Alexander Oster alder, a very famous author and business theorist from Swiss presented many advanced concepts of business modeling among which his Business Model Canvas is marketed in all times. After his successful work, many new canvases appeared about the different niche that solved diverse problems in categories of business. Business model canvas is basically a template used by business and organizations to either develop a new business model from scratch or amend the already existing models. It gives a pictorial format to the people to analyze the infrastructure, offerings, customers and other details of a firm or product. Oster alder took account of various business models and came up with a single reference model. It then becomes easy for the businesses to refer to it and devise a model for their own organization.
Using a business model canvas is both creative and effective. It allows the people to put a hand on it and discuss, analyze and create business elements. Board markers come in handy while discussing and a group of people shares their ideas on board. Since it is easy and attractive method thus it gained popularity and organizations start using it for various purposes. Mostly Business Model Canvas is used in scenarios like cash flow, product market fit, supply chain and internal communications.
A standard Business Model Canvas includes the infrastructure that defines the key elements such as the resources required to carry out the task whether it be financial resource, human resource or physical. It also includes the activities to be carried out to complete your project and your key partners in it. Furthermore, the Business Model Canvas gives detailed explanations about the potential customer of your industry. It also describes the offerings to them. It is very important part of the model canvas as the CRM (Customer relationship management) is based on it. It is essential for any company or organization to meet the demands of its potential customers to survive in the industry for the long term, therefore the offering section of Business Model Canvas is very important. The value of it can be qualitative like the price or efficiency of a business or quantitative like the experience of the customer with your industry. Finally, the model describes the finances as well. This portion describes all kinds of cost structures included in this specific business deal.
Any organization or business who is going to develop a model can easily refer to this Business Model Canvas because it contains all necessary points one would encounter in starting a new model. It is also available in software form making it easier for organizations for reference in many business scenarios.
The picture above shows how a standard business model canvas l>he necessary points discussed. It is a template and therefore people may follow a template that bests suits their organization and needs depending on their project. Similarly, a person may alter the template with slight changes according to the standards followed by his business or organization.