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Business Model Canvas (BMC) Template, Examples & Full Guide PPT

A product is only as good as the Business Model (BM) that supports it, and creating an innovative product requires an equally innovative BM. The Business Model Canvas is an easy visual tool your team can use to conceptualize and iterate the key aspects of your Business Model.

Business Model Canvas Template

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Stefan F.Dieffenbacher

Table of Contents

Business owners and entrepreneurs need all the tools they can get. At Digital Leadership, we believe the most powerful tool you can use is a Business Model Canvas. With it, you can solidify business plans and identify opportunities before investing potentially wasteful time and resources. A Business Model Canvas solidifies your business strategy and helps identify gaps in your intended activities. It’s more detailed than a value proposition canvas and is more likely to grant useful insights.

In this article, we discuss the various elements of the Business Model Canvas and explore why it can be such a useful tool for recognizing innovation and getting the most out of your resources.

  • Download The Business Model Canvas Template PPT (PowerPoint) Format : Business Model Canvas .pptx

At Digital Leadership, we understand the unique challenges businesses face and offer tailored solutions to address their specific needs. We provide business model strategy service as a catalyst for fostering innovation and adaptability within the Business Model Canvas.

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BMC Meaning: What is Business Model Canvas (BMC)

Business Model Canvas serves as a strategic management and entrepreneurial tool, enabling the description, design, challenge, invention, and pivoting of a business model. Derived from the bestselling management book, Business Model Generation, this approach is widely employed in both established organizations and startups globally.

Business Model Canvas Template

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You can now access the complete Business Model Canvas Package, including a full presentation, related models and instructions for use.

Business Model Canvas Template

When you design a Business Model, it is useful to lay out the assumptions or hypotheses that animate your business in a structured way. A Business Model Canvas helps you to do just that. The canvas helps you to easily understand your current Business Model, formulate business strategy and business goals , design a new Business Model, see if you have missed anything important, and compare your model to others.

The Canvas provides a framework or template for analyzing the distinct parts of your business operations. By using a Business Model Template , you ensure that you’re considering the entire way you do business.

Business Model Canvases are intended to be dynamic templates to which you can return to iterate current business plans or experiment with potential new ventures.

For a more hands-on approach, also check out our article on business model canvas examples , where we showcase real-world applications of the Business Model Canvas and its impact on businesses.

To dig into Business model canvas and its Building Blocks work with data-driven Personas. Our book, How to Create Innovation , discusses Personas at length. It’s a system that builds examples, of customers, based on the information you’ve gathered about their habits and identities. Personas help you understand who your customers are as people within their broad segments so you can better reach them and bring them value.

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The History and Building Blocks of the Business Model Canvas

The tool we’ve designed for this purpose is an iterated canvas based on the original Business Model Canvas created by Alexander Osterwalder “Strategyzer” and popularized by the Lean Startup movement. The Business Model Canvas is the most commonly used tool for developing BM. It draws on Michael Porter’s Value Chain maps and Peter Drucker’s theories of the firm (among other sources).

The Business Model Canvas has become the preferred tool for both start-ups and corporations since it allows a team to easily understand, discuss, and evaluate a Business Model, as well as to rapidly design or redesign a new one. It is attractive because it condenses years of business school knowledge and management consulting practice into a single page (with some straightforward questions to help you fill in each section).

So, once you start prototyping the product, form a parallel workstream that focuses on the business dimensions of your offering. The best way is to build a Business Model Canvas for each of the ideas and to conduct a validation of the most critical points that you identify with the help of the canvas.

These building blocks are the pieces of your business that allow it to function. One of the strengths of the Business Model Canvas is that it gives you a clear picture of which of these elements are within your control, and which are not. There’s no value judgment there—in fact, there are building blocks that, though they are essential to our success, are not part of our Core Activities and should not necessarily be under our control. Let’s take a look at these Building Blocks to better understand how they function within the broader Business Model Canvas.

(1) Key Resources

List your Key Resources, which can be categorized into physical, financial, intellectual property and unique people skill sets. Particularly focused on the core and differentiating strengths or capabilities that you may be able to leverage. One of the strangest realities of business leadership is that we often fail to recognize all of our available resources. Their placement in the Business Model Canvas ensures that we give them full consideration from multiple angles.

(2) Key Activities

Consider everything you and your team do during the day, and identify which of these activities are central—vital—to the progress of your business. For example, one of your people may spend part of the day responding to customer emails instead of developing a new product. Which of these is a Key Activity , and which may be better addressed using a third party?

Your Key Activities should never be outsourced: they’re far too important. But other, tangential activities that are necessary though not at the core of your business (copy machine maintenance, for example) can be handled by contractors or other outside entities.

(3) Key Partners

In an interconnected world, leveraging relationships with ecosystem partners has become increasingly important because it allows you to focus on your relative strengths. Think about the four different types of partnerships, including strategic alliances between non-competitors, coopetition (strategic partnerships between competitors), joint ventures to develop new businesses, and buyer-supplier relationships to assure reliable supplies.

Without your Key Partners , your Core Activities would be impossible. Relationships with your Key Partners, therefore, are vital to your success and should be nurtured and cared for appropriately.

(4) Cost Structure

For any business model, effectively managing the cost structure is crucial, but some business models are specifically designed around low-cost structures, as exemplified by “no frills” airlines.

Consider how you manage costs, and which costs are necessary and which are not. Identifying where all the resources are going will help you understand where you can best innovate.

(5) Distribution Channels

Rarely does a company deliver its goods or services to customers without some sort of third-party distribution channels.

Because they are often beyond our control, understanding the role Distribution Channels play in how we deliver value to our customers is important to understanding the overall Business Model.

(6) Customer Relationships

What type of customer relationship do you have? Think about options such as self-service, personal assistance, communities or Single Point of Contact.

Different businesses have different relationships with their customers, but they should never be positioned in opposition to each other. As much as you can, find ways to ensure that your business and your customers are on the same team. That’s what customers expect, and they’ll reward businesses that find ways to operate in this manner.

The clearest way of ensuring proper attention is paid to Customer Relationships is through the Jobs to be Done framework , which is a major segment of the UNITE eXtended Business Model Canvas , as we’ll soon discuss.

(7) Customer Segments

For whom are you creating value? For which customer segments and representative (data-driven) Personas? Who is your most important customer?   

(8) Revenue Streams

Revenue Streams outline how you earn money. What price is each of your Customer Segments truly willing to pay? Identify each possible Revenue Stream per Customer Segment. Think hard about the possible pricing mechanisms per Revenue Stream.

Surprisingly, pricing can often be a source of differentiation! Pricing mechanisms can include auctioning, bargaining, fixed-list prices, market- or volume-dependent prices, or yield management.

A Business Model can also involve transactional revenues resulting from one-time customer payments (e.g., a sale) or recurring payments (e.g., a subscription).

(9) Value Proposition

Value Proposition Canvas

Download the Complete eXtended Business Model Canvas Package, including instructions for putting it to work for you today.

The UNITE eXtended Business Model Canvas marries classic Business Model thinking with the latest understanding of what drives innovation. By highlighting a company’s successes, refining its aim, and incorporating business goals, decision-makers can properly affect lasting change to more fully realize the business’s potential for growing the value it brings to customers. It’s a powerful tool to employ when considering your overall business strategy , from day one, through years and years of business success.

We believe the UNITE eXended Business Model Canvas is the natural development of modern theories of business and innovation. While the ideas that form its underpinnings are complex, putting the Canvas to work for you is surprisingly easy. As such, no matter how much experience you have in business or innovation, you’ll be able to use the Canvas to expand your understanding of your business and its position in the world.

Understanding the Differences Between the Business Model Canvas and the Extended Version

The UNITE core Business Model Canvas describes how an organization creates, delivers, and captures value. But because it’s valuable to understand a Business Model using a wider view, the eXtended Business Model Canvas includes extra elements.

The UNITE eXtended Business Model Canvas contextualizes an organization’s Business Model by describing its underlying drivers: the customers’ needs, and the business’s team, including their structures, values, and culture. These are often under-considered by people close to the business. (It’s rather like being so close to a mountain that you don’t understand the mountain as a whole.)

Additionally, the eXtended Business Model Canvas helps you understand and articulate your Unfair Advantage , which is admittedly not part of a Business Model but is useful to help you enhance your competitive advantage. This approach is not like different business models which fail to offer a truly comprehensive, contextualized view of all your concerns and key activities.

How Does the Extended Business Model Canvas Work?

Like other Business Model Canvases , the eXtended Business Model Canvas template is a visual representation of a complete business. By completing each of the template’s pieces, you’ll gain a better understanding of the total Business Model you’re using, with a special focus on identifying and acting upon your organization’s unfair advantage in the marketplace. The template is positioned in a way that clarifies the relationships between each of your business’s pieces.

