Osterwalder's business model canvas

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In this article we describe Osterwalder's business model canvas, often used as aid for developing a new, or analysing and mapping an existing business model of a company.

What is the business model canvas?

The Canvas Business Model can be used as aid for developing a new, or analysing and mapping an existing business model of a company. It gives a graphic representation of a number of variables that show the values of the organisation. The model is developed by Alexander Osterwalder.

The Canvas business model is as follows:

Canvas business model

Key Partners

  • What are the most important partners?
  • Which role do the most important partners play?
  • How can the company be succesful along with partners?

Key Activitions

  • What are the chief activities of the company for a succesful value proposition?
  • How does the company gain new clients?
  • How can the company keep current clients?

Key Resources

  • Which resources are required for a succesful value proposition?
  • Which resources are required for distribution?
  • Which resources are required for CRM?

Value Proposition

  • What kind of value does the company deliver? (example: best price or service)
  • Which problem does the company try to solve for clients?
  • To which clients does the organisation want to serve?

Customer Relationship

  • Which relationship the organisation needs to build with specific client groups?
  • How long is the relationship with clients?
  • What relationship with clients are there now?

Channels

  • Via which channels does the company need to come into contact with the client?
  • In what manner does the company sell to clients?
  • Which channels work best?

Customer Segments

  • What are the most important client groups?
  • To which segments does the company deliver?
  • For whom can the company create the most value?

Cost Structure

  • What are the most important costs within the business model?
  • What are the most costly key activities and key resources?
  • Where do the biggest expenditures lie?

Revenue Streams

  • For which value proposition do clients want to spend?
  • Why and on what do current clients spend?
  • How does the revenue model of the company look like?

Conducting business model Canvas

By devising a new business model via the Canvas, clear decisions are taken concerning the strategy of a company. By answering on a number of questions per category such as the above, a clear value proposition comes to stand. Improving an existing business model via the Canvas method is simple. By looking at which developments there are per category, the company can refine the value proposition and structurally improve the strategy. Tip, print the model on a large piece of paper and simply proceed to fill per surface based on a brainstorming session.

About the author

Edwin Muilwijk

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