Business and Process Models

The Business Canvas Model¹ is a simple and elegant description that allows us to have valuable discussions around business models. A joint understanding is the basis needed to describe, challenge, change or even invent business models in our organizations. It is fundamental in empowering us to move from ad-hoc business model innovation to systematic business model innovation.

Yesterday’s world was about choosing among a set of possible business models. Today’s and tomorrow’s world increasingly require the ability to generate new strategic alternatives in the form of innovative business models. This requires a set of creative methods and tools.

Based on a shared language we can easily describe business models and manipulate them in order to create new strategic alternatives. Without such a shared concept it is nearly impossible to systematically challenge one’s business model and innovate.

The Business Canvas is a business model that can be described through nine basic building blocks that describe the logic of how a company intends to make money. In fact, it represents a blueprint of a company’s strategy that is then implemented through organizational structures, processes and system.

The Business Canvas model describes the way you intend to make money by creating and delivering value and it can be described by the nine basic building blocks:

• value proposition
• client segments
• distribution channels
• client relationships
• key resources
• key activities
• partner network
• cost structure
• revenue flows

¹Based on the Ph.D. thesis of Alex Osterwalder and his successful publication of a book entitled "Business Model Generation - a handbook for visionaries, game changers and challengers" 2009.