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Visual tools used to design business models, made popular by the Business Model Generation book by Alex Oxterwalder and Yves Pigneur. KEY PARTNERS:  Businesses, institutions and professional who?s existence is necessary or important for the development of the business model. VALUE PROPOSITIONS: Are the characteristics of a company?s products and services which meet the needs of its customers while also providing differentiation over the competition. KEY ACTIVITES: Collective important activities used to develop the business plan, utilizing the key resources to generate the value proposition, presentation to clients and establish necessary relationships. CHANNELS:  Express the forms in which the value proposition is presented to the client, both directly and indirectly including support such as pre-sale and post-sale (which play a vital role in the value proposition).
REVENUE STREAMS: Ways in which the company can generate revenue through the value chain for each customer segment. If you would like to learn more about each individual section, we recommend reading the original book, “Business Model Generation”, as well as attending one of the many events and seminars the group offers worldwide. With Plan Presto, creating canvases based on the “Business Model Canvas” is easy, simply go to the Visual Tools for Entrepreneurs explorer and you are ready to get started. Export the canvas in PDF or image formats, along with being able to print various sizes without losing quality.
Key Activities: What uniquely strategic things does the business do to deliver its proposition? The first time you engage with the canvas, I recommend printing it out or projecting it on a whiteboard and going to town (see below for a PDF). If you’d like a little more structure, the link below will take you to a related curriculum item that has workshop slides, prep.
Output: a list of Personas, organized by Customer Segment if you have more than one segment. For example, at Leonid, an enterprise software company I founded, we thought our largest customers worked with us because of the cost savings we offered and our knowledge about best practices. Channels includes entities you use to communicate your proposition to your segments, as well as entities through which you sell product and later service customers (see AIDAOR journey below). Output: a list of important Channels, linked to Personas or Segments if they differ substantially. Notes: Channels and the next item, Customer Relationships, define your interface with the Customer. Another consideration is whether your channels will give you enough visibility into the user, including, for example, a way to follow up with users. Output: a description of Customer Relationships, with notes if they differ across Customers (between Segments or among Personas within a Segment) or across the customer journey.
These are the crucial things the business needs to do to deliver on its propositions and make the rest of the business work- for example, if selling through 3rd parties is part of the model, then activity around channel management is probably pretty important. For a product-driven business, this probably includes ongoing learning about users and new techniques to build better product. Key resources are the strategic assets you need in place, and you need in place to a greater or more targeted degree than your competitors.
Infrastructure-driven businesses achieve economies of scale in a specific, highly repeatable area. At this point, hopefully the Canvas has helped you sharpen and articulate your business’ focal points.
You’ve worked to understand how your Key Activities drive your propositions and hence your revenue. Output: a list of Cost Structure elements with notes on their relationship to Key Activities. The canvas does a good job of helping you figure out your business, which is a good place to start. Every business is a work in progress (sorry, I try to avoid saying things like that but it seemed to fit here). You’re looking for a more end-to-end view of how to design the venture- customer discovery, Lean-style experimentation, product design, product development. The Venture Design materials provide a more comprehensive view of how to approach a new product or venture.
You’re looking for a systematic way to organize your work on the venture over a period of weeks.
Probably the most key thing here is that I set it up so you edit the list of Canvas items (Segments, Relationships, etc.) in the Slide Master. One popular view of the canvas is in the three parts shown below- a) the offering b) customers and c) infrastructure. If you’ve updated the canvas elements with the items you want (for the moment at least) then I would lock (using the padlock icon) all those layers. This next layer allows you to color code the various elements against a legend (which you can create at the bottom of the diagram).

