Business model is an essential tool to innovate the company and to improve company performance. It’s required for start-ups and companies needing a thorough activity review. Business model describes how an organization creates, distributes and captures value.
The nine basic elements of the Canvas:
- Customer segments – An organization is aimed to one or more customer segments
- Value proposition – Try to solve customer problems and meet their needs
- Channels – The value proposition showed up to customers through distribution and sales communication channels
- Customer Relationship – Relationships are established and maintained with each customer segment
- Revenue Streams – They result from the value offered to customers successfully
- Key Resources – These are the assets needed to offer and distribute the value offer
- Key Activity – Main processes and activities of the organization
- Partnership – Activities outsourced and resources acquired outside the company
- Cost Structure – It defines all the costs and expenses that your company will incur while operating your business model.