A few days ago I’ve read an article from the external blog about Canvas Business Model and it’s influence on success of any business.It caught my attention and I’ve decided to dedicate the whole article to develop this topic on my own blog. What do we know about Business Model Canvas? Why is it so important to use it in company’s strategy? Both ‘old’, successful organizations and beginners in apply Canvas Model in their work process, because it helps them to see companies’ future development paths and the best model they can start with accordingly. There are 9 most important elements in traditional Business Model Canvas:

 

1. Value Proposition: the product/service, its features/benefits/uniqueness/opportunities and competition in the market;

2. Customer Segments: who the customer is and what problems the product solves;

3. Channels: how company plans to distribute and sell its product;

4. Customer Relationships: how company will create demand;

5. Cost Structure: the fixed and variable costs required to operate business;

6. Key Activities: the tasks the company must perform to succeed;

7. Key Resources: suppliers, commodities, or other essential elements of the business;

8. Key Partners: other enterprises essential to success of the business;

9. Revenue Streams: revenue and profit sources and size.

Overall, BMC (Business Model Canvas) helps to understand connections between most important sectors of the company. A good and detailed BMC could be a perfect navigator for a firm. Business, which is able to understand the causation between decisions in one sphere and consequences in another, has more chances to stand out among all competitors and, finally, reach success.