You’ll need to use shapes, lines and (possibly magnets) to manipulate this diagram substantially. Magnets are attachment points on shapes- pretty much everything in the application has them. Yet another notes on lines and the circles: If you have multiple propositions mapping to the same customer segment, you mind find the visual explanation clearer if you make all the lines the same color. If you’re more clever than me with Omnigraffle (I know there are quite a lot of you out there!) or just more clear in general, please post your comments here. I prefer (and generally recommend) penciling out competitive dynamics using Porter’s Five Forces.
One of the most common failure modes for good design is trying to do too many things in one place (and that certainly includes instruction and I’m always guarding myself on this!). I find that for my purposes this fits better than Ash’s Lean Canvas model as that makes more sense if you are at start up phase.
It would benefit if you gave some more examples from different branches (Norton Antivirus, Uber, AirBnB, Microsoft, VW etc…) of bigger firms to get a better understanding. There are also a variety of digital tools that help you track your work on the Business Model Canvas and other related canvases. Usually, the value chain tends to determine the groups based on the company?s business model (different levels of relationships, various distribution channels, and various revenue streams).
It has a fairly easy to use layering environment which you may find handy as you want to tinker with and produce different views of the canvas. If you have a multi-sided market you’ll have at least as many segments as you have sides.
I recommend trying to prioritize them- Who would you pitch first if you could only pitch one? What is unique about your Value Propositions and why does your customer prefer them to their Current Alternatives? It turned out that was mostly wrong- reducing their time and risk to get new services to market was the most important. If you’re not sure, that’s OK and good for you for acknowledging the uncertainty!
For example, if you sell bulbs for light houses and there’s a website all light house attendants purchase equipment, that site is a sales Channel. Also, the focal items are in a kind of specific order- you should validate your Segments and their relationship to the Propositions above all else.
At this point, you may want to step back and look at the picture you’ve created about your Offering and Customers.
The Business Model Canvas proposes that there are three core business types: product, scope, and infrastructure.
For example, if you started a business that would take care of all the IT needs for law firms, that would be a scope-driven business. The Honest Company or another innovating around compostable or otherwise more environmentally friendly diapers would be a product-driven take on the category. What Activities and Resources are important but not aligned with what’s uniquely strategy for you? It’s organized around agile-style iterations which you can size according to your pace. This will help you think about what you need to build from a functional perspective so you can look at the available technology objectively and make strategic design decisions. This will give you a framework to use in partnership evaluations and a supplemental example. If you have a gmail account, you can access it (no guarantees- that was the case last time I checked). These layers are set to be visible and editable in the Omnigraffle template you just downloaded. That’s my personal preference- most of the diagrams that follow are about focus and clarity.
The top section has a series of buttons you select between to manipulate fill, lines, shapes, shadows (if you roll that way), images, and text. They can make the lines a little hard to go where you want- you may find they keep being drawn to a place you don’t want them to go. The idea here is to map the key assumptions attached to the various parts of your business model and pair those assumptions quick and inexpensive experiments which will allow you to quickly validate or invalidate the assumptions. I think it’s helpful to see the elements with the assumptions and experiments next to them if you can make all that fit. I’ve done a bit of work using the canvas with several startups, one limitation I find though is that the competitive view is often either totally missing or is buried inside one of the other boxes (implicit in Value Proposition, very often).
However, it wasn’t all premised on long-term competitive advantage and I think it remains a good, rigorous, yet highly accessible way to think through competitive dynamics.

I think the overall view of competitive advantage is still important for looking at cost drivers and catalysts that are shaping the operating environment at large. I work with established companies who have lost their way and think that this model is a good back to basics. Really liked the way you mapped the elements with each other, which further helped in better understanding of the concept. Think about ways to test whether your proposition is really better enough than the alternatives they have today to cause them to buy it from you. For most businesses, the way they get a customer’s attention is different than the way they onboard them or support them over the long term.
Document your assumptions Lean Startup style and figure out how you’ll quickly prove or disprove them. For an infrastructure business (ex: electric utility), it probably includes keeping the infrastructure working reliably and making it more efficient.
Key Resources in product-driven businesses are typically key talent in critical areas of expertise and accumulated intellectual property related to their offering. These businesses typically have key knowledge about their segment, a repeatable set of processes, and sometimes infrastructure, like service centers. Retailers focused on retail, like Walgreens or Costco, are primarily infrastructure-driven businesses. This is a way to denote which specific Partners are handling various Key Activities for you. If you prefer a more comprehensive introduction, they have a pretty good set of intro videos. Also the way you extended the canvas template to Google doc, explaining each step is highly commendable. I try to transition from explanations to examples to templates so readers can easily apply what they see.
Thanks for your comment- at that critical moment when I need to get to those examples, this will help remind me! The only suggestion that I would make would be to throw in an example to work through, like a lemonade stand. When I use the Canvas in my Venture Design classes, we usually spend all of the first session (plus time for field research) on Customer Segments and Value Propositions.
When you’re getting going with this, jot them all done on a whiteboard, index card, Post-It, etc.
That made a difference on how we sold the product and how we focused on operationalizing it for customers.
The key is to write down those assumptions, prioritize them, and figure out the quickest and cheapest way to prove or disprove them. If you use a third party company to service the bulbs when they break, that’s also a Channel.
For this, I recommend the AIDA.OR framework (attention-interest-desire-action-onboarding-retention) and storyboarding your way through it.
The Key Resources for this type of business are, you guessed it, various types of physical or virtual infrastructure. Kimberly-Clark (wood pulp) or DuPont (chemicals and polymers) are both infrastructure-based takes: diapers is just another way to sell something they produce at scale with relatively little differentiation. But in this case it’s a good way to achieve some rudimentary layering, allowing you to do show things on top of the Canvas without having to recopy all the elements. You may want to categorize various parts of the business for any number of reasons- things you do now vs. This will keep the line for anchoring to other objects which is what you want if it keeps veering off to a place you don’t like.
You’ll want to be able to clearly link your Value Propositions back to these in the next section.
Another note on layers: If you goof up (I do a lot), moving things from one layer to another is easy but a little (to me) non-obvious.
If, for example, you want to change the color of one of these lines, you’ll need to use the Inspector to update the fill color of the circle and the line color of the line. What things do you do that actually cause a customer to pick you over a competitor or alternative? If you don’t want to do the storyboards, I recommend at least making notes about your customer journey through the AIDA(OR) steps.
What you need to do is copy or cut whatever it is you want to move and then before you paste, make sure the layer you want the content to land on is the one under edit (that it has the pencil showing) which you can do by click to the left of the layer.

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