Indeed, the simple process of completing an eXtended Business Model Canvas is a valuable experience. For existing businesses, the Canvases can reveal opportunities for innovation and competitive advantage that managers may have not otherwise noticed.

Why Should Every Business Use the Business Model Canvas?

We believe in the efficacy of the Business Model Canvas and the process of completing canvases. There are many good reasons why every business should use the Business Model Canvas.

Those reasons include:

Easy to Use

Most of the sections of the Business Model Canvas can be completed with little-to-no additional work. When the person completing the Canvas doesn’t have the necessary information on hand, it should be a simple matter to collect.

If the information isn’t available, that’s a signal that you have some important holes in your business visibility.

Covers All Aspects of Your Business

The Business Model Canvas is extensive but simple. The Canvas reaches into all corners of your Business Model, including areas we don’t often consider for innovation opportunities.

Helps Communicate Your Business Model

A business’s operations can be opaque. The Canvas helps shed light on all the business’s shadowed places.

Because of the Canvas’s visual nature, it’s extremely useful for communicating your Business Model. That’s helpful any time you’re courting additional investment or deciding which direction to take your innovation.

The Business Model Canvas and The UNITE Models: A Complementary Approach for Innovation and Transformation

The Business Model Canvas (BMC ) and the UNITE Models represent complementary approaches for driving innovation and transformation within organizations, offering unique perspectives and tools to address various aspects of business strategy , design, and implementation. Let’s explore how these approaches work together synergistically:

The UNITE Value Proposition Canvas

The V alue Proposition Canvas is a part of the larger Business Model Canvas . It helps to project, test and build the business Value Proposition in a more structured and reflective way, just as the Business Model Canvas helps you do so during the process of designing a Business Model.

The Value Model is central to the Business Model because it summarizes your core Value Proposition(s) and related offerings as part of the overall Product System.

The Value Proposition Canva s is a fairly simple tool that allows you to establish a logical starting point for building and testing a product or service.

The canvas allows for managing and enhancing existing Value Propositions, as well as for creating new ones. The great strength of the tool is that it will encourage you to empathize with your customers and translate customer needs into a product or solution which solves an important but underserved Job to be Done .

The UNITE Organizational Culture Canvas

Organizational Culture Canvas

You can now access the complete Orga nizational Culture Canvas Package, including a full presentation, related models and instructions for use.

Culture Canvas

We created the Organizational Culture Canvas in collaboration with more than 30 experts from academia and industry to identify and map the key aspects of an organization’s culture. When we set out to understand, describe, discuss, question, shape, and renew our organizational culture, we need a tool that will render culture understandable, tangible, and actionable.

The Culture Canvas is such a tool. It enables a group to immediately understand the most important factors and how they interact. Although we will focus on applying the Organizational Culture Canvas to the field of innovation, you can apply this canvas to any type of organization.

Use the UNITE Culture Canvas to establish values, principles, rules, and rituals that support your team in developing this habit.

The UNITE Jobs to Be Done

Jobs to be Done Customer's Job Statement

You can now access the complete Job To Be Done Customer’s Job Statement Package, including a full presentation, related models and instructions for use.

Jobs-to-be-Done Statement_Map

If we as marketers, decision-makers, or product developers want to improve business results, we have to understand the jobs that arise in the lives of our customers, for which they hire certain solutions. Understanding who these people are in the wrong unit of analysis.

What we really want to know is what they are trying to get done. Unsurprisingly, the underlying theory behind this is called Jobs to be Done (JTBD). At the centre of the theory is the “job”: a “job” is the fundamental problem a customer needs to resolve in a given situation.

The JTBD concept is the revolution in how we think about business. Instead of conceiving a product or service and then stalking an audience, we look at customers first and build a business around their needs. While no investment is ever guaranteed, developing business models in this way at least has, at its core, a customer who might be looking for a problem’s solution already. We can build our success around customers’ motivation to relieve their pain points.

Jobs to be Done offers two key insights:

  • A mental model and a structured approach to understanding the needs of your customers (looking good instead of weight management, good entertainment instead of TV, leisure instead of a sailboat, etc.) and which criteria they use to measure the outcome.                                                                                
  • A methodology to identify the most important but underserved customer needs in a quantifiable and verifiable way. Basically, it helps you understand what outcomes customers truly value, but are not yet able to achieve.                                                                                                                    

JTBD takes the guesswork out of innovation by offering a precise understanding of where you can innovate to solve a big unmet need and your progress towards a successful outcome.

Most innovations fail since they try to solve an unknown problem for an unknown customer. Through Jobs to be Done , you can eliminate bias and data noise, and instead precisely focus on needs that are unmet, innovative potential that already has a prospective audience.

Frequently Asked Questions

1) what are the 9 components of the business model canvas.

The nine components of the Business Model Canvas are:

  • Customer Segments
  • Value Propositions
  • Customer Relationships
  • Revenue Streams
  • Key Resources
  • Key Activities
  • Key Partners
  • Cost Structure

2) What are the 4 types of business models?

The four types of Business Models are:

  • Business-to-Business
  • Business-to-Consumer
  • Subscription

3) What makes up a good business model canvas?

A good Business Model Canvas offers a complete view of your overall business strategy , identifies weaknesses in how you intend to deliver value, and points to opportunities for innovation and growth.

4) How do the Business Model Canvas and UNITE Models complement each other?

By building on each other, the Business Model Canvas and the UNITE Models offer a complete view of your operations to remove blind spots and highlight opportunities for continued growth.

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Business Models

Explore our extensive Business Models templates collection, tailored for PowerPoint and Google Slides. Elevate your business presentations with our 37 professional, editable designs, crafted to showcase your ideas effectively.

Every successful enterprise builds on a well-defined business model. Our templates cater to this crucial need, offering a wide array of strategic frameworks. Dive into SWOT analysis, BCG matrix, PESTLE/PESTEL Analysis, 4P Marketing Mix, and Porter’s Five Forces Model to cover all aspects of business planning and strategy.

Our selection also includes VRIO Framework, AIDA analysis, GOSPA Planning, SOSTAC marketing model, STP marketing model, SOAR analysis, and Galbraith’s star model. These tools are vital for modern business strategies, enhancing areas like marketing, operational planning, and strategic management.

We’ve also packed our ‘Business Models Templates’ with specialized resources for goal setting and performance measurement, such as the OKR framework. Each template is not only informative but also engaging, designed to captivate and influence your audience.

Our ‘Business Models Templates’ range equips you to present complex business strategies effectively. They are ideal for entrepreneurs, corporate executives, and academics involved in business strategy.

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Business Model Canvas Templates for PowerPoint & Google Slides

The Business Model Canvas is a strategic management tool used to organize and define a company’s business model. Through the Business Model Canvas Template you will be able to describe the content, structure and actions aimed at creating value and exploiting business opportunities.

Download pre-designed Business Model Canvas templates for PowerPoint inspired by the strategic management and entrepreneurial tool created by Alex Osterwalder.

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3D Perspective Business Model Canvas PowerPoint Template

Alternatively, individuals, entrepreneurs and business strategists can download other Business Model Canvas Templates and Lean Canvas slides for presentations.

How to use the Business Model Canvas Template?

To use the Business Model Canvas Template effectively, you must learn what each of its strategic blocks is for. This way you will be able to complete them with valuable information about your company. Visit our complete guide with Business Model Canvas Examples .

What are the components of the Business Model Canvas?

In the Business Model Canvas Template we can see the global vision of the business model based on the following 9 items and how they are interrelated:

  • Value Proposition component
  • Customer Relationships components
  • Distribution Channels
  • Customer Segments
  • Revenue Streams
  • Key Activities
  • Key Resources
  • Key Partners
  • Cost Structure

Why do I need a Business Model Canvas Template?

It is necessary to have a Business Model Canvas Template for different reasons: to understand very clearly the value proposition to be offered, to segment and know the Buyer Persona the company is targeting, to define the content distribution channels and how the relationship with the Buyer Persona will be. At the same time, it allows to confirm that the company to be created will be sustainable in the environment in which it is developed, among other things.

What is the next step after a business model creation?

Once the Business Model Canvas Template has been created, you can begin to conduct pilot tests to confirm your assumptions in each of the sections of the business plan in which it is included.

These tests will provide you with valuable information to learn and scale each of its strategic areas.

Where do i find a Free Business Model Canvas Template?

At SlideModel, our goal is to provide you with the tools you need to create professional presentations without hassle. In our Free Templates section, you can find a Free Business Model Canvas Template to organize and create the business model for your next projects.

