Business Model Canvas: Explained with Examples

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Got a new business idea, but don’t know how to put it to work? Want to improve your existing business model? Overwhelmed by writing your business plan? There is a one-page technique that can provide you the solution you are looking for, and that’s the business model canvas.

In this guide, you’ll have the Business Model Canvas explained, along with steps on how to create one. All business model canvas examples in the post can be edited online.

What is a Business Model Canvas

A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing. And the business model canvas lets you define these different components on a single page.   

The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a one-page document containing nine boxes that represent different fundamental elements of a business.  

The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to understand the different core elements of a business.

The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left side of the canvas focuses on the business (internal factors that are mostly under your control). In the middle, you get the value propositions that represent the exchange of value between your business and your customers.

The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘ Business Model Generation ’ as a visual framework for planning, developing and testing the business model(s) of an organization.

Business Model Canvas Explained

What Are the Benefits of Using a Business Model Canvas

Why do you need a business model canvas? The answer is simple. The business model canvas offers several benefits for businesses and entrepreneurs. It is a valuable tool and provides a visual and structured approach to designing, analyzing, optimizing, and communicating your business model.

  • The business model canvas provides a comprehensive overview of a business model’s essential aspects. The BMC provides a quick outline of the business model and is devoid of unnecessary details compared to the traditional business plan.
  • The comprehensive overview also ensures that the team considers all required components of their business model and can identify gaps or areas for improvement.
  • The BMC allows the team to have a holistic and shared understanding of the business model while enabling them to align and collaborate effectively.
  • The visual nature of the business model canvas makes it easier to refer to and understand by anyone. The business model canvas combines all vital business model elements in a single, easy-to-understand canvas.
  • The BMC can be considered a strategic analysis tool as it enables you to examine a business model’s strengths, weaknesses, opportunities, and challenges.
  • It’s easier to edit and can be easily shared with employees and stakeholders.
  • The BMC is a flexible and adaptable tool that can be updated and revised as the business evolves. Keep your business agile and responsive to market changes and customer needs.
  • The business model canvas can be used by large corporations and startups with just a few employees.
  • The business model canvas effectively facilitates discussions among team members, investors, partners, customers, and other stakeholders. It clarifies how different aspects of the business are related and ensures a shared understanding of the business model.
  • You can use a BMC template to facilitate discussions and guide brainstorming brainstorming sessions to generate insights and ideas to refine the business model and make strategic decisions.
  • The BMC is action-oriented, encouraging businesses to identify activities and initiatives to improve their business model to drive business growth.
  • A business model canvas provides a structured approach for businesses to explore possibilities and experiment with new ideas. This encourages creativity and innovation, which in turn encourages team members to think outside the box.

How to Make a Business Model Canvas

Here’s a step-by-step guide on how to create a business canvas model.

Step 1: Gather your team and the required material Bring a team or a group of people from your company together to collaborate. It is better to bring in a diverse group to cover all aspects.

While you can create a business model canvas with whiteboards, sticky notes, and markers, using an online platform like Creately will ensure that your work can be accessed from anywhere, anytime. Create a workspace in Creately and provide editing/reviewing permission to start.

Step 2: Set the context Clearly define the purpose and the scope of what you want to map out and visualize in the business model canvas. Narrow down the business or idea you want to analyze with the team and its context.

Step 3: Draw the canvas Divide the workspace into nine equal sections to represent the nine building blocks of the business model canvas.

Step 4: Identify the key building blocks Label each section as customer segment, value proposition, channels, customer relationships, revenue streams, key resources, key activities, and cost structure.

Step 5: Fill in the canvas Work with your team to fill in each section of the canvas with relevant information. You can use data, keywords, diagrams, and more to represent ideas and concepts.

Step 6: Analyze and iterate Once your team has filled in the business model canvas, analyze the relationships to identify strengths, weaknesses, opportunities, and challenges. Discuss improvements and make adjustments as necessary.

Step 7: Finalize Finalize and use the model as a visual reference to communicate and align your business model with stakeholders. You can also use the model to make informed and strategic decisions and guide your business.

What are the Key Building Blocks of the Business Model Canvas?

There are nine building blocks in the business model canvas and they are:

Customer Segments

Customer relationships, revenue streams, key activities, key resources, key partners, cost structure.

  • Value Proposition

When filling out a Business Model Canvas, you will brainstorm and conduct research on each of these elements. The data you collect can be placed in each relevant section of the canvas. So have a business model canvas ready when you start the exercise.  

Business Model Canvas Template

Let’s look into what the 9 components of the BMC are in more detail.

These are the groups of people or companies that you are trying to target and sell your product or service to.

Segmenting your customers based on similarities such as geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to better serve their needs, specifically by customizing the solution you are providing them.

After a thorough analysis of your customer segments, you can determine who you should serve and ignore. Then create customer personas for each of the selected customer segments.

Customer Persona Template for Business Model Canvas Explained

There are different customer segments a business model can target and they are;

  • Mass market: A business model that focuses on mass markets doesn’t group its customers into segments. Instead, it focuses on the general population or a large group of people with similar needs. For example, a product like a phone.  
  • Niche market: Here the focus is centered on a specific group of people with unique needs and traits. Here the value propositions, distribution channels, and customer relationships should be customized to meet their specific requirements. An example would be buyers of sports shoes.
  • Segmented: Based on slightly different needs, there could be different groups within the main customer segment. Accordingly, you can create different value propositions, distribution channels, etc. to meet the different needs of these segments.
  • Diversified: A diversified market segment includes customers with very different needs.
  • Multi-sided markets: this includes interdependent customer segments. For example, a credit card company caters to both their credit card holders as well as merchants who accept those cards.

Use STP Model templates for segmenting your market and developing ideal marketing campaigns

Visualize, assess, and update your business model. Collaborate on brainstorming with your team on your next business model innovation.

In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company.

There are several types of customer relationships

  • Personal assistance: you interact with the customer in person or by email, through phone call or other means.
  • Dedicated personal assistance: you assign a dedicated customer representative to an individual customer.  
  • Self-service: here you maintain no relationship with the customer, but provides what the customer needs to help themselves.
  • Automated services: this includes automated processes or machinery that helps customers perform services themselves.
  • Communities: these include online communities where customers can help each other solve their own problems with regard to the product or service.
  • Co-creation: here the company allows the customer to get involved in the designing or development of the product. For example, YouTube has given its users the opportunity to create content for its audience.

You can understand the kind of relationship your customer has with your company through a customer journey map . It will help you identify the different stages your customers go through when interacting with your company. And it will help you make sense of how to acquire, retain and grow your customers.

Customer Journey Map

This block is to describe how your company will communicate with and reach out to your customers. Channels are the touchpoints that let your customers connect with your company.

Channels play a role in raising awareness of your product or service among customers and delivering your value propositions to them. Channels can also be used to allow customers the avenue to buy products or services and offer post-purchase support.

There are two types of channels

  • Owned channels: company website, social media sites, in-house sales, etc.
  • Partner channels: partner-owned websites, wholesale distribution, retail, etc.

Revenues streams are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions.  

A revenue stream can belong to one of the following revenue models,

  • Transaction-based revenue: made from customers who make a one-time payment
  • Recurring revenue: made from ongoing payments for continuing services or post-sale services

There are several ways you can generate revenue from

  • Asset sales: by selling the rights of ownership for a product to a buyer
  • Usage fee: by charging the customer for the use of its product or service
  • Subscription fee: by charging the customer for using its product regularly and consistently
  • Lending/ leasing/ renting: the customer pays to get exclusive rights to use an asset for a fixed period of time
  • Licensing: customer pays to get permission to use the company’s intellectual property
  • Brokerage fees: revenue generated by acting as an intermediary between two or more parties
  • Advertising: by charging the customer to advertise a product, service or brand using company platforms

What are the activities/ tasks that need to be completed to fulfill your business purpose? In this section, you should list down all the key activities you need to do to make your business model work.

These key activities should focus on fulfilling its value proposition, reaching customer segments and maintaining customer relationships, and generating revenue.

There are 3 categories of key activities;

  • Production: designing, manufacturing and delivering a product in significant quantities and/ or of superior quality.
  • Problem-solving: finding new solutions to individual problems faced by customers.
  • Platform/ network: Creating and maintaining platforms. For example, Microsoft provides a reliable operating system to support third-party software products.

This is where you list down which key resources or the main inputs you need to carry out your key activities in order to create your value proposition.

There are several types of key resources and they are

  • Human (employees)
  • Financial (cash, lines of credit, etc.)
  • Intellectual (brand, patents, IP, copyright)
  • Physical (equipment, inventory, buildings)

Key partners are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in oder to reduce risks and acquire resources.

Types of partnerships are

  • Strategic alliance: partnership between non-competitors
  • Coopetition: strategic partnership between partners
  • Joint ventures: partners developing a new business
  • Buyer-supplier relationships: ensure reliable supplies

In this block, you identify all the costs associated with operating your business model.

You’ll need to focus on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and maintaining customer relationships. And this will be easier to do so once you have defined your key resources, activities, and partners.  

Businesses can either be cost-driven (focuses on minimizing costs whenever possible) and value-driven (focuses on providing maximum value to the customer).

Value Propositions

This is the building block that is at the heart of the business model canvas. And it represents your unique solution (product or service) for a problem faced by a customer segment, or that creates value for the customer segment.

A value proposition should be unique or should be different from that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if you are offering a product that already exists in the market, it should stand out with new features and attributes.

Value propositions can be either quantitative (price and speed of service) or qualitative (customer experience or design).

Value Proposition Canvas

What to Avoid When Creating a Business Model Canvas

One thing to remember when creating a business model canvas is that it is a concise and focused document. It is designed to capture key elements of a business model and, as such, should not include detailed information. Some of the items to avoid include,

  • Detailed financial projections such as revenue forecasts, cost breakdowns, and financial ratios. Revenue streams and cost structure should be represented at a high level, providing an overview rather than detailed projections.
  • Detailed operational processes such as standard operating procedures of a business. The BMC focuses on the strategic and conceptual aspects.
  • Comprehensive marketing or sales strategies. The business model canvas does not provide space for comprehensive marketing or sales strategies. These should be included in marketing or sales plans, which allow you to expand into more details.
  • Legal or regulatory details such as intellectual property, licensing agreements, or compliance requirements. As these require more detailed and specialized attention, they are better suited to be addressed in separate legal or regulatory documents.
  • Long-term strategic goals or vision statements. While the canvas helps to align the business model with the overall strategy, it should focus on the immediate and tangible aspects.
  • Irrelevant or unnecessary information that does not directly relate to the business model. Including extra or unnecessary information can clutter the BMC and make it less effective in communicating the core elements.

What Are Your Thoughts on the Business Model Canvas?

Once you have completed your business model canvas, you can share it with your organization and stakeholders and get their feedback as well. The business model canvas is a living document, therefore after completing it you need to revisit and ensure that it is relevant, updated and accurate.

What best practices do you follow when creating a business model canvas? Do share your tips with us in the comments section below.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

FAQs About the Business Model Canvas

  • Use clear and concise language
  • Use visual-aids
  • Customize for your audience
  • Highlight key insights
  • Be open to feedback and discussion

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

The 9-Step Business Model Canvas Explained (2023 Update)

business model canvas for project management

Written by Raquel Alberdi

Business | entrepreneurship, 16 comments(s).

Business Model Canvas

Blog » The 9-Step Business Model Canvas Explained (2023 Update)

business model canvas for project management

“A major mistake made by many start-ups around the world is focusing on the technology, the software, the product, and the design, but neglecting to ever figure out the business . And by “business” we simply mean how the company makes money by acquiring and serving its customers”.

