Swiss Alex Osterwalder wrote in his doctoral home owner database thesis at HEC Lausanne, and Yves Pigneur wrote the Business Model Generation, or simply Canvas. This methodology created in 2000 has already been used by large companies such as Apple and is based on the principle of co-creating business models, through the analysis of the main elements that make up an organization. Thus, it is a strategic planning tool that allows the development and drafting of new or existing business models.
What is Canvas?
It is a pre-formatted visual map containing nine blocks of the business model. Being in the format of a chart, it allows a more precise analysis of the business model that is being created, remodeled or adapted. Thus, it is based on visual thinking, that is, the use of drawings to represent situations or ideas.
Furthermore, this methodology makes it possible to describe and think about the business model of the entrepreneur's organization, its competitors or any other company. Therefore, it is important that the location of the canvas is large enough for everyone to view and analyze it in the best possible way. Another important factor is the collaboration of the Canvas management group, after all, it is a methodology structured on cooperation and teamwork.
The Nine Blocks of Canvas
Two people writing their Canvas on a piece of paper.
The Canvas is separated into 9 blocks, which are considered essential for a business.
1. Value proposition on Canvas
First, the value proposition consists of what your company will offer to the market that will actually be of value to customers. The important thing is that your proposal has value for your target audience! It is necessary that your differentiator is clear, that the proposal has something that makes it unique, so that it stands out from the competition.
2. Customer segment
This topic represents which segments/types of customers will be your company's focus. Precisely because there are different segments, one tip is to focus on a specific market niche, more specifically your company's target audience.
3. Channels
Furthermore, channels are how the customer buys and receives your product and service. These are marketing strategies and means of communication with the customer, such as social networks.
4. Customer relationship
Customer relationships are how your company relates to each customer segment. This relationship can be based on human interaction, which makes contact more personal. It can also be the customer who is responsible for serving themselves. Or it can be an automated system.
5. Key activities
They translate into what are the essential activities to be able to deliver the value proposition.
6. Key Features
Key resources are the resources needed to perform key activities. The key resources on your Canvas may vary depending on your business plan. For example, in the industrial sector, the key resource is physical, which is machinery, and in the service sector, it is people, i.e. human resources.
7. Key partnerships
Core partnerships are key activities performed outsourced and key resources acquired outside the company;
8. Sources of income
This block consists of ways to generate revenue through value propositions. Some examples are: rent, subscription fees, brokerage, product sales, service provision, etc. This is when you should structure a financial organization .
