9 Building Blocks in Business Model

What is Business Model Canvas?

Business Model Canvas: used to describe, challenge, design and invent business models more systematically.
Business Model: the simplified representation of business logic. It describes the rationale of how an organization creates, deliver and captures value.


Business Model includes nine basic building blocks.

9 building blocks	Description
Customer segments:	Customers comprise the heart of any business model
Value propositions:	The reason why customers turn to one company over another
Channels:	Customer touch points that play an important role in the customer experience
Customer relationships:	Deeply influence the overall customer experience
Revenue stream:	For what value is each customer segment truly willing to pay?
Key resources:	The most important assets required to make a business model work
Key activities:	The most important actions a company must take to operate successfully
Key partnerships:	Create alliances to optimize their business models, reduce risk or acquire resources
Cost structure:	The most important costs incurred while operating under a particular business model