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Business Model Canvas

Created by ex-McKinsey, Deloitte & BCG Management Consultants.
What is the purpose of a Business Model Canvas?

A Business Model describes the rationale of how an organization creates, delivers and captures value.
A Business Model Canvas is a strategic management and lean tool that will help you develop new business models or
improve existing ones. It includes 9 building blocks, which were initially proposed in 2005 by Alexander Osterwalder:
1. Key Partners
2. Key Activities Feasibility: Can the company deliver its products & services?
3. Key Resources
4. Value Propositions
5. Customer Relationships
Desirability: Is there a customer demand for the company’s products & services?
6. Channels
7. Customer Segments
8. Cost Structure
Viability: Can the company be profitable?
9. Revenue Stream

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Best practices to effectively use the Business Model Canvas

When we use the Business Model Canvas with our clients, we usually like to organize workshops with key stakeholders.
The most common mistake we’ve noticed over the years is when a CEO only invites the Corporate & Business Strategy
team to the workshops. The stakeholders need to come from different functions such as Corporate & Business Strategy,
Finance, Sales, Marketing, etc. That way your Business Model will be designed or refined based on many different
perspectives. Besides, the different functions will feel better engaged. And the more they feel engaged, the better they
will commit to the implementation of the Business Model.
We usually print on the wall a version of the Business Model Canvas (see next slide) in extra large (e.g. A1), so groups of
people can jointly start sketching and discussing business model elements with post-it notes or board markers. Many of
our clients also like to simply project the Business Model Canvas on a big screen using Powepoint, with one person
responsible for writing the stakeholders’ inputs in real time. When available, we also like to use an interactive display
whiteboard such as Google Jamboard. Interactive display whiteboards are great tools, especially when you have
stakeholders attending your workshop online, which seems to be increasingly the case.
Please note that defining your business model should be an iterative process, that will be refined along the way. The first
version of your business model will include many hypotheses. The idea is to test these hypotheses in order to quickly
validate or invalidate these hypotheses. Start by testing the most critical hypotheses.

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Business Model Canvas
Tutorial
Key Partners Key Activities
• List the key partners that will • List the most important
help you optimize your activities required to implement
operations, reduce your risks, the company's value
and get a competitive proposition.
advantage.
Key Resources
• List the resources that are
necessary to create value for
your customers. These
resources could be human,
financial, physical and
intellectual.
Cost Structure
• Estimate how much you are planning to spend on Product development, Marketing,
Sales, Website design & development, etc.
Value Propositions
• Define the problem you are
trying to solve, or the needs
you are trying to meet.
• List the products and services
you offer to solve the problem
or meet the needs of your
customers.
• Also include in this section your
unique selling proposition
(USP) that will distinguish you
from your competitors.
Revenue Stream
• Estimate how much you are planning to earn from your different sources of revenue.
• Estimate your earnings based on your costs and revenues.
Caption: Feasibility Desirability Viability
Customer Relationships Customer Segments
• Identify the type of relationship • Identify which customers you
you want to create with your try to serve (e.g. age, gender,
customer segments. How will location, interests, languages,
you interact with them? habits, etc.).
Channels
• List the different channels you
will be using to deliver your
value proposition to your
targeted customers. An
organization can reach its
clients through its own
channels, partner channels, or
a combination of both.
Business Model Canvas for [insert company name or logo] Caption: Feasibility Desirability Viability
Template
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

• Insert your own text • Insert your own text • Insert your own text • Insert your own text • Insert your own text
• Insert your own text • Insert your own text • Insert your own text • Insert your own text • Insert your own text
• Insert your own text • Insert your own text • Insert your own text • Insert your own text • Insert your own text

Key Resources Channels

• Insert your own text • Insert your own text

• Insert your own text • Insert your own text
• Insert your own text • Insert your own text

Cost Structure Revenue Stream

• Insert your own text • Insert your own text

• Insert your own text • Insert your own text
• Insert your own text • Insert your own text
Business Model Canvas for
Real-life example
Key Partners
• People who sell on the
platform.
• Bloggers who earn a
commission for any referrals
that lead to a sale.
• Independent authors who
publish their works through
Kindle Direct Publishing.
• Companies providing storage
spaces.
Cost Structure
• IT structure.
• Customer service centre.
• Software development & maintenance and information security.
• • Amazon Web Services: a low-cost complete IT structure platform
Marketing.
• Fulfilment centres.
Key Activities
• Development, maintenance and
expansion of its platform.
• Management of the entire
supply chain
• Cloud computing
• Production of films, series from
its video platform
• Marketing all its products and
services.
Key Resources
• Its technological infrastructure,
which needs to be broad and
very secure, in order to keep
the whole chain running without
interruption and without losses
• Offices and warehouses
• Human resources (e.g.
designers, engineers,
developers etc.)
Value Propositions Customer Relationships
• Jeff Bezos defines that • Amazon’s focus is to have a
Amazon’s business model is healthy and long-lasting
based on three value relationship with its customers.
propositions: low price, fast • They maintain several
delivery and a wide selection of communication channels open
products. with their consumers, such as
reviews and comments on the
platform, phone, online chat
and email contact.
Channels
• The Amazon website is its
largest and most important
channel.
• As an internet-based company,
its marketing is basically digital,
including advertisements,
sponsored publications and e-
mail marketing.
Revenue Stream
• Amazon Marketplace: Amazon asks for a fee from its sellers
• Amazon Prime: subscribers have access to videos, music, and a free two-day shipping
• Amazon Kindle: Users can buy, browse and download books, magazines & newspapers
• Amazon Advertising, which offers sponsored ads
Real-life example
Customer Segments
• The customer segments of
Amazon can be divided into
basically three groups: sellers,
buyers and developers.
• Sellers are all the companies
that use the Amazon’s e-
commerce platform to sell their
products.
• Developers are all the
community involved with the
Amazon Web Services (AWS).
• And the buyers are the millions
of people across the world who
acquire products and services
through Amazon’s channels.
Amazon tracks its customers
based on some characteristics,
such as interest, engagement
and personal information (age,
gender, geographical space,
language, among others).
Thanks for your attention!

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