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The term business model refers to a company’s plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses. Business models are important for both new and established businesses. They help new, developing companies attract investment, recruit talent, and motivate management and staff. Established businesses should regularly update their business plans or they’ll fail to anticipate trends and challenges ahead. Business plans help investors evaluate companies that interest them.

A business model is a high-level plan for profitably operating a business in a specific marketplace. A primary component of the business model is the value proposition. This is a description of the goods or services that a company offers and why they are desirable to customers or clients, ideally stated in a way that differentiates the product or service from its competitors.

A new enterprise’s business model should also cover projected startup costs and financing sources, the target customer base for the business, marketing strategy, a review of the competition, and projections of revenues and expenses. The plan may also define opportunities in which the business can partner with other established companies.

Successful businesses have business models that allow them to fulfill client needs at a competitive price and a sustainable cost. Over time, many businesses revise their business models from time to time to reflect changing business environments and market demands.

Every successful business model has nine building blocks, which include: key partners, key activities, key resources, cost structure, value proposition, customer relationships, customer segments, channels and revenue streams. Our business model slides in this PowerPoint template is no different. Launch your business with confidence after using this template to guide your growth strategy.

Whether you’re starting your own business, eyeing potential investors or refining your existing business, having the right blueprint is key to setting a solid foundation. Our template has six design variations to visually show your business model, growth strategy and cultural values.

This template will be useful for startup executives when developing a company management model. You can describe the business model in detail and prepare a presentation to meet with potential investors. This template has all the necessary tools to build a professional presentation and it will not be difficult for you to prepare a professional slide for your business model of company management.

Also, this template will be useful for investment companies when preparing a report on the activities and structure of joint stock companies. Mergers and crisis managers can also use the slides of this template in their day-to-day work.

Business trainers can use this template when preparing a course on building business management models and developing an enterprise management strategy. Also, this template will be useful for the head of companies when preparing for a strategic session with the company’s shareholders. For example, you can prepare your new company development strategy and describe in detail cash flows, functional relationships within the company, sales markets, and resources required.

This business model template is ideal for companies of all sizes. You can also use this template for internal purposes, as well as in presentations to potential investors, shareholders, internal stakeholders and executive team members. Visually-appealing, well-organized and structured, every presenter is sure to effectively pitch the value of their business using this template. Business Model Slides template will be a worthy addition to your collection of professional presentations.

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3 Ways to Illustrate Business Model Canvas Using PowerPoint

Last Updated on December 6, 2022 by

Explaining how the company operates can get pretty complex. One of the frequently used business model frameworks is Business Model Canvas (Alex Osterwalder describes it in his book “Business Model Generation”). This model effectively grasps all key elements of how a company operates and enables one to see the big picture.

Adding catchy visuals and diagrams to illustrate this framework will help you get people’s interest and support understanding of the specific business model. Here we share ideas of how you can present the full picture and details of BMC on a slide in a clear and simple way.

All slide examples below are from Business Model Canvas PPT template . Click the pictures to see the details.

When designing the graphics for the canvas, we wanted to help people use this model without extra hassle. So they can focus on fulling the canvas content, not creating the graphics from scratch. Tell us, if we managed :). One of the first user testimonials was:

Your graphics are a lifesaver! I’ve always struggled with recreating it in PowerPoint. I wasn’t looking for a Business Model Canvas template because it never occurred to me that there was one. So I feel very lucky about the discovery.

– Terry Ribb, Relevens, Inc.

Business Model Canvas in a nutshell

Business Canvas is a well-known strategic management tool for developing new business models (e.g. for start-ups) or documenting and improving existing ones. BMC is a widely used framework by companies and startups to analyze their strategy and to apply the lean startup approach.

The Business Model Canvas is based on a simple visual representation of core activities, resources, and partners. All elements are put into one model, as a kind of a jigsaw puzzle. Their position reflects the activities flow, from resources, activities, value definition, towards customers. It includes all the main players in the functioning of the company.

Colorful business model canvas illustrated with icons

The Business Model Canvas framework helps a company align its activities and understand the potential trade-offs. You can explain the core elements that drive the business on a single page using this model (read more about BMC here ).

Unlike other business models (SWOT or PEST for example), Business Model Canvas includes a set of important internal factors driving a business (value proposition, revenue streams, or customer relationships) that proved to be key success factors in the rising of companies such as Amazon or Nescafe.

Presenting Components of Business Model Canvas

The Canvas has nine elements and together they provide a pretty coherent view of a business’s key drivers:

  • Customer Segments : Who are the customers? What do they think? See? Feel? Do?
  • Value Propositions : What’s compelling about the proposition? Why do customers buy, and use?
  • Channels: How are these propositions promoted, sold, and delivered? Why? Is it working?
  • Customer Relationships : How do you interact with the customer through their ‘journey’?
  • Revenue Streams : How does the business earn revenue from the value propositions?
  • Key Activities : What uniquely strategic things does the business do to deliver its proposition?
  • Key Resources : What unique strategic assets must the business have to compete?
  • Key Partnerships : What can the company not do so it can focus on its Key Activities?
  • Cost Structure : What are the business’ major cost drivers? How are they linked to revenue?

For visualizing each part of the business canvas you can use slides with elegant outline icons and virtual sticky notes:

business canvas key partners value proposition cost structure ppt

For presenting the whole model on one slide we prepared slide versions in three different visual styles:

Light modern style with Outline Icons

You can use this light mono-color deck with subtle yet modern outline icons when you want to focus on section names and content. Such a template will suit any presentation and audience.

Simple flat sections and sticky notes

Use simple flat icons when you want to make them small, as they still remain recognizable even if shrunk to a pretty small size. The sticky note graphics create a nice natural-looking design of the whole canvas. You can alter the color of the note cards, they are all editable vector shapes.

Getting the creative look with hand-drawn canvas symbols

The third variation you can reuse is with creative scribble icons. You can choose the multi-color canvas layout or the one which has all 9 sections colored in the same way.

Business Model Canvas creative scribble icons powerpoint

Choose a canvas style that fits your business or product better, whether you want to create a more unique, modern, or functional presentation.

Putting the Business Model Canvas in PowerPoint format and asking your whole team to collaborate on it is a great way to make sure that everyone understands what you have in mind. A collaborative approach brings up new ideas as well.

Graphical Resources – the BMC template

To help you prepare fresh attractive slides, we designed this universal editable slides deck for presenting a business model canvas. It’s designed for PowerPoint, however, you can import this template to other presentation software, e.g. Google Slides or Keynote.

What’s inside Business Model Canvas PPT Template?

The template contains pre-designed layouts and visuals for each canvas element. You can easily replace existing images, adapt content to describe your business idea, and encourage others to brainstorm on it.

The PowerPoint template with diagrams and symbols representing all nine areas of BMC contains:

  • Diagrams overview with all areas on one slide with a place for short text or editable post-it notes.
  • 9 single slides to describe each part in detail with more space for text.
  • Over 20 icon symbols represent key activities, key resources, partner networks, and value propositions. Followed by channels, customer segments, and relationships.
  • The template contains slides in three graphical styles: unique scribble graphics, modern outline icons, and simple flat icons.

If you enjoyed the graphics above, you can see the full deck and get it here:

See Business Model Canvas

Canvas PowerPoint Slide Redesign Guide

See four tips on how to design creative BMC slides:

You can download this redesign guide here:  How to Creatively Present Business Model Canvas on a PowerPoint slide (a PDF document) .

If you need more business frameworks a roadmap, business review, SWOT, or PEST, then visit our  Business & Marketing diagrams page .

Looking for a single symbol to illustrate the business concept, like strategy, competition, process, or other? Check our blog , where we gathered ideas for illustrating abstract concepts with only one icon.

3 thoughts on “3 Ways to Illustrate Business Model Canvas Using PowerPoint”

Great read! I’ve been using the business model canvas and it’s interesting to see the various styles you can use. Thanks!

Hi! Would you please send me the editable business model canvas? IT’s great!

Hi, thanks for your interest! You can get editable BMC graphics here: https://www.infodiagram.com/diagrams/business-model-canvas-ppt-template.html

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Canvas Business Model Infographics

Free google slides theme and powerpoint template.

The Canvas Business Model was created by Swiss entrepreneur and author Alexander Osterwalder. It is a widely used template for developing new business models. If you are also creating yours, take a look at this infographic template inspired by this strategic management model that will help you put your ideas in order. We have included different formats and colors that you can customize to your liking.

