Business model canvas framework
The Business Model Canvas is a strategic tool that visualizes nine essential building blocks of any business on a single page.
Conceptualized by Alexander Osterwalder, it includes:
- Value proposition
- Customer segments
- Channels
- Customer relationships
- Revenue streams
- Key resources
- Key activities
- Key partners
- Cost structure[1]
All building blocks are interconnected, meaning changes to one element affect the others. For example, modifying your value proposition may require different key resources or activities to deliver your product. This interconnectedness helps businesses think holistically about their model and understand how each component supports the whole.
The BMC's simplicity makes it popular among entrepreneurs, startups, and established businesses for identifying crucial aspects of their business model. Product managers use it to align decisions with strategy, test assumptions, and communicate plans effectively to stakeholders.
