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Business Model Canvas

What is a Business Model Canvas?

Business Model Canvas: The term "Business Model Canvas" refers to a strategic management tool that allows businesses to visualize, design, and reinvent their business models. Specifically developed by Alexander Osterwalder and Yves Pigneur, this framework is presented on a single canvas, simplifying the complexities of how a business creates, delivers, and captures value.

Business Model Canvas in More Detail

The canvas is divided into nine key segments:

  • Customer Segments: Identifies the different groups of people or organizations a business aims to reach and serve.
  • Value Propositions: Defines the bundle of products and services that create value for a specific Customer Segment.
  • Channels: Outlines the ways a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
  • Customer Relationships: Describes the types of relationships a company establishes with specific Customer Segments.
  • Revenue Streams: Represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
  • Key Resources: Describes the most important assets required to make a business model work.
  • Key Activities: Denotes the most important activities a company must take to operate successfully.
  • Key Partnerships: Lists the network of suppliers and partners that make the business model effective.
  • Cost Structure: Outlines all the costs incurred to operate a business model.
Jonathan Mitchell

Jonathan Mitchell

Financial Industry Lead

With an undergraduate degree from the University of Georgia and an MBA from Emory University, Jonathan has dedicated his 11-year career to top insurance brokerages, even experiencing life and work in Austria during his studies. He excels at brokering insurance…

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