Features of these infographics

  • 100% editable and easy to modify
  • 31 different infographics to boost your presentations
  • Include icons and Flaticon’s extension for further customization
  • Designed to be used in Google Slides, Microsoft PowerPoint and Keynote
  • 16:9 widescreen format suitable for all types of screens
  • Include information about how to edit and customize your infographics

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Business model development ppt presentation examples

Do you want to prepare a professional PPT to represent the idea of business model development? Well if yes, then select our ready to use business model development PowerPoint slide outlined by highly professional presentation designers. Our presentation specialists have utilized the visuals of circles that will support you to showcase a framework of three segments. They have also employed the structure icon, strategy icon, management symbol, and operations icon to craft this business framework presentation template slide. With the aid of this organization model development presentation slide, you will be able to illustrate the procedure of how an organization creates, supply, and profitably gain value. With the utilization of this organization framework development in your PPT, you will able to highlight the idea of business model development and moderation. This business strategic development PPT slide highlights various factors of organization model which are competitive operational priorities, structure, operations, knowledge management, and strategy. Use this presentation design to outline a presentation on business process, organizational model, business change management, business growth, organizational planning, strategic management, value management, and revenue model. Directions are conveyed in a crystal clear fashion by our Business Model Development Ppt Presentation Examples. It facilitates comprehension of instructions.

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Presenting Business Model Example Of PPT. Template design with multiple nodes ae available. Educational slides are provided with the slide design for editing guidance. Utilize of top quality graphics and symbols layouts which are editable in PowerPoint. Template is easy to download. Template can be saved to JPG and PDF formats. Template design works fine with Google Slides and other online applications. The quality of graphics does not blur when projected on the large screen. Easy to add the organization logo, name, and trademark for individualization. Premium product support is available.

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by Earnest Carpenter

July 22, 2021

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July 21, 2021

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What Is a Business Model?

Understanding business models, evaluating successful business models, how to create a business model.

  • Business Model FAQs

The Bottom Line

Learn to understand a company's profit-making plan

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Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

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Investopedia / Laura Porter

The term business model refers to a company's plan for making a profit . It identifies the products or services the business plans to sell, its identified target market , and any anticipated expenses . Business models are important for both new and established businesses. They help new, developing companies attract investment, recruit talent, and motivate management and staff.

Established businesses should regularly update their business model or they'll fail to anticipate trends and challenges ahead. Business models also help investors evaluate companies that interest them and employees understand the future of a company they may aspire to join.

Key Takeaways

  • A business model is a company's core strategy for profitably doing business.
  • Models generally include information like products or services the business plans to sell, target markets, and any anticipated expenses.
  • There are dozens of types of business models including retailers, manufacturers, fee-for-service, or freemium providers.
  • The two levers of a business model are pricing and costs.
  • When evaluating a business model as an investor, consider whether the product being offered matches a true need in the market.

A business model is a high-level plan for profitably operating a business in a specific marketplace. A primary component of the business model is the value proposition . This is a description of the goods or services that a company offers and why they are desirable to customers or clients, ideally stated in a way that differentiates the product or service from its competitors.

A new enterprise's business model should also cover projected startup costs and financing sources, the target customer base for the business, marketing strategy , a review of the competition, and projections of revenues and expenses. The plan may also define opportunities in which the business can partner with other established companies. For example, the business model for an advertising business may identify benefits from an arrangement for referrals to and from a printing company.

Successful businesses have business models that allow them to fulfill client needs at a competitive price and a sustainable cost. Over time, many businesses revise their business models from time to time to reflect changing business environments and market demands .

When evaluating a company as a possible investment, the investor should find out exactly how it makes its money. This means looking through the company's business model. Admittedly, the business model may not tell you everything about a company's prospects. But the investor who understands the business model can make better sense of the financial data.

A common mistake many companies make when they create their business models is to underestimate the costs of funding the business until it becomes profitable. Counting costs to the introduction of a product is not enough. A company has to keep the business running until its revenues exceed its expenses.

One way analysts and investors evaluate the success of a business model is by looking at the company's gross profit . Gross profit is a company's total revenue minus the cost of goods sold (COGS). Comparing a company's gross profit to that of its main competitor or its industry sheds light on the efficiency and effectiveness of its business model. Gross profit alone can be misleading, however. Analysts also want to see cash flow or net income . That is gross profit minus operating expenses and is an indication of just how much real profit the business is generating.

The two primary levers of a company's business model are pricing and costs. A company can raise prices, and it can find inventory at reduced costs. Both actions increase gross profit. Many analysts consider gross profit to be more important in evaluating a business plan. A good gross profit suggests a sound business plan. If expenses are out of control, the management team could be at fault, and the problems are correctable. As this suggests, many analysts believe that companies that run on the best business models can run themselves.

When evaluating a company as a possible investment, find out exactly how it makes its money (not just what it sells but how it sells it). That's the company's business model.

Types of Business Models

There are as many types of business models as there are types of business. For instance, direct sales, franchising , advertising-based, and brick-and-mortar stores are all examples of traditional business models. There are hybrid models as well, such as businesses that combine internet retail with brick-and-mortar stores or with sporting organizations like the NBA .

Below are some common types of business models; note that the examples given may fall into multiple categories.

One of the more common business models most people interact with regularly is the retailer model. A retailer is the last entity along a supply chain. They often buy finished goods from manufacturers or distributors and interface directly with customers.

Example: Costco Wholesale

Manufacturer

A manufacturer is responsible for sourcing raw materials and producing finished products by leveraging internal labor, machinery, and equipment. A manufacturer may make custom goods or highly replicated, mass produced products. A manufacturer can also sell goods to distributors, retailers, or directly to customers.

Example: Ford Motor Company

Fee-for-Service

Instead of selling products, fee-for-service business models are centered around labor and providing services. A fee-for-service business model may charge by an hourly rate or a fixed cost for a specific agreement. Fee-for-service companies are often specialized, offering insight that may not be common knowledge or may require specific training.

Example: DLA Piper LLP

Subscription

Subscription-based business models strive to attract clients in the hopes of luring them into long-time, loyal patrons. This is done by offering a product that requires ongoing payment, usually in return for a fixed duration of benefit. Though largely offered by digital companies for access to software, subscription business models are also popular for physical goods such as monthly reoccurring agriculture/produce subscription box deliveries.

Example: Spotify

Freemium business models attract customers by introducing them to basic, limited-scope products. Then, with the client using their service, the company attempts to convert them to a more premium, advance product that requires payment. Although a customer may theoretically stay on freemium forever, a company tries to show the benefit of what becoming an upgraded member can hold.

Example: LinkedIn/LinkedIn Premium

Some companies can reside within multiple business model types at the same time for the same product. For example, Spotify (a subscription-based model) also offers a free version and a premium version.

If a company is concerned about the cost of attracting a single customer, it may attempt to bundle products to sell multiple goods to a single client. Bundling capitalizes on existing customers by attempting to sell them different products. This can be incentivized by offering pricing discounts for buying multiple products.

Example: AT&T

Marketplace

Marketplaces are somewhat straight-forward: in exchange for hosting a platform for business to be conducted, the marketplace receives compensation. Although transactions could occur without a marketplace, this business model attempts to make transacting easier, safer, and faster.

Example: eBay

Affiliate business models are based on marketing and the broad reach of a specific entity or person's platform. Companies pay an entity to promote a good, and that entity often receives compensation in exchange for their promotion. That compensation may be a fixed payment, a percentage of sales derived from their promotion, or both.

Example: social media influencers such as Lele Pons, Zach King, or Chiara Ferragni.

Razor Blade

Aptly named after the product that invented the model, this business model aims to sell a durable product below cost to then generate high-margin sales of a disposable component of that product. Also referred to as the "razor and blade model", razor blade companies may give away expensive blade handles with the premise that consumers need to continually buy razor blades in the long run.

Example: HP (printers and ink)

"Tying" is an illegal razor blade model strategy that requires the purchase of an unrelated good prior to being able to buy a different (and often required) good. For example, imagine Gillette released a line of lotion and required all customers to buy three bottles before they were allowed to purchase disposable razor blades.

Reverse Razor Blade

Instead of relying on high-margin companion products, a reverse razor blade business model tries to sell a high-margin product upfront. Then, to use the product, low or free companion products are provided. This model aims to promote that upfront sale, as further use of the product is not highly profitable.

Example: Apple (iPhones + applications)

The franchise business model leverages existing business plans to expand and reproduce a company at a different location. Often food, hardware, or fitness companies, franchisers work with incoming franchisees to finance the business, promote the new location, and oversee operations. In return, the franchisor receives a percentage of earnings from the franchisee.

Example: Domino's Pizza

Pay-As-You-Go

Instead of charging a fixed fee, some companies may implement a pay-as-you-go business model where the amount charged depends on how much of the product or service was used. The company may charge a fixed fee for offering the service in addition to an amount that changes each month based on what was consumed.

