Business Model Canvas Blueprint

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1.3.3 Business Model Canvas Blueprint 1.0

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Download the Business Model Canvas (BMC) Blueprint designed by Osterwalder, A & Pigneur, Y (2010) provides a ‘business model’ on a page, identifying the nine (9) elements of an Organisation’s business model, describing the firm’s value proposition, infrastructure, customer and finances. 

The Business Model Canvas (BMC) was developed by Professor Yves Pigneur and Dr Alexander Osterwalder, which was based on Osterwalder’ PhD thesis (1) is a template used to identify the key components of an Organisation’s business model.

The BCM is touted as a ‘business on a page’, as it provides on a single page, a conceptual view of the business model components. 

The BCM is best suited for startups or new businesses, or where the Organisation is undecided about its business strategy, and wants to develop one.

The BCM provides two dimensions, or ‘levels’ when developing the business model – a conceptual level, and a logical level:

At a Conceptual level:

  • The BCM has 9 components – components the authors consider ‘conceptually’ necessary as discussed above, that a business should consider in its mission to create value (i.e. create and sell its products and services that customers want or need at a profit – the margin between the revenue received less the cost of goods sold, and the cost to maintain the business, shown across the bottom of the canvas),  and
 

At a Logical level:

  •  Given you have identified conceptually each of the above 9 components of the BCM, and therefore your ‘business model’, the next question is ‘how do they ‘logically’ fit together in practice? You don’t actually know, not at this point. You then need to test this concept (or ‘hypothesis’ as Osterwalder at el. call it) that the 9 conceptual parts, do they logically fit and work together, and form a viable business model (i.e. could you generate the revenue you expect, with the product and service you will sell, having the key relationships in place, to provide those products/services to your target market using your key activities, to sell it at a profit)?

How to use this blueprint:

The BMC  provides the ability to visualise the key components, that according to the authors should exist. Those key components are as follows:

Value Propositions

  • What are you producing (product or service) to meet a demand or need the that market is willing and able to pay?

Customer Segments

  • What market or (customer) segments are you targeting?

Channels

  • How are you delivering your product or service to your customers?

Customer Relationships

  • How are you going to attract and keep your customers?

Revenue Streams

  • What methods are you going to use to sell your products and services (e.g. direct sales, freemium, licensing etc. )?

Resources

  • What resources do you need to produce and market your products and services?

Key Partners

  • What partnerships (ie buyers, suppliers etc.) do you need to deliver your products and services?

Key Activities

  • What key activities do you need to do (important activities you need to do to ensure your business runs efficiency)?

Cost Structure

  • What are the cost of the different elements you pay for to run your business (i.e. materials, rent, payroll etc.)?

The idea is to test those hypothesis in the market, like a pilot or MVP in business transformation, on a sample or small subset of your market, to get a ‘finger in the air’ i.e. check the temperature that ‘you are on to something’. 

The key: the more vigorous the tests, the more confidence in the ‘model’.

Speakers:

Speakers:

Speaker

Heath Gascoigne
CEO & Founder, HOBA TECH

Get the Blueprint Now!

1.3.3 Business Model Canvas Blueprint 1.0

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