Business Model Canvas (BMC)

The Business Model Canvas (BMC) is a strategic management and entrepreneurial tool that allows teams to describe, design, challenge, invent, and pivot their business model. The BMC is composed of nine building blocks outlined below.

 

  • Customer Segments. This building block defines the different groups of people or organizations an enterprise aims to reach and serve.
  • Value Propositions. This block describes the bundle of products and services that create value for a specific customer segment. Value propositions are delivered to customers through communication, distribution and sales channels.
  • Channels. This block describes how a company communicates with and reaches its customer segments to deliver value propositions.
  • Customer Relationships. Customer relationships are established and maintained with each customer segment. This block describes the types of relationships a company establishes with specific customer segments.
  • Revenue Streams. Revenue streams result from value propositions successfully offered to customers. This block represents the cash a company generates from each customer segment – costs must be subtracted from revenues to create earnings.
  • Key Resources. Key resources are the assets required to make a business model work.
  • Key Activities. These work by performing a number of key activities. This block describes the most important things a company must do to make its business model work.
  • Key Partnerships. Some activities are outsourced and some resources are acquired outside the enterprise. This block describes the network of suppliers and partners that make the business model work.
  • Cost Structure. The business model elements result in the cost structure.

 

 

Business Model Canvas

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What participants say about the BMC:

"I see real potential in asking all innovators to run through [the BMC] exercise prior to spending significant resources in creating their innovation..."

"I think it's dead-on in terms of looking at elements to consider for innovations."

"The opportunities to learn the Business Model Canvas, interact with the instructional team members, and discover our start up scenario, have been incredibly worthwhile. All faculty who engage in research/funded activities should know this…"

"Learning to apply business concepts to learning innovations was precious!"