hero-img1

BA Techniques: Business Model Canvas

0 Comments

Purpose: 

A Business Model Canvas describes how an enterprise creates, delivers, and captures value for and from its customers.

Business Analysis Body of Knowledge® (BABOK®) 

The Business Model Canvas was developed by Swiss business model guru Alexander Osterwalder in 2005 based on his earlier work on business model ontology. It is a  strategic management and a lean start up for developing new or documenting existing business models. It is a visual chart with elements describing the products value proposition, infrastructure, customers, and finances. It assists the firms in aligning their activities by illustrating potential trade-offs. The business model design consists of the nine building blocks such as key partners, key activities, key resources, value proposition, customer relationships, channels, customer segments, cost structure, revenue stream. With the business model design an enterprise can easily describes it business model.

Business Model Canvas (BMC) is a graphic representation of number of variables that show values of an organization. The performance of an existing organization can easily be improved by business model canvas. An organization can fine tune its value proposition and structurally improve their strategy by looking at the developments of the company per category used in BMC. When setting up a new company clear decisions can be made in advance using the business model canvas. It will lead to the insights of the customers you serve, what value propositions are offered through what channels, and how the company makes money. It is shared language for describing, visualizing, assessing and changing business model.

Some of the articles related to Business Model Canvas techniques are as follows,

The business model canvas template consists of nine main building blocks. Based on that template, the BMC works. It consists of key partner, which is the companies or people works with to create a strategic relationship. Key activities are specific activities or tasks that are fundamental for the operation of business. Key resources are the assets necessary to operate and deliver the value proposition. The Value Proposition is the primary driver of business operation, which determine the fundamental offering of the company trying to give its customers. The customer relationship are the different types of interactions a company has with its customers. The channels are the different structures and methods that are used to deliver company’s product and value proposition to its customers. The cost structure describes how a company spends money on its operations and the revenue streams are the company’s source of cash flows.

Some of the tools used in the industry for Business Model Canvas are,

  • Visual Paradigm
  • io
  • Canvanizer
  • Strategyzer
  • BM Designer
  • Business Model fiddle

 

Some of the books and magazines for Business Model Canvas techniques,

Written by Bharath Ravi

Business Consultant whose qualification includes a Bachelor’s degree in the field of Mechanical specialized in Automobile & Manufacturing; Trained in Certified Supply Chain Professional (CSCP) Certification, Hands on Foundation Certificate in Business Analysis, BCS (UK) and Certified Professional for Requirements Engineering (CPRE-FL).

Leave a Reply

    Growth Is Just One Click Away

    Don't feel like calling? Just share some details about your SOP Requirements & Fhyzics representative will get in touch with you. Schedule A Meeting with our Manager [Consulting & Certifications]