Example: Utility companies

A brokerage business model connects buyers and sellers without directly selling a good themselves. Brokerage companies often receive a percentage of the amount paid when a deal is finalized. Most common in real estate, brokers are also prominent in construction/development or freight.

Example: ReMax

There is no "one size fits all" when making a business model. Different professionals may suggest taking different steps when creating a business and planning your business model. Here are some broad steps one can take to create their plan:

  • Identify your audience. Most business model plans will start with either defining the problem or identifying your audience and target market . A strong business model will understand who you are trying to target so you can craft your product, messaging, and approach to connecting with that audience.
  • Define the problem. In addition to understanding your audience, you must know what problem you are trying to solve. A hardware company sells products for home repairs. A restaurant feeds the community. Without a problem or a need, your business may struggle to find its footing if there isn't a demand for your services or products.
  • Understand your offerings. With your audience and problem in mind, consider what you are able to offer. What products are you interested in selling, and how does your expertise match that product? In this stage of the business model, the product is tweaked to adapt to what the market needs and what you're able to provide.
  • Document your needs. With your product selected, consider the hurdles your company will face. This includes product-specific challenges as well as operational difficulties. Make sure to document each of these needs to assess whether you are ready to launch in the future.
  • Find key partners. Most businesses will leverage other partners in driving company success. For example, a wedding planner may forge relationships with venues, caterers, florists, and tailors to enhance their offering. For manufacturers, consider who will provide your materials and how critical your relationship with that provider will be.
  • Set monetization solutions. Until now, we haven't talked about how your company will make money. A business model isn't complete until it identifies how it will make money. This includes selecting the strategy or strategies above in determining your business model type. This might have been a type you had in mind but after reviewing your clients needs, a different type might now make more sense.
  • Test your model. When your full plan is in place, perform test surveys or soft launches. Ask how people would feel paying your prices for your services. Offer discounts to new customers in exchange for reviews and feedback. You can always adjust your business model, but you should always consider leveraging direct feedback from the market when doing so.

Instead of reinventing the wheel, consider what competing companies are doing and how you can position yourself in the market. You may be able to easily spot gaps in the business model of others.

Criticism of Business Models

Joan Magretta, the former editor of the Harvard Business Review, suggests there are two critical factors in sizing up business models. When business models don't work, she states, it's because the story doesn't make sense and/or the numbers just don't add up to profits. The airline industry is a good place to look to find a business model that stopped making sense. It includes companies that have suffered heavy losses and even bankruptcy .

For years, major carriers such as American Airlines, Delta, and Continental built their businesses around a hub-and-spoke structure , in which all flights were routed through a handful of major airports. By ensuring that most seats were filled most of the time, the business model produced big profits.

However, a competing business model arose that made the strength of the major carriers a burden. Carriers like Southwest and JetBlue shuttled planes between smaller airports at a lower cost. They avoided some of the operational inefficiencies of the hub-and-spoke model while forcing labor costs down. That allowed them to cut prices, increasing demand for short flights between cities.

As these newer competitors drew more customers away, the old carriers were left to support their large, extended networks with fewer passengers. The problem became even worse when traffic fell sharply following the September 11 terrorist attacks in 2001 . To fill seats, these airlines had to offer more discounts at even deeper levels. The hub-and-spoke business model no longer made sense.

Example of Business Models

Consider the vast portfolio of Microsoft. Over the past several decades, the company has expanded its product line across digital services, software, gaming, and more. Various business models, all within Microsoft, include but are not limited to:

  • Productivity and Business Processes: Microsoft offers subscriptions to Office products and LinkedIn. These subscriptions may be based off product usage (i.e. the amount of data being uploaded to SharePoint).
  • Intelligent Cloud: Microsoft offers server products and cloud services for a subscription. This also provide services and consulting.
  • More Personal Computing: Microsoft sells physically manufactured products such as Surface, PC components, and Xbox hardware. Residual Xbox sales include content, services, subscriptions, royalties, and advertising revenue.

A business model is a strategic plan of how a company will make money. The model describes the way a business will take its product, offer it to the market, and drive sales. A business model determines what products make sense for a company to sell, how it wants to promote its products, what type of people it should try to cater to, and what revenue streams it may expect.

What Is an Example of a Business Model?

Best Buy, Target, and Walmart are some of the largest examples of retail companies. These companies acquire goods from manufacturers or distributors to sell directly to the public. Retailers interface with their clients and sell goods, though retails may or may not make the actual goods they sell.

What Are the Main Types of Business Models?

Retailers and manufacturers are among the primary types of business models. Manufacturers product their own goods and may or may not sell them directly to the public. Meanwhile, retails buy goods to later resell to the public.

How Do I Build a Business Model?

There are many steps to building a business model, and there is no single consistent process among business experts. In general, a business model should identify your customers, understand the problem you are trying to solve, select a business model type to determine how your clients will buy your product, and determine the ways your company will make money. It is also important to periodically review your business model; once you've launched, feel free to evaluate your plan and adjust your target audience, product line, or pricing as needed.

A company isn't just an entity that sells goods. It's an ecosystem that must have a plan in plan on who to sell to, what to sell, what to charge, and what value it is creating. A business model describes what an organization does to systematically create long-term value for its customers. After building a business model, a company should have stronger direction on how it wants to operate and what its financial future appears to be.

Harvard Business Review. " Why Business Models Matter ."

Bureau of Transportation Statistics. " Airline Travel Since 9/11 ."

Microsoft. " Annual Report 2023 ."

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Developing a Business Model

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Developing a Business Model

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chapter 5 developing an effective business model

Chapter 5 Developing an effective business model The importance of a business model

Jan 06, 2020

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Chapter 5 Developing an effective business model The importance of a business model How business models emerge Components of an effective business model. The importance of a business model A business model is a firm` s plan for how it competes, uses its

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Chapter 5 Developing an effective business model The importance of a business model How business models emerge Components of an effective business model

The importance of a business model A business model is a firm` s plan for how it competes, uses its resources, structures its relationships, interfaces with customers and creates value to sustain itself on the basis of the profit it earns. Almost all firms partner with others to make their business model work. Example: Dell Inc. needs the cooperation of its suppliers, shippers, customers and many others to make its business model possible. If Dell` s suppliers were not willing to deliver up-to-date parts to the company on a just-in- time basis, Dell would have higher inventory costs and wouldn` t be able to ship its products and to have competitive prices. Dell works closely with its suppliers and motivates them.

There is no standard business model, no rules that dictate how a firm in a particular industry should compete. It is dangerous for a company to assume that it can be successful by simply copying the business model of another firm because it may be difficult to determine what another firm` s business model is and a firm`s business model is dependent on the resources and capabilities it possesses. The development of a firm` s business model follows the feasibility analysis stage of launching a new venture but comes before the completion of a business plan. Having a business model is important because: • It serves as an extension of feasibility analysis (it asks the question: Does the business make sense?)

It focuses attention on how all the elements of a business fit together and constitute a working whole • It describes why the network of participants needed to make a business idea viable is willing to work together Some business model are developed so that other competitors will not be able to understand how the firm makes money. Example: Looking at Google` s Web site it is not obvious how the firm generates income. It makes money through carefully placing discreet ads that run alongside search results; licensing its search technology to portals such as America Online; licensing its search technology to companies for internal search engines. Google keeps its business model secret to other firms from duplicating what it is doing.

Once the model is clearly determined, the entrepreneur should diagram it on paper, examine it and ask the following questions: Does my business model make sense? • Will the businesses I need as partners participate? • If I can get partners to participate, how motivated will they be? • If I get customers, how motivated will they be to do business with my firm? • Can I motivate my partners and customers at a sufficient scale to cover the overhead of my business and make a profit? • How distinct will my business be? Will it be easy for a larger competitor to steal my idea?

If the answers to each of these questions is not satisfactory, the business model should be revised or abandoned. A business model is viable only if the suppliers, partners and customers will consider as being advantageous for them to work with this firm. Example: Web House Club was launched by Priceline.com founder in the fall of 1999and failed just a year later. Priceline.com allows customers to "bid“ for airline tickets, hotel rooms and home mortgages. Web House was Established to imitate Priceline.com` s business model and extend it to a grocery store items. Web House worked like this: A shopper got a plastic card with a unique number and a magnetic strip from a local grocery store and it was used to activate an account on the Web House Internet site. The shopper could than make a bid for a supermarket item. The shopper could specify the price but not the brand. In few seconds he would learn whether a manufacturer was willing to accept the price. If so, the shopper would pay the item at a participating store using the 

Web House card. The item could be any brand. By aggregating shoppers ` demands, Web House could go to manufacturers and negotiate discounts. The firm could then pass along the discounts to consumers and take a small fee for bringing buyers and sellers together. This business model did not work for Web Housefor several reasons: • Itassumed that manufacturers would be willing to participate. The Web Housebusiness model taught customers to select products on the basis of price rather than brand identity. So why would any manufacturer want to help Web Housedo that? • The Web House business model assumed that millions of shoppers would take the time to sit down at the computers and bid on grocery store items. But how many people have time to sit down, log on their computer and interact with a Web site to save 50 cents on a box of cereals without being able to choose the brand?