-Reid Hoffman

After meeting with hundreds of entrepreneurs and business owners over the years I believe the LinkedIn co-founder and Blitzscaling author Reid Hoffman’s got it spot on.

People tend to focus on specific parts of their business, such as which software packages are being used, which is the cheapest supplier, how to optimize internal processes…?

They get so bogged down in the details of the day-to-day running that they lose the overall vision of their business.

Without this vision they are unable to scale, they make marginal profits, miss opportunities, struggle to innovate, and end up running “just another” business.

Another handy metaphor in understanding this common mistake is the soldier in the trenches .

Every meter of ground gained comes at a heavy cost, mistakes are made, and progress is hard-fought and slow…a day-to-day experience for 99% of entrepreneurs and businessmen.

But when you do have that 360 vision you see the entire battlefield. Decisions are much clearer, fewer mistakes are made, and progress is fast and methodical.

Fortunately, a business model framework exists that gives you both vision and clarity .

The Business Model Canvas provides entrepreneurs, business owners, and strategists with a tool to analyze, structure, and evolve a business while always keeping the bigger picture front of mind.

So let’s take a closer look at how it works.

Table of Content

What is the Business Model Canvas?

Created by Swiss entrepreneur and Strategyzer co-founder, Alexander Osterwalder, the Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach.

Why is it so popular within the business community?

Its simplicity. The business model canvas allows us to carry out a high-level analysis without drilling down and getting lost in the details. You just draw out the 9 building blocks on a blank canvas, fill them in as each concept relates to your business, and hang it somewhere everybody can see.

It’s a visual overview of your entire business on a single canvas.

While the Business Model Canvas is an extremely fluid concept and hyper-specific to individual companies, each canvas is still broken down into these 9 key building blocks:

Customer Segments

Value propositions, customer relationships, revenue streams, key resources, key activities, key partners.

When laid out on the canvas the model will look something like this:

 Scheme of business model in which 9 important fields are developed for its execution.

While you’ve probably come across each of the 9 building blocks before, the attractiveness of the Business Model Canvas is that it confines them to a single page , not a traditional 42-page document.

This makes it a lot easier to digest, as well as assess existing business models or map out new ideas.

How do I fill out the Business Model Canvas?

To start your Business Model Canvas you will need to breakdown and analyze each of the 9 building blocks.

A good way to approach this is to gather the heads from marketing, sales, operations, finance, and manufacturing (if product-based) and pencil-in a morning where you can all meet together.

Then, after drawing a mock canvas onto a whiteboard, proceed to dissect and discuss each of the 9 building blocks as they relate to your business. You can use sticky notes to better organize your thoughts around the canvas.

If you are an entrepreneur or new business owner working alone and don’t have a team to bounce your ideas off, not to worry. You can still carry out your analysis before sharing it with a like-minded entrepreneurial community or forum, like those found on ThePowerMBA , to get useful, insightful feedback.

Whichever way you decide to approach it, I recommend you complete each block in the following order:

  • Cost structure

For continuity, I’m going to use the fashion retail giant Zara when analyzing each of the 9 key building blocks.

If you’d like to skip to another case study similar to your own business, navigate to the table of contents at the top of the page and select one of the other business model canvas examples.

Customer segment business model canvas for Zara company

The first block of the Business Canvas Model is about understanding who is the most important customer(s) you’re delivering value to. Or, in other words, who are they? What do they do? And why would they buy your product or service?

Not a single company exists without its clients, making customer segments the best block to start with while drawing out your business model canvas.

A great exercise to define your customer segments is to brainstorm and create your company’s buyer persona (s) .

Buyer personas are fictional depictions of an ideal or hypothetical client. Typically when brainstorming a buyer persona you’d want to define certain characteristics (age, demographic, gender, income, industry, pain points, goals, etc.)

However, remember at this stage we want a snapshot of our customer segment. There’s no need to jump into great detail just yet.

In the case of Zara, there are three distinct customer segments to whom they offer different products.

The products created for each of these customer segments (clothing, shoes, and accessories) are not trans-consumable. That is to say, a woman’s dress is highly unlikely to be worn by a 7-year-old child.

Once we know exactly who it is we are targeting, it’s time to look at what we as a company have to offer.

Zara Customer Segments business model canvas template showing the development of the 9 fields

The second phase is about figuring out your company’s value propositions , and importantly, your UVP (unique value proposition). The “what” that makes customers turn to you, over your competitors? Which of their problems are you best at solving?

Each value proposition consists of a bundle of products or services that fulfill the needs of a buyer persona from your customer segment. It’s the intersection between what your company offers, and the reason or impulse customers have for purchasing.

Some popular questions to ask while determining your UVP are:

  • Which specific customer pain point are you trying to solve?
  • What job are you helping customers get done?
  • How does your UVP eliminate customer pain points?
  • What products or services do you provide that answer this specific pain point?

So let’s try and apply this to Zara. Why do people choose to purchase from them, over their competitors?

Zara’s principal value propositions are fairly clear. They offer various ranges of stylish men’s, women’s, and children’s clothing and accessories at an affordable price.

But there’s more to it than that.

If we dive a little deeper we see Zara’s value propositions are more complex, which are behind the success of the brand:

Fast fashion

Zara adds new clothes and designs to its collections every 2-3 weeks, both in its stores and online. It keeps the brand updated, fresh, and modern while maintaining its all-important medium price point

Great eCommerce experience

Once you enter Zara’s online store you’re presented with a clean, easy-to-navigate, and high-end feel. The customer segments are visible on the left navigation bar with a search tab to further aid customers with their online experience.

Zara's Canvas business model where you can see the innovative presentation of its image

Localized stores

You can find a store in nearly all major retail locations (shopping malls, retail outlets, airports, etc.) meaning accessibility is not an issue for the majority of consumers.

Flagship stores

Zara demonstrates its aesthetic evolution to customers through its flagship stores. The recent opening of their Hudson Yards , New York City flagship is a great example of this. Customers shop around its vivid, minimalist layout offering them an experience aligned with the brand’s deeper, eco-friendly values.

Zara's Canvas business model where you can see the innovative presentation of the image of its stores

Zara Hudson Yards, New York

Business Model Canvas Template Zara - Value Propositions

The next step is to ask yourself how you are reaching your customers, and through which channels ?

This includes both the channels that customers want to communicate with you as well as how they’ll receive your products or services.

Is it going to be a physical channel? (store, field sales representatives, etc.) Or is it a digital channel? (mobile, web, cloud, etc.).

Zara has 3 primary channels in which they communicate and deliver products to its customers:

  • Direct sales through their stores
  • Online (both app and website)
  • Social media

Customers can go to a traditional “bricks and mortar” store to browse, model, and purchase different items of clothing at one of their retail stores.

Alternatively, they can shop online or through their mobile application and have the product delivered straight to their door or nearest store. The choice is completely up to them!

So that covers Zara’s commercial channels, but what about how they communicate with customers?

While they do communicate through their mobile app, their predominant channel is social media.

What’s more, they’re really, really good at it.

For example, did you know that Zara invests less than 0.3% of its sales revenue into advertising?

This is only possible due to an A-rated social media presence . Customer queries are not only dealt with quickly, but recommended re-works are sent back to HQ, forwarded onto in-house designers who then apply the feedback to future collections.

This customer-first approach through fluid communication channels has saved them thousands of dollars in marketing, strengthened their brand, and created a loyal customer base.

You should only step away from this building block once you’ve decided how each of your customer segments want to be reached.

Zara Channels business model canvas template where its components are developed

Once you have acquired customers, you will need to think about how you can build , nurture, and grow those relationships.

Now, this can be automated and transactional like large eCommerce brands Amazon or Alibaba. Or, it could be at the complete opposite end of the scale and require a more personal relationship you’d typically have with a bank or your local bike shop.

Zara’s relationship with its customers is threefold, and lies somewhere in the middle of transactional and personal:

  • Salesperson at store
  • Brand through social media
  • Sentimental attachment to a product

Yes, you have the initial transactional touchpoint at the store or online, something relatively impersonal and for many the only interaction they’ll have with the brand.

However, customers (especially in the fashion industry) are encouraged to continue to interact with a brand through social media platforms.

As we mentioned before when discussing channels, Zara has a very effective communication system in place. Not only can people instantly get in touch with the brand, but also engage with new posts, images, and collections uploaded to social media.

This personal approach to customer relationship building can, in some cases, lead to the natural growth of brand ambassadors and communities .

An attachment can also develop between customers and particular garments or accessories from one of their collections. The sentimental attachment to these products also creates another potential form of brand loyalty.

The relations with Zara's clients to give a Business Model Canvas where the 9 points to be developed are seen

Now that you’ve described how you are going to create real value for your customers, it’s time to look at how you plan to capture that value.

What are your revenue streams? Is it going to be a transactional, direct sales strategy ? Are you going to consider a freemium mode l, where you give a portion of your product or service away for free with the idea of converting later on down the line?

If you’re a SaaS company such as SalesForce or Strava , then it’s likely that a licensing or subscription revenue model will be more appropriate.

At Zara, it’s extremely simple. They make their money by selling clothes and accessories either at a store or online.

Zara business model canvas template for the development of Revenue streams within the 9 points to work

As you can see, we’ve filled in the entire right-hand side of our business model canvas. We touched upon:

Customer segments

  • Value propositions
  • Revenue streams
  • Distribution channels

Now it’s time to move over to the left side of the business canvas model and look at what we need, internally , to deliver our value propositions.

Key resources of the Zara Business Model Canvas

To start with, let’s take a look at key resources.

The key resources are all things you need to have, or the assets required to create that value for customers.

This could be anything from intellectual property (patents, trademarks, copyrights, etc.) to physical holdings (factories, offices, delivery vans, etc.) right down to finances (the initial cash flow perhaps needed to start your brand).

Another key resource every company needs to consider is its human capital . Are you going to need highly specialized software engineers? Or field-based sales teams?

They are relatively capital-heavy resources that need to be factored into your business model.

In the case of Zara, they are going to need a number of key resources if they hope to deliver their propositions:

  • Stock management
  • A large, interconnected network of physical stores
  • A strong brand
  • Logistics and supply chain infrastructure

Stock is vital for both online and offline customers.

If they are unable to supply their range of products and meet customer demands, satisfaction levels fall and they have a serious problem on their hands.

A large distribution network of brick and mortar stores combined with a strong brand name help mitigate these factors, as well as reinforce any ongoing marketing activities and communication efforts.

Finally, an efficient logistics process within Zara is critical, especially when you consider the complexities involved with such a large-scale operation.

They will require the necessary technology to analyze data on inventory, storage, materials, production, and packaging, with the staff to execute each of these stages and manage the delivery of the final products.

Zara business model canvas template where the Key Resources are developed

The next step is to define the key activities – the areas you need to be good at to create value for your customers.

To mix it up a little let’s take a look at a slightly different business in Uber .

Their key activities can be broken down into:

  • Web and mobile app development
  • Driver recruitment
  • Marketing: customer acquisition
  • Customer service activities : drivers’ ratings, incidents, etc.

They need a fast, clean UX for their customers using the app, drivers to carry out their service, and the ability to both market the product and deal with any customer queries.

Zara’s key activities will differ to those of Uber. Some of the things they need to consider would be:

  • Manufacturing
  • Retail process (point of sale and 3rd party management)
  • Distribution channel / logistics

Design is a key activity as Zara’s value proposition is to provide stylish garments at an affordable price. Their collections need to be constantly updated to follow the latest fashion trends at the time.

