Over the years I have settled on the basic framework of the Business Model Canvas as a tool for defining and challenging an organisation’s business model. This (slightly modified interpretation) takes you through a structured process of looking into:
- 1. Customers: Who are our most important customer segments we are creating value for?
- 1a. Relationships: What type of relationship does each segment expect us to have?
- 1b. Channels: With which channels do customers want us to use?
- 2. Value Propositions: What value do we deliver to our customers?
- 2a. Key Activities: What activities deliver real value?
- 2b. Key Resources: What key resources are required?
- 2c. Key Partners: Who do we need to partner with?
- 3. Revenue is earned from: What revenues from where?
- 3a. Key Costs: What costs and, will the business model be profitable?
- 4. Annual Calendar: What happens month to month?
- 4a. Annual Budget: What is expected to happen financially?
- 4b. Targets: How do we know the business model has been successful?