The firm could not motivate its suppliers or customers to participate at a sufficient scale to support the overhead of the business. Web House was asking suppliers to act against their self-interest and was asking shoppers to take too much time to save too little money. How business models emerge The value chain explains how business models emerge and develop. By studying a product` s or service `s value chain a firm can identify ways to create additional value and assess whether it has the means to do so. Example: Dell learned that it has customers who want technical support available 24-hour-per-day, seven days a week and these customers are willing to pay extra to get it. Dell realized that it could add value to the value chain for selling computers by developing the service segment to include 24- hour-per-day, seven days a week technical support. This could work only if Dell has enough trained personnel to offer 24/7 support.

Value chain analysis is also helpful in identifying opportunities for new businesses and in understanding how business models emerge. Most products and services are produced in a complex supply chain that involves many firms rather than a single firm. Because of this a value chain tends to be identified more with a product or service, rather than a particular firm. Entrepreneurs look at the value chain of a product or service to identify where the value chain can be made more effective or where additional value can be added. This type of analysis may focus on: • A single primary activity of the value chain (such as marketing and sales).

The interface between one stage of the value chain and another, such as the interface between operations (which are the activities required to manufacture a product) and outbound logistics (which are the activities required to warehouse and ship it). • One of the support activities, such as human resource management. If a product` s value chain (like a computer) can be strengthened in any one of these areas, it may represent an opportunity for a new venture to perform that activity. There are examples of entrepreneurial firms that have enhanced the value chain of an existing product or service by focusing on one of three previously mentioned areas:

Firms founded to enhance a primary activity: a). Outbound logistics: FedEx, UPS the reason a new venture was started: to provide new ways to warehouse and move products effectively to the end users b). Marketing and sales: Home depot, Wal-Mart to provide new ways to market and sell products c). Inbound logistics: Airborne Logistics, Excel to provide efficient material management, warehousing and inventory control. • Firms founded to enhance a support activity: a). Firm infrastructure: Boston Consulting Group to provide management support

b). Human resource management: Administaff, Paychex to provide payroll, tax, benefits administration and other human resource services c). Technological development: EDS, Scient to help firms integrate new technologies into existing business systems. • Firms founded to enhance the interface between one stage of the value chain and another: a). Inbound logistics/operations: Ariba, Chem Connect to help firms with the interface between inbound logistics and operations b). Operations/outbound logistics: DHL Worldwide Express, UPS to help firms with the interface between operations and outbound logistics

A firm can be formed to strengthen the value chain for a product, only if a viable business model can be created to support it. Example: Michael Dell` s idea of selling computers directly to end users would not have been possible if it were not low-cost shippers (such as UPS) and manufacturers of components who were willing to sell their products to him.

Components of an effective business model An effective business model consists of the following components: • Core strategy (how a firm competes) • Strategic resources (how a firm acquires and uses its resources) • Partnership network (how a firm structures its partnerships) • Customer interface (how a firm interacts with its customers) The core strategydescribes how a firm competes relative to its competitors and its elements are: the firm` s mission statement, the product/marketing scope, the basis for differentiation. Mission statement describes why the firm exists and what its business model is. It is important that a firm` s mission not to be defined too narrowly because the business model that merges may become too singularly focused and resistant to change,

Example: Xerox, The Document Company, has an implicit mission that focuses on copiers and copying. This mission prevented the firm from seeing an opportunity that might fit its business model. Xerox viewed itself as a company that reproduces documents that already existed, causing the firm to be a late entrant into the market for computer printers, which print original documents stored electronically. This narrow focus allowed Hewlett-Packard to gain control of the printer market. A company` s product/market scope defines the products and markets on which it will concentrate. The choice of a product has an important impact on a firm` s business model. Examples: a). When Amazon.com was created, it was an online bookseller but has evolved to sell other product lines, including CDs, DVDs, jewelry and apparel.

b). Yahoo started as a company offering free Internet search services in an attempt to generate enough traffic to sell advertising space on its Web site. The business model worked until the e-commerce burst in 2000 and advertising revenues declined. Yahoo revised its business model to include more subscription services to generate more income. The markets on which a company focuses are an important element of its core strategy. Examples: a). Because 80 percent of Dell` s customers are firms and government agencies, Dell has built in his business model sophisticated forms of customer support, such as “Premier Pages“ program which includes Web pages for individual corporate customers. These pages allow customers to search for products, place orders and configure products online. 

b). In contrast, Gateway` s business model is focused on individual customers, small businesses and first-time computer buyers. It has learned that most of first-time buyers want to see and touch a computer before they purchase it, leading to the creation of gateway stores. It also offered computer training. In early 2004, Gateway closed its stores, indicating that it hadn` t the success with them that it had intended. The failure suggests that Gateway` s business model will continue to evolve to find a product/market scope through which it can generate value for customers. The basis for differentiation: it is important that a new venture differentiates itself from its competitors in some way that is important to its customers. Firms choose one of two generic strategies (cost leadership and differentiation) to position themselves in the market.

Firms using a differentiation strategy compete on the basis of providing unique or different products . Firms that have a cost leadership strategy strive to have the lowest cost in the industry. It is difficult for a new venture to feature a cost leadership strategy because it requires economies of scale that take time to develop. The strategy that a firm chooses affects its business model. A cost leadership strategy requires a business model that is focused on efficiency, cost minimization and large volume. A differentiation strategy requires a business model focused on developing products and services that are unique. These firms try to create a brand loyalty.

Strategic resources A firm is not able to implement a strategy without resources. The resources a firm has affects its business model. For a new venture, its strategic resources may initially be limited to the competencies of its founders, the opportunity they have identified and the unique way they plan to serve their market. The most important resources a firm has are the core competencies and the strategic assets. Core competencies are capabilities that serve as a source of a firm` s competitive advantage over its rivals. Examples: Sony` s competence in miniaturization; Dell` s competence in supply chain management.

A firm` s core competencies are important in both the short and the long term. In the short term they allow a firm to differentiate itself from its competitors and create unique value. Example: Dell` s core competencies include supply chain management, efficient assembly and serving customers, so its business model of providing corporate customers computers that are price competitive, are technologically up to date and have access to after-sale support makes sense. If Dell suddenly starts assembling and selling musical instruments, it will not be a successful strategy because it is outside its core competencies.

In the long term, it is important to have core competencies to establish strong positions in complementary markets. Example: Dell has taken its core competencies in assembly and sale of PCs and has moved them into the market for computer servers and other electronic devices. Strategic assets include plant and equipment, location, brands, patents, customer data, a qualified staff, distinct partnerships. Firms try to combine core competencies and strategic assets to create a sustainable competitive advantage.

Partnership network New ventures do not have the resources to perform all the tasks required to make their businesses work, so they rely on partners to perform key roles. In most cases, a firm does not want to do everything itself because most tasks needed to build a product or deliver a service are not core to a company` s competitive advantage. Example: Dell differentiates itself from its competitors through its expertise in assembling computers but buys chips from Intel. Dell could manufacture its own chips, but it does not have a core competence in this area. Dell relies on UPS and Federal Express to deliver its products because it does not have a core competence in this area.

Firms ` most partnerships are with suppliers that provide parts or services. A supply chain is the network of all the companies that participate in the production of a product, from the acquisition of raw materials to the final sale. More and more, managers focus on supply chain management, which is the coordination of the flow of all information, money and materials that moves through a product` s supply chain. The more efficiently a firm can manage its supply chain, the more effectively its business model will perform. Along with its suppliers, firms partner with other firms to make their business model work. These partnerships are in the form of strategic alliances, joint ventures, networks, consortia, trade associations.

Example: A survey made by PriceWaterhouseCoopers found that more than half of America` s fast-growing companies have formed multiple partnerships to support their business models. These partnerships have resulted in more innovative products, more profit opportunities and high growth rates. Partnerships help firms focus on their core competencies, gain economies of scale, share risk and cost, gain access to foreign markets, speed to market, flexibility and neutralize competitors. There are risks involved in partnerships, particularly if a single partnership is a key component of a firm` s business model. Many partnerships failed because of poor planning or the difficulties to make cultures compatible, financial and organizational risks, risks of becoming dependent on a partner, loss of decision autonomy.