To produce their collections Zara will also require manufacturing capabilities. Now Zara doesn’t own their own factories (we will get to that in the Key Partners section) but they still need to be involved in the garment manufacturing process.

Everything from fabric selection to pattern making, to detailing and dyeing affects the outcome of the final product which of course they have to then go on and sell.

The effective management of the retail and distribution channels (online, offline, shipping, and communication with providers) is also key. A breakdown in either of these activities, such as a poor relationship with an important provider will have serious consequences for the business.

Zara business model canvas template showing the key activities for its development

Most modern business models now require brands to build out and work with various key partners to fully leverage their business model.

This includes partnerships such as joint ventures and non-equity strategic alliances as well as typical relationships with buyers, suppliers, and producers.

A great example of a strategic partnership would be between ThePowerMBA and Forbes . In exchange for exposure of our brand to the magazine’s global audience, we provide expertise and content on high-level business education programs.

As we touched upon when discussing key activities , Zara requires strategic partnerships with many different providers if they are to design and produce their collections.

Another key partner is their major holding company, Inditex .

Inditex has several subsidiaries including Massimo Dutti , Pull & Bear , and Oysho . Being a subsidiary of Inditex means they share a consolidated balance sheet, stakeholders, management and control, and various legal responsibilities.

While as a subsidiary Zara is afforded certain freedoms when it comes to design, delivery, and the general running of the company, the overall strategy will need to be aligned with Inditex and its other subsidiaries.

Zara Key Partners business model canvas template where the eighth point is developed

The final step of the Business Model Canvas is to ask yourself, how much is it going to cost to run this model?

This includes some of the more obvious needs such as manufacturing costs, physical space, rent, payroll, but also areas such as marketing activities.

If you are unsure of exactly what to include in your cost structure take a look at a Profit and Loss statement ( P&L ) from a competitor or company in a similar industry to yours. You’ll find many items overlap such as research and development ( R&D ), cost of goods sold, admin expenses, operating costs, etc.

Once that’s done you should prioritize your key activities and resources and find out if they are fixed or variable costs .

As Zara is such a large, corporate business they are going to have both fixed costs (rent, payroll, point of sales personnel) and variables, such as costs associated with the fluctuating sale of goods, purchase of materials and, manufacturing costs.

Once you’ve completed these 9 steps, your Business Canvas Model should look something like this:

Business Model Canvas Examples

Hopefully, you were able to get a good feel for the effectiveness of the business model canvas with our run-through of Zara.

However, if you found it difficult to follow due to the stark difference between your industries, I’m going to quickly go through 3 more companies to demonstrate the tool’s flexibility:

  • Netflix (Media service/production)
  • Vintae (Vineyard)

Even if these business model canvas examples don’t align exactly with your industry, I honestly believe that studying different models gives you a competitive advantage in your professional career regardless.

If you’re currently employed by a company, you’ll better understand how your specific role helps the company achieve some of its “long-term” goals.

Alternatively, if you are a business owner yourself (or perhaps thinking of starting your own business) you’ll have a better understanding of your business and where potential opportunities lay.

I’m sure you’re familiar with our next business model canvas example candidate, Netflix .

The global media company offers an online streaming service of various movies, documentaries, and TV programs produced in-house or licensed 3rd-party content. Their success sparked a revolution in the online media world with the likes of Amazon, Apple, Disney, HBO, and Hulu all rushing to launch their own online video streaming platforms.

Netflix started life as an online DVD rental company, basically a web version of the more popular (at least at that time) “bricks and mortar” Blockbuster.

Co-founder Reed Hastings predicted as far back as 1999 that the future of media was in online streaming, saying “postage rates were going to keep going up and the internet was going to get twice as fast at half the price every 18 months.”

It wouldn’t be until 2007 that Hasting’s prediction would become true when Netflix, as we now know it, was born.

So let’s take a current look at their business model canvas:

Netflix business model in which the 9 topics are taken into consideration

As you probably know, there are very few people out there who haven’t subscribed, watched, or at least heard of Netflix. There is content for everybody: wildlife documentaries, sci-fi movies, rom coms, action-thrillers, you name it – it’s there.

That’s why their customer segment can be classified as a “ mass market ” as the base is just so diverse.

All people require is a computer, TV, internet, and/or smartphone and they’re good to go. For most developed markets, that covers just about everybody.

Value Proposition

Whether on the train to work, sitting in the car (if you’re not driving!), or relaxing at home in front of the TV, you can consume their online, on-demand video streaming service.

They also have a huge library of content for consumers to choose from, ensuring that people keep coming back, as well as increasing their mass-market appeal.

They also produce high-quality, original content to differentiate themselves from their competitors.

Most people access Netflix either through their website or mobile/TV App . Another popular channel that you may have picked up on is their affiliate partners .

You’ve perhaps signed up for a mobile, TV, and internet package where the provider offers Netflix as an extra to sweeten the deal, so to speak.

That would be an example of an affiliate partnership between Netflix and mobile service providers.

I doubt many consumers have had direct contact with Netflix unless it’s to resolve a subscription issue or general query. It’s very much a self-automated service – you download the app, select the program you wish to watch, and hit play.

Very simple, very effective.

Again, this doesn’t need much embellishment. Netflix generates money from the different tiers and packages put together in their subscription services.

This varies depending on the region to account for local markets, but on the whole, it’s sold at a low price point.

Originally, Netflix’s Key Resources would have been their unrivaled DVD collection combined with a cost-effective mail-order system.

Nowadays it’s undoubtedly the rights to stream online video content. Netflix has brokered deals with some of the biggest production studios worldwide.

Combined with their huge library of in-house productions , it’s more than enough to encourage customers to renew their subscriptions.

To help sustain interest in their product, Netflix understands they need to serve-up relevant content for each sub-sector of their mass audience. Therefore their machine learning algorithm selects content for consumers based on streaming habits (what they watched, at what time, etc,.) to personalize the customer experience.

This explains why over 80% of all content streamed on Netflix was cherry-picked by this algorithm, making it a Key Resource for their business model.

Also, Netflix accounts for a whopping 12.6% of global bandwidth usage . The literal capacity to stream their services must be met meaning bandwidth must also be included here.

Content procurement is arguably their biggest Key Activity. They need to find people to produce and deliver their original content, including actors, studios, writers, etc. as well as secure the licensing and streaming rights from 3rd party producers such as Sony, Warner Bros, and Disney.

Finally, they need a fast, easy-to-use application to host their online streaming service. This needs to be available for both TV and mobile devices if they are to deliver their “on-demand” value proposition.

K ey Partners

Seeing as Netflix’s entire business model is largely based around streaming 3rd party content, key partnerships need to be built with production studios . No content, no Netflix!

Also, as we touched upon earlier Netflix is one of the largest consumers of bandwidth worldwide. If the speed and delivery of their streaming service are to be continued then deals will also need to be made with internet service providers (ISPs).

Netflix’s biggest expenditures come from both their in-house content procurement and 3rd party licensing agreements . The high-quality standard of video streamed on Netflix is only possible due to the speed and performance of its online platform and application , which has additional costs of staff, software, etc.

To show you just how flexible the business model canvas can be, I wanted to throw in a slightly leftfield example. Vintae is a Spanish wine producer who, after a detailed analysis of the business model canvas, was able to innovate and disrupt one of the world’s most competitive industries.

As some of you may know, the wine industry is extremely competitive. It’s also steeped in history and tradition , making it very challenging for newcomers to grab market share, let alone think about year-on-year growth and revenue.

However, CEO “Richi” Arambarri looked at the traditional “ bodega ” business model and saw a chink in its armor.

A “small” innovation in the business canvas model helped them to become one of the region’s most important winery groups, with over 10 installations and a presence across all regional denominations (Rioja, Priorat, Rias Baixas, etc.) with year on year growth of 30% – practically unheard of in such a competitive industry.

So how did Vintae analyze the business model canvas to find a niche in their market?

To answer that question, we must first look at the traditional winery business model .

Traditional Winery Business Model with its 9 developed points

As you can see, the wine industry has historically been patrimonial. Vineyards and estates are passed down through generations with the winery responsible for all phases of production, clarification, and distribution.

The traditional winery business canvas model suggests you must be the owner of the winery/vineyard where the wine is “manufactured”, meaning physical assets are a key resource of the business model.

So, if you wanted to start producing a Rioja, for example, you’d have to set up your vineyard in the region.

This is monumentally expensive as you need to:

  • Purchase the land
  • Plant a vineyard
  • Absorb set-up and installation costs
  • Deal with maintenance costs

It’s here where Vintae saw their opportunity.

What if we move vineyard ownership across the business model canvas from key resources to key partners ?

By leasing the equipment and space of large wineries (of which there was plenty), they could still produce their wine but reduce the cost and exposure associated with land purchase, crushing equipment, huge storage tanks, vineyard maintenance, and their bottling line.

This enabled them to focus on their sales, marketing, and distribution channels to create a better brand experience for their customers.

Also, it afforded them more flexibility when creating new wines as they were no longer confined to the limitations of grapes grown on their vineyard.

The lightness of this new business model eliminates maintenance overheads, channels energy into personalizing the customer experience, and allows for unprecedented levels of growth in one of the world’s most competitive industries.

Vinate business model

Business Model Canvas Software

Although I did mention starting with a large whiteboard, sticky notes, and a pack of colorful sharpies there are several options in which you can digitize the business canvas model production process.

While I still believe the aforementioned process is extremely valuable (it gets your entire team’s input in a single hour-long session) you may decide it more viable for each member of management to pool their ideas digitally before sharing with the rest of the group.

If that’s the case, then take a look at some of the following software tools for creating your business model canvas.

Strategyzer

Created by the founders of the business model canvas Alex Osterwalder and Yves Pigneur , Strategyzer offers a range of business model canvas templates for you to get started with.

If you opt for the paid model (there is a 30-day free trial period) they offer a series of various classes that teach you how to build and test different value propositions and business models.

A real-time built-in cost estimator analyzes the financial viability of some of your business ideas, identifying alternative areas you may wish to explore with your model.

All-in-all, it’s a great resource to play around with and test some of your business ideas, with the option to dive into further detail if you see fit.

Canvanizer is a free, easy-to-use web tool that allows you to share links between team members who are brainstorming ideas for a business model canvas, but working remotely.

Like Strategyzer, there are several business model canvas templates provided to help you get started with your analysis. The strength of this platform is its accessibility. Much like a Google Doc., several people can brainstorm on the same canvas simultaneously with changes being synchronized automatically.

Business Model Canvas Tool

A ThePowerMBA alumni, impressed by the simplicity and effectiveness of the tool, went ahead and created the free application Business Model Canvas Tool .

It’s an incredibly intuitive, and easy-to-use tool that allows you to create templates simply by clicking the + button in each building block.

Each business model canvas created can be downloaded and shared as a pdf. with the rest of the team.

Would You Like to Learn More about Business Models?

If, after going through our 9-step guide on how to use the Business Model Canvas you’d like to learn more about different business model analysis tools , take a look at our alternative MBA business program .

As you’ll see, the course gives students a 360-degree view of business and management practices – such as engines of growth, segmentation and targeting, and value propositions.

I highly recommend you go check it out.

Regardless, I’d love to hear what you thought about this guide. Was it helpful? Would you like to see additional business cases analyzed from your industry?

Let us know in the comments below.

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16 Comments

Ayeah Goodlove

Perfect thought

kourosh abdollahzadeh

I am a DBA student. I have used your site a lot. Thank you for the information

KJ Hwang

Well defined steps, Thanks for good contents.

