Use Business Model Canvas to define your strategy
4th of November, 2021
A new model for the development of your business allows you to identify and define key elements of your strategy on one page.
Why use the Business Model Canvas? The advantage of this model is that it is:
- Easy to use
- Focused
- Flexible
- Customer Focused - the value you create and deliver for your customers
- Shows Connections and Interrelationship
- Easy to view, review, refresh and update.
- Easy to communicate
The model develops your strategy by a step-by-step review of your business in nine “blocks” of detail;
- Customer Segments – who are your customers? Which segments do you serve?
- Value Proposition – the value you deliver to each customer segment. Why do your customers buy from you? The needs you fulfil; the problems you solve; the gain you provide?
- Channels – how do you reach your customers? How are your products/services are found, purchased, and delivered? Do you use your own channel or others?
- Customer Relationships – how do you get, keep, and grow your customers? To understand this, you must walk through the entire customer journey and experience in detail.
- Revenue Streams – how does your business earn money? What strategy will you use to gain the most value from your customers?
- Key Resources – what unique, strategic resources does your business have, or does it need? What are your most important assets? Human, Physical, Intangible, your IP (Technological and/or Intellectual), Financial.
- Key Activities - what unique, strategic activities does your business perform to deliver your value proposition? What are the important activities you must do to make the business model work?
- Key Partners – what non key activities can you outsource to enable you to focus more on your key activities? The tasks and activities that are important but which you will not do yourself. Your suppliers, subcontractors, and partners.
- Cost Structure – what are the major costs incurred by your business? List your key costs and ensure that they are aligned to your value proposition.
If you want to develop a new or updated business strategy using this model, please contact us.
