The Business Model Canvas is a tool to help you get a better understanding of your own business. It is also a way to get a shared framework of reference inside the organization. The tool enables you to discuss and create possibilities for your business development in a structured way. When known more broadly in an organization it also becomes a strong communication tool. It is simply a way to connect your strategy to the way you do business. The tool is described by Alexnder Osterwalder and Yves Pigneur in there book called Business Model Generation.
Shortly described the Business Model Canvas is a universal tool that can be used in any industry or business. The beauty is it is its simplicity that can contain the complex structures that sometimes arise when you are dealing with companies that has grown into containing many departments. Still it is also brilliant for smaller or midsize companies. As you can see in the above drawing the Business Model canvas consists of nine blocks and by those nine blocks you end up describing your business in key terms. When I have worked with it I normally let the group create a Business Model Canvas describing today (the AS-IS) and later on when people are comfortable with the tool several ideas are generated to finally form the TO-BE vision. The process gives both give the participants a firm idea of how their own business is structured and a picture of what initiatives they need to perform to actually make the TO-BE vision there AS-IS Business Model Canvas
Business Model Generation – a Handbook for Visionaries, Game Changers, and Challengers
Written by Alexander Osterwalder and Yves Pigneur
Published by John Wiley & Sons, New Jersey 2010