Reza Ebadi

Dear Sir many thanks for you guideline. it was very effective for me. Thanks a Million

Debashis Rout

Well explained with practical business case

Allen

Wow, this article was incredibly helpful! I’ve heard about the Business Model Canvas before, but I wasn’t sure exactly how it worked or how to use it for my own business.

NIMAKO JAMES

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Opoku Samuel

you’ve done a great job. keep it up

Claudia Roca

This is a very insightful content with a step-by-step practical approach of how to write a BMC and what exactly it should contain.

My team and I literally used your guide to write a BMC for a project we were working on, and in just about an hour we were done.

Thank you so much for this content, it was really helpful.

Franco

Thank you very much Collins and we are glad you are using this tool.

Jude

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Praveen

Thank you very much for the business model example of ZARA. It was very very informative

Efi

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Thank you very much for reading and sharing your comments

Tatyasaheb Phadtare

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  • Saas Business Model (2023) - […] in this material you will learn all about SaaS as a business model. It’s an interesting material that will…
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  • Top 5 Tips For Business Success by Freeduhm Team | Milyin - […] that market and have a chance to make money and become profitable. Additionally, you can use a business model…

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Project Management Docs

Free Project Management Templates

Business Model Canvas Template

A business model canvas outlines the goals and objectives of a business and includes a description of the value proposition, infrastructure, customers, and finances. It also happens to be a great tool for project management.

The Business Model Canvas was created by Alexander Osterwalder to streamline the development of business plans for lean startups competing in a fast-paced marketplace. It replaced dozens of pages of complex business plans with a single page document.

The focus and simplicity of the Business Model Canvas template makes it easier to map out a plan and the visual nature makes it easy to follow.

Download Template

What is a business model canvas.

The Project Management Book of Knowledge (PMBOK) identifies the Business Model Canvas as a strategy artifact.  Strategy artifacts are used to define high level strategies at the beginning of a project.

It outlines the goals and objectives of a business and includes a description of the value proposition, infrastructure, customers, and finances. It also happens to be a great tool for project management.

The Difference Between the Business Model Canvas and the Lean Canvas

You may have heard the term Lean Canvas in regard to the Business Model Canvas. It is designed to accommodate the needs of startup businesses in the very early stages. A few of the boxes on the Lean template are different than those of the original to address the needs of a business idea not fully formed.

It may be helpful to think of it this way, the Lean Artifact is good for startups that are still trying to define themselves. The Business Model Canvas is better if you already have a product and are ready to move forward.

What is the Importance of a Business Model Canvas?

For our purposes, the original Business Model Canvas helps managers focus on what is most important. Because it is concise, it requires project managers to zero in on goals, priorities, and their road map to completion. The simplicity of this one-page template keeps the big picture available for quick reference and a nimble change of course if necessary.

What are the 9 Elements of a Business Model Canvas?

Let’s take a closer look at what belongs in the boxes of this template and where to start. We’ll use the example of an accounting firm that wants to create a customer portal to make life easier for its clients and to attract new clients.

Think of the right side of the template as being “customer facing.” Who will your project serve? What is the goal?  The value proposition is how you will uniquely address the goal to achieve success. The left side deals with what needs to happen internally to deliver on the value proposition. If done correctly, there is accountability in the template.

Let’s say you have a plan to create a customer portal that encourages engagement and long-term relationships with your customers. In answer to that, there will be items listed in the Key Activities box and Cost Structures box that will reflect actions to make that possible.

When used for business startups, the Business Model Canvas starts with filling in the Customer Segments and Value Propositions boxes, as these are at the core of everything else. That may make sense for your project, as well.

  • Customer Segments. Will you have one type of user, or several different types? If your project will serve a fairly large audience, it might be helpful to break the group into segments according to their similarities.

For our example, the customer segment that would use the portal would be one group— small and medium businesses. This group of people is likely juggling many balls at once and may have little to no tax expertise. They will appreciate being able to pass this ball to someone else they can trust to make sure all happens as it should.

  Following the lead of the business community, you may find it helpful to create a persona to represent each segment. The more detailed you get, the easier it may be to create a product that will best serve their needs. Think beyond the typical details such as age, race, income, etc. Think also about what they’re goals may be and the obstacles they face.

  • Value Propositions. This box falls in the middle of the template for a reason. It is the core of the matter. Value propositions are akin to unique selling points. What will set this product or service apart? What benefits are you offering the customer? What problem are you solving for them? Think in terms of gain creators and pain relievers.

  A tax portal for the accounting firm can serve as a one-stop shop for the client. Not only will they have someone monitoring their tax schedule to keep them on track with tax payments, someone to prepare and file their taxes, but they can also have a secure place to store documents should they be needed in the future. And with a customer service piece, they also have a resource should they run into a question concerning their taxes or if they need technical support.

  • How will you acquire users? Will you get them through social media, referrals, or advertising? How will they access your services? Will you strictly use owned channels such as a website. Or will you use partner channels that send business your way?

  Initial users will come from existing clientele, but we will use social media, referrals, and potential partnerships with related businesses to reach new users. The service will be accessed through our website.    

  • Customer Relationships. How do you plan to interact with your customer? Do you want a personal connection? Perhaps an account representative to serve as the touchpoint? Or will you have a general customer service staff to field questions and provide technical guidance? Or do you envision a completely automated process?

Clients will meet with their accountant at least once a year, but they will have the portal to upload information, monitor their account, and access past records. In addition, a customer service/tech support team will answer questions and give guidance on using the website.

  • Revenue Streams. How will the project make money for the business? Will income be generated from one product, subscriptions, or different levels of service with different price points?

  The tax portal will be a value-added benefit for customers. It will help differentiate it from other accounting firms helping to increase market share and allow the business to charge above-market rates.

  • Key Resources. What do you need to fulfill your value proposition? This does not include mundane items. It is meant to capture the essential resources needed.

To launch this service, the firm will need additional programmers, people with certain web expertise as it relates to taxation and integrating the two, and funding to hire them.

In order to cultivate a personal relationship, there is also a need for staff that can provide customer service and tech assistance to users.

  • Key Activities. These are all the tasks and items you need to deliver on the value proposition.

These will include things like the development of new software, making sure there is sufficient data storage, training customer service staff, and announcement of new services to existing and potential customers.  

  • Key Partners. Who are the external buyers and suppliers that are necessary to carry out your key activities? Do they supply raw materials or finished goods? Which are essential? Are there any that could be absorbed internally to save money?

  The tax portal will need a reliable and secure web host. It will also need to integrate with the IRS, and appropriate local tax entities. It may also find additional clients through strategic partnerships such as financial planners.  

  • Cost Structure. This box is easier to fill out after you have completed the other boxes because you’ll know what you have to achieve. You’re looking at big expenses associated with your project. How much does it cost to create and deliver your product or service? Also, what does it cost to maintain customer relations if that is a goal?

The tax portal will need a budget that supports the hiring of numerous web-related positions for the development of the portal. And it will have to account for the ongoing cost of secure storage for an increase highly personal data and tech support staff to help clients use the portal.

  What is a Business Model Canvas Example?

Our free Business Model Canvas template includes questions to guide your thinking (green lettering) and examples of content (black lettering).  This sample template will give you ideas of what to include in yours.

How Do I Make a Business Model Canvas?

Our Business Model Canvas template makes it easy for you to create a canvas for your project. Simply download the template and replace our content with your project information as you work through each box.

Some people like to recreate the canvas on a white board so they can use sticky notes. That makes it easier to work through boxes if you’re doing this as a group.

Example of a Business Model Canvas

Download this template by clicking on the orange “Download Template” button at the top of the page.

IAPM International Association of Project Managers

Business Model Canvas in Project Management

A key and a pair of glasses on a table.

Introduction to the Business Model Canvas

Key factors of the business model canvas, application of the business model canvas in project management, best practices for using the business model canvas in project management.

Business Model Canvas - The IAPM logo

The IAPM certification

The certification can be taken via a reputable online examination procedure. The costs are based on the gross domestic product of your country of origin.

From the IAPM Blog

Become a network official.

Do you want to get involved in project management in your environment and contribute to the further development of project management? Then become active as an IAPM Network Official or as a Network Official of the IAPM Network University. 

business model canvas for project management

The Business Model Canvas

The Business Model Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model. This method from the bestselling management book Business Model Generation is applied in leading organizations and start-ups worldwide.

business model canvas for project management

The Business Model Canvas enables you to:

  • Visualize and communicate a simple story of your existing business model.
  • Use the canvas to design new business models, whether you are a start-up or an existing businessManage a portfolio of business models
  • You can use the canvas to easily juggle between "Explore" and "Exploit" business models.

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Download your free copy of this whitepaper now, explore other examples.

business model canvas for project management

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The Business Model Canvas

Mastering business models

A self-paced online course with 
Alex Osterwalder and Yves Pigneur.

Are you trying to improve your existing business model? Or trying to create a new one that can compete in today’s market?

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Business Model Canvas Template

Determine and align your business priorities in a simple and visual way with the Business Model Canvas Template.

Trusted by 65M+ users and leading companies

About the Business Model Canvas Template

The Business Model Canvas template, designed by Alexander Osterwalder and Yves Pigneur, provides a strategic and powerful way to understand your business. The Business Model Canvas (BMC)  displays a business model, and it contains nine blocks: fill in each one using stickies, links, sketches, pictures, and videos. Use this business model template collaboratively with your team to clearly explain and visualize your business.

How to use a Business Model Canvas template: 9 key elements

The canvas provides nine key business elements to illustrate, summarize, and track. The nine building blocks of a BMC template are:

1. Key partners

List the key partnerships your business leverages or relies upon for success. Include the resources or value your business gets from these partnerships.

2. Key activities

Summarize the key activities that allow your business to provide services and deliver on your value proposition.

3. Key resources

List the key resources your business relies upon or uses in order to operate and provide services.

4. Key propositions

Summarize the different value propositions that set your business apart from your competition.

5. Customer relationships

Define and describe the primary relationships you have with your customers, including how you interact with them, how these interactions differ among different types of customers, what different customer needs are, and the level of support the different customers receive.

6. Channels

Detail how your customers are reached, how your services are provided, your different distribution channels, and how your value proposition is delivered.

7. Customer segments

Define the ideal customer personas your value proposition is intended to benefit, then describe the key differences between these segments and potential steps in the customer journey.

8. Cost structure

Identify the primary costs associated with operating your business and providing your services, then detail the relationship between these costs and other business functions.

9. Revenue streams

Describe how your business generates revenue through the delivery of your value proposition.

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When do you use the Business Model Canvas template?

Business Model Canvases are not intended to serve in place of a business plan . Instead, the BMC template is used to summarize and visually illustrate the most important information of a business model and to provide centralized ongoing clarity.

This canvas is appropriate for illustrating existing business models, regardless of whether the business is new. The BMC template is also appropriate for visualizing new business models for startups, as it helps organize and consolidate ideas around your key functions. Keep in mind that the Business Model Canvas should be reviewed periodically, as all the factors listed can change over time.

5 Benefits of creating a Business Model Canvas online

Filling in the BMC template makes it easy to visually and collaboratively outline the core aspects of your business's unique value proposition. Here are a few benefits of using the template:

1. Provides a structure for ideation

The Business Model Canvas is extremely useful for structuring your business model visually. This helps at different stages of defining your business canvas and makes it easy to keep up-to-date as strategies shift.

