This work shortly introduces into the concept of the business model canvas by introducing its buikding blocks, showing their interconnectedness and introducing their characteristics and guiding questions respectively.
Table of Contents
1 THE BASIC IDEA OF THE BMC
2 THE BUILDING BLOCKS OF THE BMC
Objectives and Topics
This paper aims to provide a structured overview of the Business Model Canvas (BMC) framework as developed by Osterwalder, Pigneur, and Clark. It explores how this tool serves as a shared language for entrepreneurs to describe, analyze, and refine business models during feasibility studies.
- Definition and rationale of the Business Model Canvas
- Structural breakdown of the nine core building blocks
- Interdependencies between business model components
- Application of the BMC for strategic assessment
- Methodological use of questions for business model evaluation
Excerpt from the Book
2 The building blocks of the BMC
The BMC consists of the following nine building blocks (Osterwalder et al. 2010, pp. 16 - 17):
1. Customer Segments
2. Value Propositions
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partnerships
9. Cost Structure
The topics are numbered on the BMC in a particular order in which they establish the idea, the business and influence each other. The order and the basic description of each building block can be seen in figure 1.
However, one basic criticism about the BMC is that although it does show the interdependences of neighboring blocks, it is just a static view of potential business models. It does not show how one block changes because of changes in another block. For that purpose, practitioners would have to reconsider every block again after making changes to one initial building block and discuss these changes and occurring impacts. Osterwalder et al. propose the use of a printed version in combination with sticky notes to do so (pp. 42 – 46).
Each building block can be further analyzed by underlying characteristics or expressions which are shown non-exhaustively in figure 2.
Summary of Chapters
1 THE BASIC IDEA OF THE BMC: This chapter defines the fundamental rationale of a business model and explains why a shared conceptual language is essential for evaluating business ideas.
2 THE BUILDING BLOCKS OF THE BMC: This section details the nine specific components of the canvas, explains their structural interdependence, and addresses the challenge of its static nature.
Keywords
Business Model Canvas, BMC, Osterwalder, Pigneur, Clark, Business Model Generation, Feasibility Studies, Entrepreneurship, Value Proposition, Customer Segments, Cost Structure, Revenue Streams, Strategic Management, Business Modeling, Innovation
Frequently Asked Questions
What is the core focus of this document?
This paper serves as a descriptive analysis of the Business Model Canvas (BMC), focusing on its utility as a framework for entrepreneurs to map out their business ventures.
What are the primary themes discussed?
The paper covers the definition of business models, the structural layout of the nine BMC building blocks, and the practical application of these blocks in a strategic context.
What is the main objective of the work?
The objective is to provide a clear understanding of the BMC as a diagnostic and development tool for feasibility studies.
What methodology is employed by the author?
The author uses a literature-based approach, synthesizing the concepts presented in the seminal work "Business Model Generation" by Osterwalder et al.
What topics are covered in the main section?
The main part of the text breaks down the nine building blocks, examines the logical order of these blocks, and discusses how to handle the static nature of the model using iterative practices.
Which keywords best characterize this work?
Key terms include Business Model Canvas, Value Proposition, Feasibility Studies, and Business Model Generation.
What is the limitation of the Business Model Canvas mentioned in the text?
A primary criticism is that the BMC provides a static snapshot of a business model, making it difficult to visualize the dynamic impacts that changes in one block have on others.
How do the authors suggest overcoming the static nature of the BMC?
The authors recommend using a printed version of the canvas in combination with sticky notes to allow for the easy discussion and reconsideration of impacts when changes are made to individual blocks.
- Arbeit zitieren
- Felix Zappe (Autor:in), 2017, The Business Model Canvas as a mean for feasibility studies, München, GRIN Verlag, https://www.grin.com/document/358192
