business-model-canvas

What this skill does

# Business Model Canvas

Design and analyze business models using Osterwalder's Business Model Canvas and Lean Canvas. Creates structured 9-block canvases for business model innovation, startup validation, and strategic planning.

## What is a Business Model Canvas?

A **Business Model Canvas (BMC)** is a strategic management template for developing new or documenting existing business models. It's a visual chart describing a firm's value proposition, infrastructure, customers, and finances.

| Aspect | Business Model Canvas | Lean Canvas |
|--------|----------------------|-------------|
| **Creator** | Alexander Osterwalder | Ash Maurya |
| **Focus** | Established businesses | Startups, early-stage |
| **Emphasis** | Value creation & delivery | Problem-solution fit |
| **Key Difference** | Key Partners, Key Resources | Problem, Solution, Unfair Advantage |

## The 9 Building Blocks

### Business Model Canvas Blocks

```text
┌─────────────────┬─────────────────┬─────────────────┬─────────────────┬─────────────────┐
│ Key Partners    │ Key Activities  │ Value           │ Customer        │ Customer        │
│                 │                 │ Propositions    │ Relationships   │ Segments        │
│ Who helps us?   │ What do we do?  │                 │                 │                 │
│                 │                 │ What value do   │ How do we       │ Who do we       │
│                 ├─────────────────┤ we deliver?     │ interact?       │ serve?          │
│                 │ Key Resources   │                 │                 │                 │
│                 │                 │                 ├─────────────────┤                 │
│                 │ What do we      │                 │ Channels        │                 │
│                 │ need?           │                 │                 │                 │
│                 │                 │                 │ How do we       │                 │
│                 │                 │                 │ reach them?     │                 │
├─────────────────┴─────────────────┴─────────────────┴─────────────────┴─────────────────┤
│ Cost Structure                                      │ Revenue Streams                   │
│ What does it cost?                                  │ How do we earn?                   │
└─────────────────────────────────────────────────────┴───────────────────────────────────┘
```

### Block Definitions

| Block | Question | Examples |
|-------|----------|----------|
| **Customer Segments** | Who are our most important customers? | Mass market, Niche, Segmented, Diversified |
| **Value Propositions** | What value do we deliver? What problems do we solve? | Newness, Performance, Customization, Price |
| **Channels** | How do we reach and deliver to customers? | Direct, Indirect, Own, Partner |
| **Customer Relationships** | How do we interact with each segment? | Personal, Automated, Self-service, Communities |
| **Revenue Streams** | How does each segment pay? | Asset sale, Subscription, Licensing, Advertising |
| **Key Resources** | What do we need to deliver our value proposition? | Physical, Intellectual, Human, Financial |
| **Key Activities** | What must we do well? | Production, Problem Solving, Platform/Network |
| **Key Partnerships** | Who helps us? | Strategic alliances, Suppliers, Joint ventures |
| **Cost Structure** | What are our major costs? | Fixed, Variable, Economies of scale/scope |

## Workflow

### Phase 1: Preparation

#### Step 1: Define Context

```markdown
## Canvas Context

**Organization:** [Company / Product / Initiative]
**Purpose:** [New business / Innovation / Documentation / Pivot]
**Scope:** [Entire business / Product line / Service]
**Date:** [ISO date]
**Facilitator:** canvas-facilitator
```

#### Step 2: Gather Inputs

Before filling the canvas:

- Existing business plans, strategy documents
- Customer research, personas
- Competitive analysis
- Financial data (if documenting existing model)

### Phase 2: Fill the Canvas (Right to Left)

Start with Customer Segments (demand side), then move to Value Proposition and infrastructure (supply side).

#### Step 1: Customer Segments

```markdown
## Customer Segments

| Segment | Description | Size | Priority |
|---------|-------------|------|----------|
| [Name] | [Who are they? Demographics, needs] | [Market size] | Primary/Secondary |

**Questions to answer:**
- For whom are we creating value?
- Who are our most important customers?
- What are their jobs-to-be-done?
```

##### Segment Types

| Type | Description | Example |
|------|-------------|---------|
| **Mass Market** | Large group, similar needs | Consumer electronics |
| **Niche Market** | Specialized, specific needs | Luxury goods |
| **Segmented** | Distinct segments, related needs | Banks (retail vs wealth) |
| **Diversified** | Unrelated segments | Amazon (retail + AWS) |
| **Multi-sided** | Interdependent segments | Platforms (users + advertisers) |

#### Step 2: Value Propositions

```markdown
## Value Propositions

| Segment | Value Proposition | Type | Differentiation |
|---------|-------------------|------|-----------------|
| [Segment] | [What value delivered?] | [Type] | [Why us over competitors?] |

**Questions to answer:**
- What value do we deliver to each segment?
- Which customer problems are we solving?
- What bundles of products/services do we offer?
```

##### Value Proposition Types

| Type | Description |
|------|-------------|
| **Newness** | New, previously unavailable |
| **Performance** | Better performance |
| **Customization** | Tailored to needs |
| **Getting the Job Done** | Helps complete a task |
| **Design** | Superior design |
| **Brand/Status** | Status or brand value |
| **Price** | Lower price |
| **Cost Reduction** | Reduces customer costs |
| **Risk Reduction** | Reduces customer risks |
| **Accessibility** | Makes available to new users |
| **Convenience** | Easier to use |

#### Step 3: Channels

```markdown
## Channels

| Phase | Channel | Type | Effectiveness |
|-------|---------|------|---------------|
| Awareness | [How do customers learn about us?] | Own/Partner | High/Med/Low |
| Evaluation | [How do they evaluate?] | Own/Partner | High/Med/Low |
| Purchase | [How do they buy?] | Own/Partner | High/Med/Low |
| Delivery | [How do we deliver?] | Own/Partner | High/Med/Low |
| After Sales | [How do we support?] | Own/Partner | High/Med/Low |
```

#### Step 4: Customer Relationships

```markdown
## Customer Relationships

| Segment | Relationship Type | Purpose | Cost |
|---------|-------------------|---------|------|
| [Segment] | [Type] | Acquisition/Retention/Upselling | High/Med/Low |
```

##### Relationship Types

| Type | Description |
|------|-------------|
| **Personal Assistance** | Human interaction |
| **Dedicated Personal** | Specific rep assigned |
| **Self-Service** | No direct relationship |
| **Automated Services** | Automated personalization |
| **Communities** | User communities |
| **Co-creation** | Customers help create value |

#### Step 5: Revenue Streams

```markdown
## Revenue Streams

| Segment | Revenue Type | Pricing Model | % of Revenue |
|---------|--------------|---------------|--------------|
| [Segment] | [Type] | Fixed/Dynamic | [Percentage] |
```

##### Revenue Types

| Type | Description | Pricing |
|------|-------------|---------|
| **Asset Sale** | Selling ownership rights | List price, Volume, Negotiation |
| **Usage Fee** | Pay per use | Per unit, Tiered |
| **Subscription** | Recurring payment | Monthly, Annual |
| **Lending/Renting** | Temporary access | Time-based |
| **Licensing** | Permission to use IP | Per license, Royalty |
| **Brokerage** | Intermediation fee | Commission |
| **Advertising** | Display ads | CPM, CPC, CPA |

#### Step 6: Key Resources

```markdown
## Key Resources

| Resource | Category | Source | Strategic Importance |
|----------|----------|--------|---------------------|
| [Resource] | Physical/IP/Human/Financi