2. Focuses you on your value proposition

It can be easy to get distracted by the varying factors involved in running a business. The value proposition is at the heart of the entire Business Model Canvas template, so you can continually focus on why your business exists. You should use your value proposition as a guiding star to give you direction as you fill out all other parts of the canvas.

3. Fast to complete

Whether or not your business model is clearly defined or you are testing out different business models, the BMC template can be completed quickly and helps you generate new business ideas. This allows for quicker feedback, quicker ideation, and faster iteration.

4. Provides a holistic view of your business

With the Business Model Canvas, you can see how all of the elements of your business are interrelated and inform or affect each other. This provides you with a better understanding of how your business operates as a system or ecosystem.

5. Gives you a central document to share externally

Once you’ve filled out your Business Model Canvas template, you can share it widely, get feedback, and make any needed updates. Because the visual presentation is easy to grasp and understand, teams, stakeholders, advisors, and partners should find the canvas relatively straightforward and easy to understand.

Can I customize the template to suit my business or add more details?

Yes, you can customize the BMC to match your specific business needs and add additional notes or details as necessary.

How often should I update or review the BMC for my business?

The Business Model Canvas (BMC) is a dynamic tool that should be reviewed and updated regularly to reflect changes in your business model or market.

Can I use the BMC template for both startups and established businesses?

Yes, the BMC is suitable for both startups and established companies. It's a versatile tool that can be used for business model development, refinement, and innovation at any stage.

Is there a way to link external resources or documentation directly in the Business Model Canvas template?

Yes, in Miro, you can embed external links directly onto the canvas. This is particularly useful if you want to provide more detailed information or references for specific model sections or business cases.

Can I export my Business Model Canvas to share with stakeholders not using Miro?

Absolutely! Miro provides multiple export options for your canvas. You can save your Business Model Canvas as an image (PNG, JPEG), a PDF, or even a CSV file for the data.

Are there any integrations available to enhance my use of the Business Model Canvas template in Miro?

Yes, Miro offers a suite of integrations with popular tools and platforms to streamline your workflow. For example, you can integrate with tools like Slack for team communication, Google Drive for document storage, or Jira for project management. Using these integrations, you can seamlessly bring in external data, notify team members of updates, or even automate specific tasks directly within your Business Model Canvas board.

Get started with this template right now.

Reverse Brainstorming Thumbnail

Reverse Brainstorming Template

Works best for:.

Ideation, Brainstorming, Team Meetings

Reverse brainstorming is a technique that prompts a group to think of problems, rather than solutions. Because we naturally think of problems, it’s a great way to get a group to anticipate problems that may occur during a project. To engage in reverse brainstorming, start by identifying the problem, and then think of things that might exacerbate it. Ask your team to generate ideas around ways in which the problem could get worse. Reverse the problems into solutions again, and then evaluate your ideas.

Presentation Template

Presentations, Education

At some point during your career, you’ll probably have to give a presentation. Presentations typically involve speaking alongside an accompanying slide deck that contains visuals, texts, and graphics to illustrate your topic. Take the stress out of presentation planning by using this presentation template to easily create effective, visually appealing slides. The presentation template can take the pressure off by helping your audience stay focused and engaged. Using simple tools, customize a slide deck, share slides with your team, get feedback, and collaborate.

Brainwriting Thumbnail

Brainwriting Template

Education, Ideation, Brainstorming

Brainstorming is such a big part of ideation. But not everyone does their best work out loud and on the spot, yelling out thoughts and building on others’ ideas. Brainwriting is a brilliant solution for them—creative thinkers who happen to be more introverted. This approach and template invites participants to reflect quietly and write out their ideas, and then pass them to someone else who will read the idea and add to it. So you’ll get creative ideas from everyone—not just the loudest few.

RAID Log Thumbnail

RAID Log Template

Agile Methodology, Project Management, Agile Workflows

Use the RAID Log template to better understand potential risks, assumptions, issues, and dependencies relating to an upcoming project. With this information, you can make effective contingency plans and prepare your resources accordingly. You’ll know what could go wrong throughout the project and how to fix the problem.

Business Case Canvas by Steve Lydford (1)

Business Case Template

Leadership, Marketing, Market Research

Impress stakeholders and get buy-in with this complete Business Case Template. Cover all key elements of a business case and ensure your pitch is successful.

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Balanced Scorecard Template

Operations, Strategic Planning, Project Planning

Balanced scorecards are useful tools for understanding business performance at a glance with regard to customers, employees, business processes, and financial progress. Learn more about BSCs and create your own using Miro’s Balanced Scorecard template.

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  • Solve User-Reported Issues
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What is a business model canvas? Overview with template

business model canvas for project management

In 2013, I co-founded a startup in the Indian online gifting industry with three friends. It was my first involvement with a startup. Startups are fascinating — they’re small, agile, and quick. However, another key feature of startups is their ability to creatively solve problems.

What Is A Business Model Canvas Overview With Template

At that time, we aimed to target India’s gifting market, which was more than 90 percent offline. We had plans to establish an online shop selling a wide variety of gifts. But before we got started, we decided to document our idea. Amidst many templates, we discovered the business model canvas, a lean tool for outlining business models. It was neat, straightforward, and free. This tool brought remarkable clarity to our idea.

Despite shutting down the startup in 2015, I gained a wealth of knowledge during those two years. One major takeaway was the tools and techniques I learned along the way. The business model canvas was one of them. Even after seven years, I still use the business model canvas in my role as a product manager.

In this blog post, we’ll explore how product managers and entrepreneurs can effectively use a business model canvas.

What is a business model canvas?

The business model canvas is a template introduced by Alexander Osterwalder in 2005 as part of his Ph.D. studies under the supervision of Yves Pigneur. The business model canvas outlines nine crucial elements of a business model in an easy-to-understand visual template: customer segments, value proposition, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.

Various companies, including startups, scale-ups, and large software organizations, have utilized this template since its inception to simplify their business strategy and improve their understanding of the overall business structure. However, before we delve into what a business model canvas entails, it’s important to comprehend why simplifying business strategy and structure is essential.

The last company I was part of employed 10,000 individuals. It ran more than 20 different businesses, each generating millions in revenue. When operating on such a large scale, it’s vital to have a clear strategy that outlines the business models. This strategy should define who the customers are, identify key partners, elaborate on the value proposition, and explain the cost structure, among other things.

The strategic blueprint serves as a go-to source of information whenever confusion arises. While this is true for large corporations, it’s equally applicable to smaller scale-ups and startups. It’s crucial to understand the business strategy and models from the onset. This comprehension aids in crafting a framework that can be applied when tackling complex issues or determining priorities.

This is where the business model canvas proves invaluable. It assists in laying out business models in a straightforward, user-friendly format.

What are the 9 components of the business model canvas?

The business model canvas comprises nine key elements:

Customer segments

Value proposition, customer relationships, revenue streams, key activities, key resources, key partnerships, cost structure.

9 Components Of A Business Model Canvas

These components cover the three main areas of a business: desirability, viability, and feasibility. The nine components also aim to bring transparency and understanding to a broad audience, which can include upper management and internal teams such as engineering, design, product management, marketing, sales, legal, and customer service.

Collectively, these elements capture the essence of a business model. They help map the relationship between these elements and how they intertwine with one another. Let’s take a more in-depth look at each element.

Everything starts with the customers, which is why this is the first element of the business model canvas. This component identifies the different customer segments a company targets. These can vary across business models.

business model canvas for project management

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business model canvas for project management

For example, while working at Zalando (one of Europe’s largest fashion eCommerce companies), there were multiple business models. One focused on end customers, while another focused on partners selling products on Zalando. The business model canvas helps outline these customer segments in a single snapshot.

Try to avoid being too detailed. Mention who the partners are, but there’s no need to note the demographics, age, gender, etc., of the customer segment unless required.

This term refers to the unique advantage or value a business provides. It’s what sets the business apart from competitors. This could be a product or a service that the business uses to solve a customer’s problem.

For instance, Uber’s value proposition is its ability to help customers travel from point A to point B on demand.

Channels are the various ways through which a business intends to interact with customers and/or partners. For Airbnb, their website and apps are the primary channels. But they also leverage social media, offline hoardings, email marketing, and community forums to reach their audience.

This element addresses the various ways a business interacts with customers to improve satisfaction and the overall experience. Monitoring customer feedback and how they interact with a company’s product is critical in a competitive landscape.

Amazon, a company that prioritizes customer focus, includes 24/7 customer support, personalized recommendations, regular newsletters, ratings and reviews, Amazon Prime membership, and community engagement as part of its customer relationships.

This component lists the different ways a company plans to generate revenue. For Google, revenue streams include advertising, the Google Play Store, Google Cloud, and hardware sales.

This section includes all necessary activities needed to keep the business functioning smoothly and to deliver value to all users. Microsoft’s key activities, for example, include software development, hardware development, cloud computing, gaming, research and development, and VR.

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As the name implies, key resources are the essential tangible and intangible resources needed to keep the business operational. These resources incur costs, making their documentation vital. An online gift-selling company would require a website/app, collaborations with manufacturers, and marketing capabilities.

This element focuses on the partnerships or collaborations a business might have with other companies to better serve customers, reduce risks, and increase profits. For Facebook, key partners include regular users who generate content, advertisers, and influencers who create content at scale.

This element outlines the costs and expenses associated with a business. For companies like Google and Facebook, costs can be substantial given their value propositions. While it may be difficult to capture the cost structure of these giants in a small space, it becomes easier and beneficial for smaller companies.

For example, McDonald’s cost structure would include manufacturing costs, service-based costs (such as employee costs), franchise costs, and infrastructure costs.

What are the benefits of using a business model canvas?

Indeed, using a business model canvas offers many advantages for businesses of all sizes. To summarize, some of the key benefits include:

Benefits Of Using A Business Model Canvas

Visual representation

A business model canvas provides a visual overview of all the critical elements of a business. This allows stakeholders to see how these elements relate to each other, facilitating understanding and decision-making.

The visual nature of the canvas makes it accessible to various stakeholders, including top management, engineers, designers, customer service, and operations teams.

Clear collaboration, communication, and alignment

Developing and managing products often require the input and collaboration of multiple stakeholders . A business model canvas provides a clear, concise tool for aligning all these parties, promoting better communication and collaboration. It also helps product managers secure buy-in from stakeholders at an early stage, reducing risks and fostering better alignment, especially in a cross-functional environment.

Strategic long-term thinking and analysis

By design, a business model canvas encourages long-term strategic thinking. It helps identify business strengths and weaknesses, facilitates brainstorming new ideas and improvements, and shapes long-term strategies to better serve customers.

Flexibility

Businesses and ideas evolve, and a business model canvas accommodates these changes. It offers a flexible template that can be easily modified, often featuring version numbers to track document evolution. This flexibility supports an iterative approach, ensuring the canvas captures all necessary information as the business evolves.

Business model canvas template

The internet is replete with various business model templates. A quick Google search will return 34,200,000 results. Here’s a quick template that I created on Google Sheets:

Business Model Canvas Template

Click here to access the business model canvas template. You can click File > Make a copy to download the canvas and customize it for your business.

Example of successful use of the business model canvas in product management

Here’s an example of a business model canvas for Facebook:

Business Model Canvas Facebook

How do I create a business model canvas for my business?

After you fill out the nine components we went over earlier, there are some other key points to keep in mind to successfully create a business canvas model.

Involve all the stakeholders early on

Since a business model canvas has elements ranging from tech to marketing, sales, and customer service, it’s important to involve these stakeholders right at the start. This reduces the risk and helps to bring everyone on the same page.

