Unit 8 Innovation: Deep Dive into Business Model Canvas (BMC)

This document provides a comprehensive overview of the Business Model Canvas (BMC), a strategic management and entrepreneurial tool developed by Alexander Osterwalder and Yves Pigneur. It breaks down the BMC into its nine key building blocks: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams. The report explains each component in detail, highlighting their importance in developing and analyzing business models for both startups and existing organizations. It also emphasizes the benefits of using the BMC, such as improving organizational performance, fine-tuning value propositions, and making clear decisions. The document concludes by mentioning the power of brainstorming sessions using the BMC and provides a list of relevant references. This report is a valuable resource for students and professionals seeking to understand and apply the BMC in their business endeavors.

Unit 8: Innovation and
Commercialization
Lecture 8
Unit Leader: Mohammad Rahman 1

Business Model Canvas (BMC)
Unit Leader: Mr Syed 2

Business Model Canvas (BM
• Background:
• The Business Model Canvas was developed by the Swiss
business model guru Alexander Osterwalder and management
Information Systems professor Yves Pigneur Yves .
• They defined nine categories for the Business Model Canvas
which they refer to as the building blocks of an organization.
Unit Leader: Mohammad Rahman 3

What is the Business Model C
The Business Model Canvas or BMC model is a graphic
representation of a number of variables that show the values of an
organization.
The Business Model Canvas can be deployed as a strategy tool for
The development of a new organization. Furthermore, it also
analyses the (business) situation of an existing business.
Unit Leader: Mohammad Rahman 4

The Building Block Are:
• Key partners
• Key activities
• Key resources
• Value propositions
• Customer relationships
• Channels
• Customer segments
• Cost structure
• Revenue streams
Unit Leader: Mohammad Rahman 5

Business Model Canvas
The performance of an existing organization can easily be improved
using the Business Model Canvas. All company aspects are made
clear at a glance because of the visual aspect.
By looking at the developments per category, an organization can
fine-tune its value proposition and structurally improve its strategy.
When setting up a new company clear decisions can be made in
advance using the Business Model Canvas.
Unit Leader: Mohammad Rahman 6

Business Model Canvas
Unit Leader: Mohammad Rahman 7

Key Partners:
• For both start-up organizations and existing organizations it may be
important to create alliances with partners.
• For instance when fighting the competition and combining
knowledge and specialization.
• Essential information will be acquired by knowing in advance which
partners may constitute a valuable relationship.
Unit Leader: Mohammad Rahman 8

Key Activities:
• By having a good knowledge of the core activities of a company,
a good understanding of the value proposition of the
organization will be obtained. It is not just about production, but
also about a problem-solving approach, networking and the
quality of the product and/or service.
• When the organization knows what the added value for the
customer is, a better relationship may develop with existing
customers, which may be helpful in the canvassing of new
customers therefore, and which makes it easier to keep the
competition at bay.
Unit Leader: Mohammad Rahman 9

Key Resources:
• Resources are means that a company needs to perform. They can
be categorized as physical, intellectual, financial or human
resources. Physical resources may include assets such as business
equipment.
• Intellectual resources include among other things knowledge,
brands and patents. The financial resources are related to funds
flow and sources of income and human resources comprises the
staffing aspect.
Unit Leader: Mohammad Rahman 10

Value Propositions:
• The value proposition is about the core of a company’s right to
exist, it meets the customer’s need.
• How does an organization distinguish itself from the
competition?
• This distinction focuses on quantity such as price, service, speed
and delivery conditions on the one hand, and on the other hand
it also focuses on quality including design, brand status and
customer experience and satisfaction.
Unit Leader: Mohammad Rahman 11

Customer Relationsh
• It is essential to interact with customers. The broader the customer
base the more important it is to divide your customers into different
target groups. Each customer group has specific needs.
• By anticipating the customer needs, the organization invests in
different customers. A good service will ensure good and stable
customer relationships that will be ensured in the future.
Unit Leader: Mohammad Rahman 12