Business Model Canvas is a strategic management tool to describe the different elements of business model.
The Business Model Canvas or BMC model is a graphic representation of a number of variables that show the building blocks of an organization or concept. The BMC can be used to analyze the current situation of an existing business or be deployed as a strategy tool for the development of a new organization or service concept.
The BMC was created in 2010 by Alexander Osterwalder and Y. Pigneur Y.
“A business model describes the rationale of how an organization creates, delivers, and captures value.”*
1.START: State the selected “How Might We” statement.
2.IDENTIFY: Based on your HMW statement define the criteria and select the suitable participants.
3.PREPARE: Organize a meeting with the selected participants, and prepare the results of the idea filtering by printing out the handful of ideas in cards or Post-its (visual way) as well as personal, journey and system maps. Gather the necessary resources and supplies. Print enough BMCs in A3 or bigger. Alternatively, draw it on whiteboard. Think about what expectations will be set up-front, how you will start and end the workshop, and how much time participants are expected to dedicate to this activity.
4.CONDUCT: Pass out pens and Post-its to everyone and give each group of 4 a large printed BMC, or draw it on the whiteboard, on which to stick Post-its. Show to everyone how the Business Model Canvas works in 2 minutes, https://youtu.be/QoAOzMTLP5s. Then:
- Start with ‘USER SEGMENTS’: Who are the users? What do they think? See? Feel? Do?
- Then, work on the ‘VALUE PROPOSITIONS’: What’s compelling about the service proposition? Why do users buy, use?
- Now is time to think about ‘CHANNELS’: How are these propositions promoted, sold and delivered? Why? Is it working?
- ‘USER RELATIONSHIPS’ are next: How do you interact with the user through their ‘journey’?
- ‘REVENUE STREAMS’: How does the service earn revenue from the value propositions?
- ‘KEY ACTIVITIES’: What uniquely strategic things does the service do to deliver its proposition?
- ‘KEY RESOURCES’: What unique strategic assets must the service have to compete?
- ‘KEY PARTNERSHIPS’: What can the service not do, so it can focus on its key activities?
- Finally think of the ‘COST STRUCTURE’: What are the service’s major cost drivers? How are they linked to revenue?
5.REPORT: Analyze data, discuss the results and write up the key outcomes from this exercise.
PREPARATION: up to 15 minutes
DESIGN PHASE: Creation
DURATION: 45-60 minutes
TEMPLATE OR GUIDELINES: Business Model Canvas
FACILITATORS: 1 per workshop
RESOURCES: Pens, Post-its, a large sheet of paper or whiteboard
PARTICIPANTS: 3–30, design team, partners, community members, etc.
EXPECTED OUTCOME: Concept validation