Keep it simple

Don’t use complex sentences while explaining the pointers under every element. Use simple and short words. Simplicity will make it easier for the audience to consume the information effectively.

Be data-driven

Let every pointer included in the business model canvas be data-driven. This will help lay down a strong foundation for long-term decision-making.

Focus on an iterative approach

It’s difficult to come up with a business model canvas right at the first go. Hence, it’s important to keep an iterative approach and let the document evolve depending on the feedback from the contributors. You can use versioning to keep track of all the changes.

Consider external factors

Currently, the growth of many businesses is slow and it’s projected to be the same for the entire year. It’s important to consider these external factors while coming up with a business model canvas since it helps to consider factors that might not be in control of a business.

Conclusion and key takeaways

A business model canvas can be a very effective tool if used right away. Product managers can use this tool before starting a product or a feature. It can help them have clarity on the idea before the actual development work starts.

Also, since it involves all the major stakeholders right at the start, a business model canvas can help mitigate risks early on. It’s a great tool for validating business ideas, products, or a feature.

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business model canvas for project management

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Business Model Canvas

Business Model Canvas example

What is the Business Model Canvas?

The Business Model Canvas provides a structured and visual “one-pager” approach to understanding how a company, project, or product can create, deliver, and capture value. It’s essentially a snapshot that helps describe and assess new or existing business models.

Developed in 2010 by Yves Pigneur and Alexandre Osterwalder, authors of “Business Model Generation,” the Business Model Canvas was initially intended to be a tool for entrepreneurs and small business owners. Since then, it has been widely adopted by companies of all shapes and sizes around the world. There are many reasons for this:

  • It has many use cases. At the start of a project or product development cycle, for example, it can help teams identify a clear path towards success. On the other hand, once a project or product has launched, it can be used to assess and refine the current business model based on evolving market trends or other constraints.
  • It is highly visual. Unlike a traditional and detailed business plan, the Business Model Canvas provides a snapshot of a business’s or product’s economic model that can be understood easily at a quick glance.
  • It connects the dots. Once completed, the Business Model Canvas helps teams both see the links between different aspects of a business or product and also highlight potential or problematic gaps. This is essential for being able to prioritize key areas of improvement to help a new or existing business model over time.
  • It is fun to create. The Business Model Canvas workshop is all about identifying a path toward innovation. It’s an exercise in creativity—without a definitive start and finish—and a great tool for constantly challenging yourself and finding new ideas.

How to complete the Business Model Canvas

Sometimes called a "business matrix," the Business Model Canvas is made up of nine key sections built around three key themes:

  • Desirability (Sections 1 to 4): How does the business create value?
  • Feasibility (Sections 5-7): How does the business deliver value?
  • Sustainability (Sections 8 and 9): How does the business capture value?

The business model canvas

As you work through the nine different sections, you should ask the following questions:

Section 1: Customer Segments

Who are your customers? What target demographics are you hoping to serve? Are they consumers (B2C) or other companies (B2B)?

Section 2: Value Proposition

How are you addressing customer problems? How can your business or product offer to address those problems? Why should your customers prefer your business or product over a competitor’s? What makes your business or product unique?

Section 3: Customer Relationships

What kind of relationship will you have with your customers? Are your customers autonomous? Do they require support? Are they a community? How will you communicate with your customers? What tone will you use? How do you plan to retain customers?

Section 4: Distribution Channels

What owned and operated channels will you use to reach your customers? What third-party channels will you use to promote your business or product? How will your customers find your business or product?

Section 5: Key Activities

What activities must be done in-house to create and deliver value? Which activities can be outsourced?

Section 6: Key Resources

What resources (human, financial, or material) are needed to deliver value? What resources are needed to manage the customer relationship? What resources are you currently lacking?

Section 7: Key Partners

Who are the partners you can not do business without? Who are your suppliers? Who are your advocates? Who are your other strategic partners?

Section 8: Revenue Streams

How does your business make money? Do you sell individual (one-off) products or services? Do you sell subscriptions? How much are customers willing to pay for your product or service?

Section 9: Cost Structure

A few things to keep in mind:.

  • The sections of the Business Model Canvas should be completed in sequential order. There’s a logic to it, as each section builds upon the next.
  • Don’t feel the need to start from scratch as you work through the Business Model Canvas. For example, if you’ve already established Personas in another exercise, use those to fill out Section 1. The idea here is to bring all of the pieces together on a single page, not to reinvent the wheel entirely.
  • If you haven’t yet established a clear value proposition for your business or product, use the Value Proposition Canvas—another tool created by Alexandre Osterwalder.
  • Each of the sections should not be “easy” to complete. Take the time to cover all of your bases and ask all necessary questions. And don’t be surprised if, in the beginning, you’ve identified multiple value propositions or too many customer segments. This is part of the process. The goal is to get all ideas on paper, discuss, refine, and then revisit over time as your business or product evolves.
  • As you fill out each of the sections, be sure to keep the content as short, sweet, and concise as possible. Remember, this doesn’t need to be as detailed as a traditional business plan; this is simply a snapshot of your business model. It should be easy to understand at a quick glance.
  • Keep in mind that all of the sections of the Business Model Canvas are linked to one another. If you modify the information in one section, you’ll likely need to modify details in other sections. Consistency here is the key to driving long-term profitability.

Suggested resources to learn more about the Business Model Canvas

  • An overview video of the Business Model Canvas by Strategyzer: Business Model Canvas Explained .
  • An article by business consultant Isaac Jeffries explaining how to fill in the sections of the Business Model Canvas: How to fill a Business Model Canvas .

The Strategic Project Manager

Business Model Canvas Explanation for Strategic PM’s

A Business Model is an important input to organizational success.  So how can you easily develop a good Business Model?

This post examines the Business Model Canvas, a simple tool that provides a template for building an effective Business Model.

What Is a Business Model Canvas?

business model canvas explanation

The canvas can provide a high level Business Model view of any organization. It requires thinking through nine key items – using the 80:20 rule – for the subject organization.

Note the dashed line through the center of the canvas, separating the items that are oriented to Value Creation, and those for Execution.

Rather than explaining the canvas, I will ‘take a wag’ at filling it – for the Project Management Institute (PMI) – noting that this is my perspective only for the example. Here goes:

  • Customer Segment(s) – Project managers in any industry, any type of company, nonprofits, and government organizations; organizations who can gain value by better project management
  • Value Proposition – Provide PM standards, certifications, and integrated community around them to enhance project performance and PM careers everywhere
  • Channel(s) – Website; local chapters; network of training providers; testing channel; conferences
  • Customer Relationships – Project Managers
  • Revenue Stream(s) – Membership fees; books and related resources; training; conference fees
  • Resources – The PM membership; staff; key organizations
  • Activities – Conferences; publication; creating/vetting/updating standards; approving training; publishing
  • Partners – Network of training providers; content creators and publishers
  • Costs – Staff salaries; website(s); HQ facility; conferences

Note that having a big board and brainstorming in a group would be the best way to do this. The team could post sticky notes with these ideas right onto the canvas.

The Business Model Canvas is like using a template to construct a Business Model. It gets you into action on the basics of strategic business models . Getting good at Business Model generation can become a core organizational capability through the process of Business Model Innovation .

—————————————-

I recommend these strategy resources on FlevyPro (paid links):

Now let’s go a bit deeper look with each of the items on the canvas.

1. Customer Segment(s)

Customer Segment of Business Model Canvas

Here is how you might go about capturing the target customer segments:

  • What is the customer avatar?
  • How big a segment can the business handle?
  • What are the demographics of the target customers?
  • What are their geographic and social characteristics?
  • Would it be better to scope the target customer population differently?
  • Is there a priority or timing aspect?

Note that Customer Segment is listed first because it drives virtually all other considerations on the canvas.

2. Value Proposition

Value Proposition on Business Model Canvas

  • What is the customer’s job to be done ?
  • Is there a unique product or service for the customer?
  • Is there a unique way of delivering the solution?
  • Is there a need for a consistent solution, but perhaps with some degree of customization needed at some point?
  • Are the drivers problems or needs?

The Value Proposition is at the core of the Business Model – hence its position prominently at the center of the Business Model Canvas. It is also evenly split between Value Creation and Execution.

3. Channels

Channels in Business Model Canvas

Here are some ideas to consider:

  • Download, email, or app for digital products
  • Storefront, either owned or through franchisee
  • Retail sellers
  • Distribution network, for both retail and business to business
  • Network of partners who offer value-added services

Here are a few examples:

  • Panera has a network of franchised restaurants.
  • Starbucks has a network of company owned stores.
  • UPS has a network of franchised storefronts, major distribution centers, online tracking, and doorstep delivery.

There are likely to be more than one of these choices, and often synergistically in alignment with each other – as with UPS. Channel consideration will be embedded in the value chain .

4. Customer Relationships

Customer Relationships on Business Model Canvas

Here are some questions to ask:

  • How will we obtain new customers?
  • How will we keep existing customers?
  • How can we grow our base of customers?

You can only answer these questions by getting out and talking with customers and related stakeholders.

5. Revenue Stream(s)

Revenue Stream of Business Model Canvas

Here are some key considerations:

  • How will we make money from each segment?
  • What is the value we provide to the customer, and what can and should they pay for that value?
  • What are some different techniques we can use generate revenue, such as product pricing, graduated levels, subscription, advertising, and membership?
  • Do we need to provide some value for free, or at low price, as a loss leader?

There are many strategic considerations around the revenue question. Initially, just use some common sense and your experience to get started.

6. Resources

Resources on Business Model Canvas

  • Financial assets
  • Physical assets, such as facilities
  • Intellectual property that provides and protects the foundation for products and services
  • Customer lists
  • Skilled people

You will need to determine the best combination of these resources that you need. You will need to determine which are most important and emphasize them accordingly.

7. Key Activities

Key Activities on Business Model Canvas

Any organization has a set of key, or core, activities that it undertakes to add value.

Here are some common types of core activities:

  • Production – How will we produce the products and services?
  • Project management – Is this a project-centric business? Do we get paid for delivering projects?
  • Supply chain management – Is the supply chain a key capability, and therefore a core activity?
  • Problem solving – Do we solve unique problems that are posed, such as in a consulting setting?

Identifying the key activities is important in beginning to understand and shape the culture of the organization.

8. Partners and Suppliers

Partners on Business Model Canvas

Here are some questions to consider:

  • Who is already serving our target segment(s)?
  • What networks do we need to participate in?
  • Should we build a network , or join an existing one?
  • What strategic alliances, joint ventures, and related strategic relationships might help us to build a stronger position?
  • What suppliers do we need in order to build and provide the products or services?

Answering these and related questions gets to the heart of the operation side of the venture. It forces digging into how the Five Forces exist in the industry.

Costs on Business Model Canvas

  • What major costs/investments do we need in order to get started?
  • What fixed costs will we have on an ongoing basis?
  • What will be our variable costs?
  • Are there potential economies of scale?

At the earlier stages, the focus is on developing a Business Model that is viable. Estimates may not be precise, but they need to capture the Rough Order of Magnitude (ROM) in order to be able to assess the viability of the Business Model.

The Business Model Canvas and Project Management

The Business Model Canvas is in essence a template – for building, understanding, and enhancing Business Models. It really works the same way as project management templates. It provides a proven framework, which enables you and your team to spend most of your time thinking.

I recommend these PM templates (paid link):

Here are six ways the Business Model Canvas can help you as a project manager:

  • It helps you and the team to better understand the context for a project.
  • It provides a proven framework to think through key aspects of Business Models that might be effected by a change being implemented by a project.
  • It better enables and prepares you to speak the language of upper management.
  • It can make you more valuable as a manager and contributor.
  • It can help you to advance your career.

