Macro-Design · 2-4 hour workshops

Business Model Canvas

A strategic management tool that provides a visual template for developing, documenting, and pivoting business models. It allows teams to describe how an organization creates, delivers, and captures value through nine interconnected building blocks.

When to use Business Model Canvas

Ideal for strategic planning sessions, new product development, or when a team needs to pivot their current operational approach.

How Business Model Canvas works

Facilitators can use this as a collaborative mapping tool to align stakeholders on the 'big picture' of a project or program, ensuring that the instructional solution supports the broader organizational strategy.

Phases of Business Model Canvas

  1. Customer Segments: Define the groups of people or organizations the business aims to reach and serve. Teams list and prioritize segments on sticky notes, often starting here so every other block is built around a specific customer.
  2. Value Propositions: Describe the bundle of products and services that creates value for each segment by solving problems or meeting needs. Teams link each proposition to a segment and test whether it addresses a real job, pain or gain.
  3. Channels: Capture how the business communicates with and reaches customers to deliver the value proposition, from awareness to after-sales. Teams map the touchpoints across the customer journey for each segment.
  4. Customer Relationships: Describe the type of relationship established with each segment, such as personal assistance, self-service, community or automation. Teams decide what each segment expects and what it costs to provide.
  5. Revenue Streams: Identify how the business earns money from each segment and through which pricing mechanisms. Teams note what customers are willing to pay for and how, such as subscriptions, usage fees or licensing.
  6. Key Activities: List the most important things the business must do to make the model work. Teams name the activities needed to deliver the value proposition, run channels, maintain relationships and earn revenue.
  7. Key Resources: Identify the most important assets required, whether physical, intellectual, human or financial. Teams check which resources the value proposition, channels and relationships depend on.
  8. Key Partners: Describe the network of suppliers and partners that make the model work, and why each is needed. Teams mark which activities or resources are sourced from partners to reduce risk or cost.
  9. Cost Structure: Capture all major costs incurred to operate the model, driven by key resources, activities and partners. Teams list the biggest cost drivers and check the model against revenue streams for viability.

Key principles

  • Visual Thinking
  • Systems Thinking
  • Shared Language
  • Customer-Centricity

Best for

  • Strategic Alignment
  • Business Model Innovation
  • Stakeholder Management

Considerations

  • Requires cross-functional input for accuracy
  • Can become overly complex if not facilitated with a focus on high-level strategy

Attribution & sources

Developed by Alexander Osterwalder and Yves Pigneur

Primary source

Design a session with Business Model Canvas

METODIC builds a complete Business Model Canvas-based session — methods, timing, worksheets, and facilitator guides — in minutes.

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