Customer interface The type of customer interaction depends on how a firm chooses to compete. Example: Amazon.com sells books only over the Internet, while Barnes & Noble sells both through its traditional bookstores and online. In the computer industry there are several customer interface models. Dell sells only online and over the phone, while Hewlett-Packard and IBM sell primarily through retail stores. The elements of a firm` s customer interface are: target market, fulfillment and support, pricing model. Target market isthe limited group of individuals or businesses that it tries to address.

The target market a firm selects affects everything it does (the strategic assets it acquires, the partnerships it makes, the promotional campaigns). Fulfillment and support describe the way a firm` s product or service goes to the market or how it reaches its customers. It also refers to the channels a firm uses and the level of customer support it provides. Firms differ along these dimensions. Example: Suppose that a new venture developed a new cell phone technology. The firm has several options regarding how to take its technology to the market, such as: • to license the technology to existing cell phone companies (such as Nokia, Ericsson) • to manufacture the cell phone itself and establish its own sales channels 

to partner with a cell phone company (such as Motorola) and sell through partnerships with the cell phone service providers. The choice a firm makes about fulfillment and service has a dramatic impact on the type of company that evolves and the business model it develops. Example: If the firm licenses its technology, it would build a business model that emphasizes research and development. If it decides to manufacture its own cell phones, it would need to establish core competencies in the areas of manufacturing and design and to form partnerships with cell phone retailers. The level of customer support a firm is willing to offer also impacts its business model. Some firms differentiate their products or services and provide extra value to their customers through high levels of service and support.

Customer service can include delivery and installation, financing arrangements, customer training, guarantees, repairs, convenient hours of operation, convenient parking, information through Web sites. Pricing structure Pricing models vary depending on a firm` s target market and its pricinf philosophy. Example: a). Some rental car companies charge a daily flat rate, while other charge so much per mile. b). Some consultants charge a flat fee for performing a service, while others charge on hourly rate. It is difficult for a new venture to differentiate themselves on price, which is a common strategy for larger firms with more economies of scale.

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LITIGATING IN UNCONVENTIONAL FORUMS Craig E. Proctor Shook, Hardy & Bacon L.L.P. British Institute of International and Comparative Law London June 7, 2007. Business Model. PREDICTABILITY: Budget Personnel Office locations. Unconventional Forums = Unpredictability?.

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EU AI Act: first regulation on artificial intelligence

The use of artificial intelligence in the EU will be regulated by the AI Act, the world’s first comprehensive AI law. Find out how it will protect you.

A man faces a computer generated figure with programming language in the background

As part of its digital strategy , the EU wants to regulate artificial intelligence (AI) to ensure better conditions for the development and use of this innovative technology. AI can create many benefits , such as better healthcare; safer and cleaner transport; more efficient manufacturing; and cheaper and more sustainable energy.

In April 2021, the European Commission proposed the first EU regulatory framework for AI. It says that AI systems that can be used in different applications are analysed and classified according to the risk they pose to users. The different risk levels will mean more or less regulation. Once approved, these will be the world’s first rules on AI.

Learn more about what artificial intelligence is and how it is used

What Parliament wants in AI legislation

Parliament’s priority is to make sure that AI systems used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly. AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes.

Parliament also wants to establish a technology-neutral, uniform definition for AI that could be applied to future AI systems.

Learn more about Parliament’s work on AI and its vision for AI’s future

AI Act: different rules for different risk levels

The new rules establish obligations for providers and users depending on the level of risk from artificial intelligence. While many AI systems pose minimal risk, they need to be assessed.

Unacceptable risk

Unacceptable risk AI systems are systems considered a threat to people and will be banned. They include:

  • Cognitive behavioural manipulation of people or specific vulnerable groups: for example voice-activated toys that encourage dangerous behaviour in children
  • Social scoring: classifying people based on behaviour, socio-economic status or personal characteristics
  • Biometric identification and categorisation of people
  • Real-time and remote biometric identification systems, such as facial recognition

Some exceptions may be allowed for law enforcement purposes. “Real-time” remote biometric identification systems will be allowed in a limited number of serious cases, while “post” remote biometric identification systems, where identification occurs after a significant delay, will be allowed to prosecute serious crimes and only after court approval.

AI systems that negatively affect safety or fundamental rights will be considered high risk and will be divided into two categories:

1) AI systems that are used in products falling under the EU’s product safety legislation . This includes toys, aviation, cars, medical devices and lifts.

2) AI systems falling into specific areas that will have to be registered in an EU database:

  • Management and operation of critical infrastructure
  • Education and vocational training
  • Employment, worker management and access to self-employment
  • Access to and enjoyment of essential private services and public services and benefits
  • Law enforcement
  • Migration, asylum and border control management
  • Assistance in legal interpretation and application of the law.

All high-risk AI systems will be assessed before being put on the market and also throughout their lifecycle.

General purpose and generative AI

Generative AI, like ChatGPT, would have to comply with transparency requirements:

  • Disclosing that the content was generated by AI
  • Designing the model to prevent it from generating illegal content
  • Publishing summaries of copyrighted data used for training

High-impact general-purpose AI models that might pose systemic risk, such as the more advanced AI model GPT-4, would have to undergo thorough evaluations and any serious incidents would have to be reported to the European Commission.

Limited risk

Limited risk AI systems should comply with minimal transparency requirements that would allow users to make informed decisions. After interacting with the applications, the user can then decide whether they want to continue using it. Users should be made aware when they are interacting with AI. This includes AI systems that generate or manipulate image, audio or video content, for example deepfakes.

On December 9 2023, Parliament reached a provisional agreement with the Council on the AI act . The agreed text will now have to be formally adopted by both Parliament and Council to become EU law. Before all MEPs have their say on the agreement, Parliament’s internal market and civil liberties committees will vote on it.

More on the EU’s digital measures

  • Cryptocurrency dangers and the benefits of EU legislation
  • Fighting cybercrime: new EU cybersecurity laws explained
  • Boosting data sharing in the EU: what are the benefits?
  • EU Digital Markets Act and Digital Services Act
  • Five ways the European Parliament wants to protect online gamers
  • Artificial Intelligence Act

Related articles

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Google Gemini: Everything you need to know about the new generative AI platform

develop the business model ppt

Google’s trying to make waves with Gemini, a flagship suite of generative AI models, apps and services. But while Gemini appears to be promising in a few aspects, it’s falling short in others — as our informal review revealed .

So what is Gemini? How can you use it? And how does it stack up to the competition?

To make it easier to keep up with the latest Gemini developments, we’ve put together this handy guide, which we’ll keep updated as new Gemini models and features are released.

What is Gemini?

Gemini is Google’s long-promised , next-gen GenAI model family, developed by Google’s AI research labs DeepMind and Google Research. It comes in three flavors:

  • Gemini Ultra , the flagship Gemini model.
  • Gemini Pro , a “lite” Gemini model.
  • Gemini Nano , a smaller “distilled” model that runs on mobile devices like the Pixel 8 Pro .

All Gemini models were trained to be “natively multimodal” — in other words, able to work with and use more than just words. They were pretrained and fine-tuned on a variety of audio, images and videos, a large set of codebases and text in different languages.

This sets Gemini apart from models such as Google’s own LaMDA , which was trained exclusively on text data. LaMDA can’t understand or generate anything other than text (e.g., essays, email drafts), but that isn’t the case with Gemini models.

What’s the difference between the Gemini apps and Gemini models?

Google's Bard

Image Credits: Google

Google, proving once again that it lacks a knack for branding, didn’t make it clear from the outset that Gemini is separate and distinct from the Gemini apps on the web and mobile (formerly Bard). The Gemini apps are simply an interface through which certain Gemini models can be accessed — think of it as a client for Google’s GenAI.

Incidentally, the Gemini apps and models are also totally independent from Imagen 2 , Google’s text-to-image model that’s available in some of the company’s dev tools and environments. Don’t worry — you’re not the only one confused by this.

What can Gemini do?

Because the Gemini models are multimodal, they can in theory perform a range of multimodal tasks, from transcribing speech to captioning images and videos to generating artwork. Few of these capabilities have reached the product stage yet (more on that later), but Google’s promising all of them — and more — at some point in the not-too-distant future.

Of course, it’s a bit hard to take the company at its word.

Google seriously underdelivered with the original Bard launch. And more recently it ruffled feathers with a video purporting to show Gemini’s capabilities that turned out to have been heavily doctored and was more or less aspirational.