You can quickly and conveniently work through the components of the Business Model Canvas with the Lucidchart Business Model Canvas template (Try for free)  – recommended!

Conclusion and Further Resources

How have you applied business models in your experience? Where can the Business Model Canvas help you?

Please share!

To supercharge your understanding of business models, I recommend “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” by Alexander Osterwalder.

I recommend this video for a short overview: The Business Model Canvas – 9 Steps to Creating a Successful Business Model”

For some direct learning from Alexander Osterwalder, who is credited with developing the Business Model Canvas, I recommend this video: “ Tools for Business Model Generation ”

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How to Build a Product Roadmap Based on a Business Model Canvas

Could you list all of the key building blocks you need to develop, manage, maintain, market, and sell a product on a single sheet of paper? With the business model canvas, you can! Using the business model canvas approach is a great way to force yourself to focus on the most strategically important elements of your product. As the name suggests, the typical use case for this tool is to outline the fundamental building blocks of a business, but it also can work really well for a product.

Today we’ll show you how the business model canvas works and how you can use it to come up with a high-level product strategy.

What is a Business Model Canvas?

As you can see from the sample example below (thanks, Strategyzer.com), a business model canvas is a one-page summary describing the high-level strategic details needed to get a business (or product) successfully to market.

The categories or buckets contained in a canvas can be customized. But most will look similar to the one here—covering such key areas as:

  • The product’s value propositions (what it does and promises)
  • Customer segments (who it’s for)
  • Key activities (the steps the team must complete to make it successful)
  • Key resources (what personnel, tools, and budget the team will have access to)
  • Channels (how the organization will market and sell it)
  • Customer relationships (how the team will support and work with its customer base)
  • Key partners (how third parties will fit into the plan)
  • Cost structure (what it costs to build the product as well as how to sell and support it)
  • Revenue streams (how the product will make money)

Business Model Canvas by Strategyzer

If you think about it, that’s a fairly comprehensive set of building blocks you’ll need to think through for your product before you begin developing it. There will certainly be additional factors that’ll affect your strategy, but if you can fill in these high-level details—which, as you can see, should fit comfortably on a single page—you’ll have a useful strategic guide for developing your product roadmap.

Why Should I Use a Business Model Canvas to Develop a Product Roadmap?

Okay, but why? What’s the benefit of building a business model canvas (or the, even more, stripped-down variation, the lean canvas) to guide my product roadmap ?

There are plenty of reasons. But simply put, you can think of a business model canvas as a mission statement for your product roadmap. It’s a handy reference you can refer to, to make sure your roadmap always reflects all the strategic elements needed for your product’s success.

Tweet This: “Think of a business model canvas as a mission statement for your product roadmap.”

Our co-founder Jim Semick has a couple of great short videos explaining the business model canvas concept, which you can check out in the player below.

As Jim explains, here are a few of the benefits of using a business model canvas to think through product strategies:

1. You can use a business model canvas to roadmap quickly.

You can use this canvas approach in just a few hours (and as Jim says, you can even do it with sticky-notes).

This way, rather than trying to write out every detail about your product plan beforehand, you can just document the highlights—and then you can get rolling translating the canvas into your product roadmap.

Read the Product Roadmaps Guide ➜

2. A business model canvas will be more agile.

One problem with the old structure of documenting a business model—the traditional business plan—was that it was almost always inaccurate as soon as the author finished drafting it.

These meaty plans included detailed cost estimates, revenue projections going years into the future, and long-term plans for growing the staff. How could any of that remain accurate for long?

In product terms, you can think of the business plan as resembling an MRD (Market Requirements Document). It’s long, detailed, and probably mostly untrue by the time it’s done.

But because you can put a canvas together so quickly, it will much more accurately reflect your strategic thinking and your company’s current reality. And if things change, it’ll be easier than a long and detailed plan to adjust. This brings us to Jim’s third benefit…

3. Business model canvas roadmaps allow you to pivot as needed.

If you build a business model canvas to guide your business roadmap , and something happens that forces you to re-prioritize or pivot your product , it will be a lot easier to update this short, high-level document than it would be if you had some monster MRD or business plan to tear apart and edit.

With a one-page business model canvas acting as the strategic undergirding for your roadmap, you’ll always be able to quickly spot any items or plans that need updating whenever priorities change or new realities demand that you adjust your approach.

How Can I Use A Business Model Canvas to Guide My Product Roadmap?

The alexa example.

Let’s talk through a hypothetical example, using Amazon’s Echo device (“Alexa”) as our guide.

Imagine that as they were talking through what belonged in the “Revenue Streams” bucket of the business model canvas, Amazon’s Echo team came up with three sources of revenue to start with:

1) Selling Echo devices.

2) Using the device to sell other stuff as customers ask it to connect to the Amazon marketplace. (“Alexa, please add laundry detergent pods to my shopping cart.”)

3) Licensing Echo’s proprietary speech-recognition technology to other businesses.

Now, if the Echo product team put these on their business model canvas, they’d know that they need to make room for budget, time, and resources on their product roadmap for all of these revenue streams.

Another Hypothetical Example of the Business Model Canvas: Channels

Or think about the Channels bucket in the business model canvas. If your team was building out a canvas, maybe you’d have several ideas for reaching customers:

1) The in-house sales team. 2) Affiliate partners. 3) Word-of-mouth advertising from users.

It’s easy to write. But how are you going to translate that “word-of-mouth” strategy into an actual plan?

Maybe you’ll need to budget time and resources for developing things right into your product that make it easier for users to share their experiences with friends, such as a handy tool to help them tweet about it. Maybe you’ll even want to include an “Invite a friend” feature that lets users easier send a trial license to friends, or a couponing feature that offers some reward to a user who brings in two more users.

The point is, your business model canvas can serve as a great strategic reminder of the things you’ve determined are important enough to make it onto your product roadmap .

So you can always look back and see immediately—it’s just one page, after all—if you’re still working on all of the essential elements of your product, or if you’ve inadvertently strayed from them and gotten lost in the wrong details.

That’s why we’re big proponents of the business model canvas approach to guiding your product roadmap .

Do you have an opinion about using the business model canvas approach for developing and documenting your product’s strategy? Feel free to share them in the comments section.

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business model canvas for project management

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Using the Business Canvas Model for Project Management

Using the Business Canvas Model for Project Management

Managing projects can be challenging, with many different factors to consider such as timelines, budgets, resources, and stakeholder expectations. To effectively manage a project, it is important to have a clear plan and framework in place to guide decision-making and ensure that all aspects of the project are aligned. One such framework is the business model canvas, which is typically used for developing and refining business models but can also be adapted for project management. In this blog, we will explore how the business model canvas can be used for project management and the benefits it can provide. A free trial template from Digital Leadership for your Project management needs!

What is the business model canvas?

The business model canvas is a strategic management tool that provides a visual representation of a business model. It consists of nine key elements that are used to describe and analyze how a company creates, delivers, and captures value. The nine elements include customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.

Adapting the business model canvas for Project Management

While the business model canvas was originally developed for business modeling, it can also be adapted for project management. By using the canvas to develop a project plan, project managers can ensure that all key aspects of the project are considered, and that the project is aligned with the overall strategic goals of the organization.

Key Elements of the business model canvas for Project Management

The key elements of the business model canvas can be adapted for project management in the following ways:

Customer segments

In project management, customer segments refer to the stakeholders who will be impacted by the project. This includes internal stakeholders such as team members and external stakeholders such as clients, vendors, and customers.

Value propositions

In project management, value propositions refer to the benefits and value that the project will deliver to the stakeholders. This includes both tangible and intangible benefits such as increased efficiency, improved customer satisfaction, and increased revenue.

This section of the business model canvas is about identifying channels, which involves defining how the project team will communicate with stakeholders. This may include using project management software, email, or regular status updates.

Identifying the channels helps to ensure that the project team can communicate effectively with stakeholders and provide them with the information they need to make informed decisions. It also helps to manage stakeholders’ expectations, ensuring that they are informed about the project’s progress and status.

Customer relationships

In project management, customer relationships refer to the interactions and relationships that the project team will have with stakeholders. This includes establishing clear communication channels, managing stakeholder expectations, and providing regular project updates.

Revenue streams

In project management, revenue streams refer to the financial resources required to complete the project. This includes the project budget, funding sources, and cost projections.

Key activities

These activities may include identifying project scope, creating a project plan, defining project objectives, establishing timelines, managing resources, monitoring progress, and delivering project outcomes.

Key activities are crucial to project success, and it is essential to identify and prioritize them accordingly. Prioritizing these activities helps to ensure that the project stays on track and is completed within the defined timeline and budget. It also helps to keep the team focused on critical tasks, minimizing the risk of distractions that can derail the project.

Key resources

This section of the business model canvas is about identifying key resources. For project management, key resources may include people, technology, facilities, and funding.

Identifying key resources is essential for successful project management. The project manager must ensure that the necessary resources are available to support the project’s key activities. For example, they may need to identify and allocate resources for project management software, personnel, or physical resources such as office space or equipment.

Key partnerships

In project management, key partnerships refer to the external partners and vendors who may be required to complete the project. This includes outsourcing firms, consultants, and vendors who provide specialized expertise.

Cost structure

In project management, cost structure refers to the costs associated with completing the project. This includes the cost of resources, equipment, and external vendors.

Using the business model canvas for project management helps to ensure that the project team is aligned with the project’s objectives and that all activities are focused on achieving the project’s goals. By breaking down the project into key components and identifying the resources needed to complete them, project managers can ensure that the project stays on track and is completed within the defined timeline and budget.

Project managers should continuously revisit the business model canvas throughout the project lifecycle to ensure that the project stays aligned with the project’s objectives and that the necessary resources are available to support key activities. By doing so, project managers can help to ensure project success and deliver valuable outcomes to stakeholders.

Use of Business Model Canvas to Kickstart the project management

To start a project, it is important to have a clear scope. A tool that is often used is the Business model canvas, both to start up a project within an existing company or to start up a new company. The business plan can be more or less comprehensive, but the more it is well thought out the higher is the chance of success. A typical method to create a business plan is to use the Business model canvas and therefore this article examine the incooperation of the business model canvas to project managing. The execution of information transfer from the Business Model Canvas to start of project management will be described in detail.

The two main project developement methodologies considered in this paper are waterfall and agile. Waterfall is a sequential based method whereas agile is based on iterations. Choosing between these two methods will affect the use of the business model canvas. For detailed explanation read Waterfall vs. Agile Methodology . The affect of working by the agile or waterfall method is described and then all similar methods for both agile and waterfall is explained.

The similar methods are some generel management tools typical to start the process of managaging and the main focus from the Business Model Canvas is in key activities, key ressources, value proposition and customer segment.

First you will find a very brief description of the Business Model Canvas.

