resources – a defining characteristic of its strategy. Another example of a key partnership would be working with outsourcing partners to bring critical skills and expertise to the business before it can justify hiring specialized staff. See our page on Fractional HR for more information on strategic HR outsourcing and People Ops.
The next group is Cost structure. This factor considers the most important cost inherent in the business model. This is the place to consider how your biggest expenses will be structured. Are you a capital-intensive company (e.g. manufacturing) or are you more people-oriented (e.g. consulting)? Will you have large fixed costs, or are they mostly variable? How cost sensitive are your customers – do you need to be a cost driven company (price sensitive) or are you going to focus on maximum value creation? How will your costs grow as the business grows?
The last group contains the Income Streams element. This aspect 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 cut of the driver’s income. Other companies have more complex revenue streams – think of the myriad ways Amazon collects money from its customers – product sales, commissions for third-party sales, advertising, premium subscriptions, music and video streaming, and selling its spare computing resources as Amazon Web Services to name just a few.
A business model canvas is a versatile tool that can be put to many valuable uses. Here are just a few ideas:
Amazing Business Model Canvas Templates ᐅ Templatelab
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 instructors, or with your entire team. The classes are great fun and will add tremendous value to any business idea. This inclusive package is available for a limited time for $528 (new customers only). Contact us now with offer code BMCNEWCLIENT25 for more information. Not so long ago, organizations had to rely on a number of established tools to build their business models, set strategy and innovate. The use of a business plan as we know it today began to decline in the 1980s and 1990s due to the complex and time-consuming research process. This decline has – not surprisingly – coincided with the high-tech boom and Silicon Valley’s start-up culture.
A business plan was integral to any organization that wanted to connect with innovation. But what does that mean today? Despite – maybe because of? – their age and traditional status, business plans take time, effort, involvement of key advisors and financial resources to put together.
Today, startups, especially of the technological variety, cannot afford such luxuries. To keep up with competitors, grow fast and innovate, they really require agile technology, a mind map that is easy to write, edit and understand.
Business Model Canvas.
In 2004, business economist Alexander Osterwalder and his University of Lausanne professor Yves Pigneur proposed a business model design that could replace cumbersome business plans.
An approach soon named the Business Model Canvas (BMC) has since acquired a respectable number of loyal practitioners. Not only startups have used the approach, but also giants like Microsoft, SAP and General Electric. Let’s find out what the Business Model Canvas is and explore how a software company can use this approach to success.
The Business Model Canvas is a visual template for identifying and organizing the different elements of your business model. It divides the canvas into nine sections, each responsible for the most important business aspects of each organization.
You can view all the canvas boxes in our business model canvas template online. It is free and easy to use. Remember to return to the article for a detailed explanation of its use.
Tisdd Method: Business Model Canvas
With an abundance of methodologies for building business models, there must be something really special about the Business Model Canvas that has earned it a place among the classic tools.
To get started with BMC you will need: a small group of people, a whiteboard or large sheet of paper, labels and stickers and up to an hour of time. Once you’ve gathered everything, it’s time to map. Let’s get down to the weeds.
Your customers will dictate how your business operates every day. By knowing and understanding your customers, you will be able to define the core of your business – the value proposition.
If you’re a software company, your customers can vary from individuals to global organizations, and they all require different types of relationships, distribution channels, and payment options. Previously, we explained how to create a buyer persona for a SaaS business. As for BMC, the concept is similar.
Customer Segments Business Model Canvas
In addition to the segmentation rules we covered in the article, there are several customer groups that should be considered for software companies:
Used apps and software. Technology segmentation defines which devices, mobile apps, and desktop apps your customers use most often. It will let you know how customers with different devices experience your product and you will be able to tailor your content specifically to their needs. With technology now a huge driver of jobs and lifestyles, this is key to understanding your target audience.
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