Remember how you felt when you first started drawing your first Value Stream Maps? Well that’s how I felt when I first got my hands on Business Model Generation by Alexander Osterwalder, and Yves Pigneur. This is a new visual tool you can use to help connect your value propositions to your customers and suppliers. The Business Model Generation is an easy to use and very powerful diagramming method, or canvas, with nine blocks:
- Key partners
- Key activities
- Key resources
- Value proposition
- Customer relationships
- Channels
- Customer segments
- Cost structure
- Revenue stream
The canvas help you think about how you plan to make money or deliver value by understanding what customer value and how that value is created.
For more on business models and business model innovation take a look at Business Model Generation, for examples of business model canvas’ of companies you maybe be familiar with. Also check out Business Model Alchemist by Alexander Osterwalder.