Skip to content Skip to footer

Business Model Canvas

HomeGlossary: Specialized Terms on Innovation and...Business Model Canvas
Close
Key takeaways: Key takeaways: The Business Model Canvas is a strategic management tool for visualizing and developing business models. It divides every business model into nine building blocks – from…

Table of Contents

Definition

The Business Model Canvas (BMC) is a framework developed by Alexander Osterwalder for the structured representation of a business model on a single page. It enables teams to capture all essential aspects of a company – from value creation to cost structure – at a glance and systematically develop them further.

The 9 Building Blocks of the Business Model Canvas

The Canvas divides every business model into nine central fields:

  1. Value Propositions – What unique benefits do you offer your customers?
  2. Customer Segments – For whom do you create value? Which target groups do you serve?
  3. Channels – How do you reach your customers? Which touchpoints do you use?
  4. Customer Relationships – What kind of relationship does each customer segment expect?
  5. Revenue Streams – What do your customers pay for? Which pricing model do you use?
  6. Key Resources – Which assets are indispensable for your business model?
  7. Key Activities – Which processes are critical for success?
  8. Key Partnerships – Who are your most important partners and suppliers?
  9. Cost Structure – What costs arise and what are the biggest cost drivers?

Practical Application

The Business Model Canvas is used in various contexts:

At Point of New, we use the Business Model Canvas as a central tool in our innovation workshops. It forms the basis for systematic business model innovation.

Benefits for SMEs

  • Simplicity – Complex business models are reduced to one page
  • Teamwork – Creating a common understanding within the management team
  • Rapid Iteration – Changes and variants can be quickly simulated
  • Holistic View – All nine dimensions are considered simultaneously
  • Communication – Ideal for investor presentations and pitch decks

Business Model Canvas vs. Lean Canvas

While the Business Model Canvas is designed for established companies and comprehensive business model analysis, the Lean Canvas (by Ash Maurya) focuses more on problem-solving and rapid validation – ideal for startups and early business ideas.

Both frameworks complement each other: the BMC for strategic overall analysis, the Lean Canvas for rapid hypothesis testing with MVP approaches.

How to Use the Business Model Canvas

  1. As-is Analysis – Document the current business model on the Canvas
  2. Identify Weaknesses – Which building blocks have the greatest potential for improvement?
  3. Develop Alternatives – Use business model patterns as inspiration
  4. Prioritize – Select the most promising variants
  5. Test – Validate hypotheses with an MVP in the market

Book a Business Model Canvas Workshop?

Point of New conducts practice-oriented workshops using the Business Model Canvas – for SMEs that want to systematically develop their business model further.

Discover Our Services →

Frequently Asked Questions (FAQ)

What is the Business Model Canvas?

The Business Model Canvas is a strategic framework by Alexander Osterwalder that breaks down a business model into nine building blocks and visualizes them on a single page. It helps companies understand, communicate, and systematically develop their business logic.

Who is the Business Model Canvas suitable for?

The BMC is suitable for companies of all sizes: from startups defining their first business model to established SMEs looking to innovate their existing model. It is particularly valuable in innovation workshops and strategic planning processes.

What is the difference between Business Model Canvas and Lean Canvas?

The Business Model Canvas offers comprehensive business model analysis with a focus on partnerships and resources. The Lean Canvas replaces some fields with problem, solution, and unfair advantage – ideal for the early validation phase of startups.

How long does a Business Model Canvas workshop take?

An intensive BMC workshop typically lasts half to a full day. For a complete business model innovation, we recommend a multi-stage process over 2-4 workshops.

Can I use the Business Model Canvas for an existing company or only for startups?
The Business Model Canvas works equally well for existing companies and startups. Many established SMEs use it to visualize their current business model, identify weaknesses, or develop new revenue streams. It's particularly valuable when you're considering strategic changes or entering new markets, as it helps you compare different business model scenarios side-by-side.

Related Terms

Further reading