The document outlines the Business Model Canvas, a strategic management template used to describe, design, challenge, and pivot business models. It contains nine blocks that describe key parts of a business model: key partners, key activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. An example is provided that maps these elements for the online photo sharing platform Flickr, owned by Yahoo.

1. The Business Model Canvas
Day Month Year
On:
Designed for: Designed by:
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Who are our Key Partners? What Key Activities do our Value What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? propositions require? Which one of our customer’s problems are Segments expect us to establish and maintain with them?
Which Key Resources are we acquiring from partners? we helping to solve? Who are our most important customers?
Our Distribution Channels? Which ones have we established?
Which Key Activities do partners perform? Customer Relationships? What bundles of products and services are
motivations for partnerships:
Optimization and economy
Revenue streams? we offering to each Customer Segment? How are they integrated with the rest of our business model? Mass Market
Niche Market
Reduction of risk and uncertainty
How costly are they?
Segmented
Which customer needs are we satisfying?
Acquisition of particular resources and activities categories
Production
Multi-sided Platform
Problem Solving
Platform/Network
characteristics examples
Newness Personal assistance
Performance Dedicated Personal Assistance
Customization Self-Service
“Getting the Job Done” Automated Services
Design Communities
Brand/Status Co-creation
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
Key Resources Channels
What Key Resources do our Value Through which Channels do our Customer Segments
Propositions require? want to be reached?
Our Distribution Channels? Customer Relationships? How are we reaching them now?
Revenue Streams? How are our Channels integrated?
Which ones work best?
types of resources
Physical
Intellectual (brand patents, copyrights, data) Which ones are most cost-efficient?
Human
Financial
How are we integrating them with customer routines?
channel phases:
1. Awareness
How do we raise awareness about our company’s products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support?
Cost Structure $ Revenue Streams $
What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
Which Key Resources are most expensive? For what do they currently pay?
Which Key Activities are most expensive? How are they currently paying?
How would they prefer to pay?
is your business more:
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven ( focused on value creation, premium value proposition)
How much does each Revenue Stream contribute to overall revenues?
sample characteristics:
Fixed Costs (salaries, rents, utilities)
types: dynamic pricing
Variable costs
Asset sale List Price Negotiation( bargaining)
Economies of scale
Usage fee Product feature dependent Yield Management
Economies of scope
Subscription Fees Customer segment dependent Real-time-Market
Lending/Renting/Leasing Volume dependent
Licensing
Brokerage fees
Advertising
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2. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Platform Mass customized
Yahoo! management Casual users
Free Basic Switching costs
Photosharing
High volume users
Key Resources Channels
Premium
Flickr Platform Photosharing Flickr.com
Brand
Yahoo.com
Cost Structure $ Revenue Streams $
Storage costs Free limited Basic Accounts
Annual subscription Pro Accounts
www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

3. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Artistic development Star performers Focus on families
Animal care Animal shows Focus on theater &
opera visitors
Multiple show arenas
Fun & humour
Key Resources Thrill & danger Channels
Animals
Star performers Theme
Refined environment Refined environment
Artistic music & dance
Unique venue
Cost Structure $ Revenue Streams $
Costly animal maintenance Ticket price increase
Costly star performers fees Aisle concession sales
Artistic production
www.businessmodelgeneration.com
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.