Business Model Canvas

The business model canvas is a tool to scope the changes in a company or the startup of a company. This will result in either adding information to an empty canvas or to outline changes from an old business plan to a new one. The Business Model Canvas describes 9 blocks of valuable knowledge to investigate before starting a business. Those 9 blocks and their relation can be seen from figure XX and describe following:

business model canvas for project management

Key partners The network of suppliers and partners of the project or company and a description of resources and activities connected to each of them. [2]

Compared to project management - Key partners are much more focused for business model and for project management and would be compared to stakeholder management. For business model canvas the focus is to identify and for project management to understand. Key partners are similar for agile and waterfall. [2]

Key activites A description of what jobs will make the business work according to the other blocks. This can be production, problem solving and platforms. [2]

Compared to project management - Key activities in business model is the are the necessary activities to produce a product and for project management key activities are more detailed and describes all activities to get to produce the product. [2]

Key resources Key resources describes what resources are most important to get the business to perform well. These can be financial, human, physical and/or intellectual. [2]

Cost strudtures A description of all costs for operation of the project, including cost for activities and resources. [2]

Value propostions Description of products and services that can create value for a customer segment. The value proposition has a high variation of possible value types, as example it can be in form of performance, customization, design and/or cost reduction. The value can also be a mix of several types of values. [2]

Customer relationship Describes the relationship the company has to the costumer segment. As examples it can be a very close dedicated personal assistance, or it can be self-service which require no direct communication between company and costumer segment. [2]

Channels The channels describe how a company, or the project reaches the customer segment. [2]

Customer segment The groups of people the project or company aims to reach and serve. Two examples of costumer segments are mass market and niche market. [2]

Revenue streams The block describes how cash is generated in the project or company. The description includes an analysis of what costumers are willing to pay for the value that is offered. [2]

Affect of Business Model Canvas for waterfall method compared to agile method

Working by the method of the waterfall model, increase the need of information right from the beginning of managing as it does not have a feedback structure. To be able to perform as good as possible a coherent analysis of a given project will be necessary in the start of managing a project to avoid any mistakes made from the start. Any mistakes in the analysis will just follow along in the waterfall method. Typical the waterfall method works well if the business plan is all done and is not to be changed again. Changing the business plan will mst likeliy cause the project managing to start over. So the business model can support the managing of a project working by the waterfall method, but the project managing work will not support the business model. The agile method consists of iterations and will be able to correct any mistakes, so a thorough investigation is not as crucial as for the waterfall method, though it will still be a huge help and save both time and money. The agile method does make it possible to correct in the Business Model Canvas, so the project managing will also support the business model as well as the business model support the project managing.

Kickstarting the project managing

Project management starts by a comprehensive analysis of several aspects of a project. This analysis can be strongly supported by the Business Model Canvas for the use of many typical models used for managing, as the key stakeholders are outlined, the key resources, cost plan, goals and costumer segment are already defined. Some of the typical models used during the analysis phase is as follows and will be the same for starting managing whether the waterfall or agile method is used.

Efficiency/effectiveness

This can be used to clarify whether the project is efficient and effective. To be able to succeed the project work must be effective, in ineffective work will cause the death of the project fast or slow depending on how efficient the work is. Being effective means pursuing the right goals, so it is crucial to clarify the goals of a project. The overall business plan helps to set the goal and the value proposition canvas is quite specific of the goal, though the goal will be phrased differently.

Example 1 - The value proposition could be to deliver high quality designer clothes to a niche market, then the goal is to design high quality designer clothes.

Example 2 – The value proposition is to deliver cheap fast food bought in supermarket and ready to eat and to reach a wide costumer segment. The goal for this example is to create a cheap production of food that apply to a wide range of customers and with a high production rate.

If the project pursues the right goals it will be effective and it will have a high chance of succeed, though if it is inefficient it will be at a high cost. Being efficient is utilizing one’s resources wisely. All key resources are defined from the business model canvas and makes it possible for the manager to prioritize resources and therefore efficiently take use of them, and they can be attached to the activities described in key activities. Though further activities will be relevant for project management as described for key activities.

Example 1 – If the key resources are humans their activities and procedure must be optimized.

business model canvas for project management

Building competitive advantage

Competitive advantage are succeeded when the four elements quality, efficiency, costumer responsiveness and innovation are reached and will result in low cost and/or differentiation.

Quality The quality of the project can be discussed and decided based on the value proposition. Example 1 – If the value proposition is to deliver designer clothes to a niche market, the quality needs to be of high standards as well as the price will be higher. Example 2 - If the value propositions is to deliver cheap fast food in supermarkets, then the quality not necessarily needs to be of high standards if the cost is low.

Efficiency Efficiency is as described for efficiency and effectiveness. Organizations compete in new ways to improve the use of recourses and reduce the quantity of them, therefore it is important for a company to achieve competitive advantages [4] .

Customer responsiveness To be able to attract customers it is important to know their needs and respond to that. This information input can be found in the customer segment and the value proposition and it must be analyzed whether the value proposition does respond to the customer segment for the organization. Example 1 – If the value proposition are designer clothes and the customer segment are a niche market, it must be investigated what kind of designer clothes is already offered, what this specific niche market desire in clothes and what is not offered yet.

Innovation Innovation is to create new or improved products or to develop new ways to produce or provide them [4] . Innovation will create value for a business, but the resources used to come up with innovation ideas must be minimized relatively to the business plan in order for it to pay off. Therefore, the key partners, key resources, key activities, value proposition, channels, customer relationship, the customer segment and cost revenues all influence how to focus on innovation. Depending on who the key partners are, they might bring input and resources to innovation ideas, all other blocks can be optimized, and the business plan can be innovated and a wide range of possibilities. So when investigating innovative methods and possibilities, the business model is a great starting point and will kickstart the brainstorm of options. Example 1 – Designing high quality clothes for a niche market. To bring innovation to such kind of a business, can be done in multiple ways. First, key partners must be taken in to considerations. Does the business have any key partners that support innovative ideas, and do they already provide innovative ideas in other business which can support business of designer clothes? Then the innovative idea can be by improvement of activities and resources. It can also be by improving the value proposition, channels, customer relationship and customer segment. So instead of just designing clothes, the clothes can be designed with inputs from the niche market, which will affect the value proposition, the customer relationship and maybe also the channels. The cost revenues can also be improved and innovative ways can be invented. Innovation will often be a rethinking of several aspects of the business model. As described in example 1, developing new ways to produce products will include both resources and activities.

business model canvas for project management

Barriers to entry

Barriers to entry are the description of how difficult it is to enter a market, and by that it also defines how many competitors there will be [4] . To define the barriers to entry a market three inputs must be considered, Economics of scale, Brand loyalty and government regulations.

Economomics of scale Economics of scale is the cost advantages based on a large production of goods or services. [4] This is related to the customer segment that can aim for anything in between the mass market and niche market. If the organization aim for the mass market it must be observant for any competitors, because leading companies in mass market productions create high barriers for that specific market.

Brand loyalty If there are already companies in a market with high brand loyalty it will take a lot of effort to convince customers to go for a new product or service. At the same time if the market is already entered then creating a high brand loyalty will increase the change for the organization to survive. For both cases the customer relationship and the channels of the product influence the brand loyalty.

Government regulations Does not have any real inputs from the business model. So to define the barriers there is to enter a market, the customer segment, the customer relationship and the channels described by the business model will contain supporting material.

business model canvas for project management

Limitations to be aware of when including the BCM in project managing

It is important to be aware that even with all the similarities in the business models canvas and the analyzing phase of project management it is not the same inputs for several of the business model canvas as it is for project management. The business model must only be considered support for the beginning phase of project management and not considered to contain any final results for managing. Key partners are not the same as stakeholders and the stakeholder analysis is much more comprehensive. Key partners are those who is part of the project by bringing ressources, whereas stakeholders are anyone that can influence of be influenced by the project. The key activities differs between the business model and project management, again because the project management needs a much more comprehensive analysis of activities and include all activities that takes part of getting the project started and in the business model it only contain activities necessary to keep the project going. The business model canvas outlines what is the desire for the business, and it brings in an overview of whether all aspects relates to eachother in a reasonable way. For example if the value proposition is to produce cheap fast food and the customer segment is a niche marketm, then there is a misalignment due to the fact that producing it to be cheap require the amount of sold products to be high. So, when creating a business model, it does some of the job for the project manager and will give less work to get the business started. Project managing will then use the information but make a more thorough analysis of the organization.

Annotated bibliography

Jones, G. R., & George, J. M. (2015). Essentials of contemporary management (4th ed.) New York, NY: McGraw-Hill Education. - The book presents the business model canvas and a description of how to use it. The book is created as a handbook for whom I concern, with several examples and explanations presented with few words and lots of illustrations. A lot of visual communication is used to present the content.

Osterwalder, A., Pigneur, Y., Clark, T., & Smith, A. (2010). Business model generation: A handbook for visionairies, game changers, and challengers. Hoboken, NJ: Wiley. - A rather comprehensive examination of contemporary management is to by find in this book. It describes several aspects of management and what the role of being a manager contains. It introduces a lot of typical management tools and explain the use of them in management. In each chapter an example of management is given corresponding to the topic of the chapter. A thorough description of the tasks, responsibilities and tools necessary to know when being a manager.

  • ↑ https://www.strategyzer.com/
  • ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 Jones, G. R., & George, J. M. (2015). Essentials of contemporary management (4th ed.) New York, NY: McGraw-Hill Education.
  • ↑ https://agilebacon.com/words-mean-things-efficient-and-effective/
  • ↑ 4.0 4.1 4.2 4.3 4.4 4.5 "Jones, G. R., & George, J. M. (2015). Essentials of contemporary management (4th ed.) New York, NY: McGraw-Hill Education."

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  1. Business Model Canvas: Definition, Benefits, and Examples

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  2. Business Model Canvas Explained: Examples And Structure

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  3. Business Model Canvas: A 9-Step Guide to Analzye Any Business

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  4. Business Model Canvas: The Definitive Guide and Examples

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  5. Project Canvas: The Ultimate Project Management Template

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COMMENTS

  1. Business Model Canvas: Explained with Examples

    The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It's a one-page document containing nine boxes that represent different fundamental elements of a business.

  2. Project Canvas: The Ultimate Project Management Template

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  3. Business Model Canvas: A 9-Step Guide to Analzye Any Business

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  4. Business Model Canvas Template

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  5. Business Model Canvas in Project Management

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  6. Business Model Canvas: A Tool for Entrepreneurs and Innovators (Project

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  10. Business Model Canvas Template

    The Business Model Canvas template, designed by Alexander Osterwalder and Yves Pigneur, provides a strategic and powerful way to understand your business. The Business Model Canvas (BMC) displays a business model, and it contains nine blocks: fill in each one using stickies, links, sketches, pictures, and videos.

  11. How to Use the Business Model Canvas for Strategic Analysis

    In a video that plays in a split-screen with your work area, your instructor will walk you through these steps: •. Explain the relationship between Business Model Canvas and strategy. •. Determine your customer segment. •. Create value proposition for your customers. •. Create channels to reach your customers.

  12. What is a business model canvas? Overview with template

    The business model canvas is a template introduced by Alexander Osterwalder in 2005 as part of his Ph.D. studies under the supervision of Yves Pigneur. The business model canvas outlines nine crucial elements of a business model in an easy-to-understand visual template: customer segments, value proposition, channels, customer relationships ...

  13. Business Model Canvas: The Definitive Guide and Examples

    Download a PDF Business Model Canvas template, and take several colored markers, sticky notes, and anything else you may need. For example, if you are brainstorming in a big team, a board is a must for enhanced convenience. Online. Choose the platform where you will work with a template. It can be Google Docs, Omnigraffle, or the Stratygizer ...

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  16. Business Model Canvas: Definition, Benefits, and Examples

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  18. Using the Business Canvas Model for Project Management

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  22. Use of Business Model Canvas to Kickstart the project management

    The business model canvas is a tool to scope the changes in a company or the startup of a company. This will result in either adding information to an empty canvas or to outline changes from an old business plan to a new one. The Business Model Canvas describes 9 blocks of valuable knowledge to investigate before starting a business.

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