Google’s best Gemini demo was faked

Still, assuming Google is being more or less truthful with its claims, here’s what the different tiers of Gemini will be able to do once they reach their full potential:

Gemini Ultra

Google says that Gemini Ultra — thanks to its multimodality — can be used to help with things like physics homework, solving problems step-by-step on a worksheet and pointing out possible mistakes in already filled-in answers.

Gemini Ultra can also be applied to tasks such as identifying scientific papers relevant to a particular problem, Google says — extracting information from those papers and “updating” a chart from one by generating the formulas necessary to re-create the chart with more recent data.

Gemini Ultra technically supports image generation, as alluded to earlier. But that capability hasn’t made its way into the productized version of the model yet — perhaps because the mechanism is more complex than how apps such as ChatGPT generate images. Rather than feed prompts to an image generator (like DALL-E 3 , in ChatGPT’s case), Gemini outputs images “natively,” without an intermediary step.

Gemini Ultra is available as an API through Vertex AI, Google’s fully managed AI developer platform, and AI Studio, Google’s web-based tool for app and platform developers. It also powers the Gemini apps — but not for free. Access to Gemini Ultra through what Google calls Gemini Advanced requires subscribing to the Google One AI Premium Plan, priced at $20 per month.

The AI Premium Plan also connects Gemini to your wider Google Workspace account — think emails in Gmail, documents in Docs, presentations in Sheets and Google Meet recordings. That’s useful for, say, summarizing emails or having Gemini capture notes during a video call.

Google says that Gemini Pro is an improvement over LaMDA in its reasoning, planning and understanding capabilities.

An independent study by Carnegie Mellon and BerriAI researchers found that Gemini Pro is indeed better than OpenAI’s GPT-3.5 at handling longer and more complex reasoning chains. But the study also found that, like all large language models, Gemini Pro particularly struggles with math problems involving several digits, and users have found plenty of examples of bad reasoning and mistakes.

Early impressions of Google’s Gemini aren’t great

Google’s promised improvements, though — and the first arrived in the form of Gemini 1.5 Pro .

Designed to be a drop-in replacement, Gemini 1.5 Pro (in preview at present) is improved in a number of areas compared with its predecessor, perhaps most significantly in the amount of data that it can process. Gemini 1.5 Pro can (in limited private preview) take in ~700,000 words, or ~30,000 lines of code — 35x the amount Gemini 1.0 Pro can handle. And — the model being multimodal — it’s not limited to text. Gemini 1.5 Pro can analyze up to 11 hours of audio or an hour of video in a variety of different languages, albeit slowly (e.g., searching for a scene in a one-hour video takes 30 seconds to a minute of processing).

Gemini Pro is also available via API in Vertex AI to accept text as input and generate text as output. An additional endpoint, Gemini Pro Vision, can process text and imagery — including photos and video — and output text along the lines of OpenAI’s GPT-4 with Vision model.

Gemini

Using Gemini Pro in Vertex AI. Image Credits: Gemini

Within Vertex AI, developers can customize Gemini Pro to specific contexts and use cases using a fine-tuning or “grounding” process. Gemini Pro can also be connected to external, third-party APIs to perform particular actions.

Google brings Gemini Pro to Vertex AI

In AI Studio, there’s workflows for creating structured chat prompts using Gemini Pro. Developers have access to both Gemini Pro and the Gemini Pro Vision endpoints, and they can adjust the model temperature to control the output’s creative range and provide examples to give tone and style instructions — and also tune the safety settings.

Gemini Nano

Gemini Nano is a much smaller version of the Gemini Pro and Ultra models, and it’s efficient enough to run directly on (some) phones instead of sending the task to a server somewhere. So far it powers two features on the Pixel 8 Pro: Summarize in Recorder and Smart Reply in Gboard.

The Recorder app, which lets users push a button to record and transcribe audio, includes a Gemini-powered summary of your recorded conversations, interviews, presentations and other snippets. Users get these summaries even if they don’t have a signal or Wi-Fi connection available — and in a nod to privacy, no data leaves their phone in the process.

Gemini Nano is also in Gboard, Google’s keyboard app, as a developer preview . There, it powers a feature called Smart Reply, which helps to suggest the next thing you’ll want to say when having a conversation in a messaging app. The feature initially only works with WhatsApp but will come to more apps in 2024, Google says.

Is Gemini better than OpenAI’s GPT-4?

Google has several times touted Gemini’s superiority on benchmarks, claiming that Gemini Ultra exceeds current state-of-the-art results on “30 of the 32 widely used academic benchmarks used in large language model research and development.” The company says that Gemini Pro, meanwhile, is more capable at tasks like summarizing content, brainstorming and writing than GPT-3.5.

But leaving aside the question of whether benchmarks really indicate a better model, the scores Google points to appear to be only marginally better than OpenAI’s corresponding models. And — as mentioned earlier — some early impressions haven’t been great, with users and academics pointing out that Gemini Pro tends to get basic facts wrong, struggles with translations and gives poor coding suggestions.

How much will Gemini cost?

Gemini Pro is free to use in the Gemini apps and, for now, AI Studio and Vertex AI.

Once Gemini Pro exits preview in Vertex, however, the model will cost $0.0025 per character while output will cost $0.00005 per character. Vertex customers pay per 1,000 characters (about 140 to 250 words) and, in the case of models like Gemini Pro Vision, per image ($0.0025).

Let’s assume a 500-word article contains 2,000 characters. Summarizing that article with Gemini Pro would cost $5. Meanwhile, generating an article of a similar length would cost $0.1.

Ultra pricing has yet to be announced.

Where can you try Gemini?

The easiest place to experience Gemini Pro is in the Gemini apps . Pro and Ultra are answering queries in a range of languages.

Gemini Pro and Ultra are also accessible in preview in Vertex AI via an API. The API is free to use “within limits” for the time being and supports certain regions, including Europe, as well as features like chat functionality and filtering.

With AI Studio, Google launches an easy-to-use tool for developing apps and chatbots based on its Gemini model

Elsewhere, Gemini Pro and Ultra can be found in AI Studio. Using the service, developers can iterate prompts and Gemini-based chatbots and then get API keys to use them in their apps — or export the code to a more fully featured IDE.

Duet AI for Developers , Google’s suite of AI-powered assistance tools for code completion and generation, is now using Gemini models. And Google’s brought Gemini models to its dev tools for Chrome and Firebase mobile dev platform.

Gemini Nano is on the Pixel 8 Pro — and will come to other devices in the future. Developers interested in incorporating the model into their Android apps can sign up  for a sneak peek.

Create any image you can dream up with Microsoft's AI image generator

Describe your ideas and then watch them transform into breathtaking images. whether it's social media visuals , business projects , or photos, image creator in microsoft designer can effortlessly handle any style or format. no downloads, fees, or complex software; just let your creativity flow.

Create custom images for free

Try out a few prompts

Prompt tile thumbnail

A kitchen in the farmhouse style with soup and spices on the countertop, warm light, shallow depth of field

Prompt tile thumbnail

A product photo of a juice bottle surrounded by paper waves, quilling style, pastel colors

Prompt tile thumbnail

A sleeping cat lying in the sunlight on a windowsill in mid-day, retro color palettes, shallow depth of field, blurred background

Prompt tile thumbnail

A female scientist with test tubes and a microscope in the background, constructivist poster style in blue, black and cream color palette with a minimal composition

Prompt tile thumbnail

Simple folk style illustration of a bluebird with red and yellow flowers

Prompt tile thumbnail

An abstract background of melting liquid with a metallic sheen, gold and grey colors, reflective studio light

Prompt tile thumbnail

A detail of a maple tree in the middle of a green field, blue sky, warm color palette, autochrome style, vintage

Prompt tile thumbnail

A castle made out of gumdrops and lollipops on a pink background, 3D hyper-surrealism, shiny, metallic, pastel colors

Why use Microsoft Designer's free AI image generator?

Designer makes creating your own images easy. Just write a description of the image you'd like and let AI do the rest! You'll get vivid, high-resolution images with stunning detail.

Lightbulb illustration

It's free

Gears illustration

It's fast

Layered image illustration

It's precise

Collection of images illustration

It's versatile

Turn words into high-quality images with help from ai.

Open Image Creator and sign in with your Microsoft account if prompted.

Describe the image you'd like to create and select Generate .

3 tips for getting the best AI images

Cursor hovering over a prompt and generated AI image

Tip #1: Detail your vision

Cursor hovering over a prompt and generated AI image

Tip #2: Consider composition

Cursor hovering over a prompt and generated AI image

Tip #3: Refine and experiment

Frequently asked questions, can i generate ai images for free, what projects are best for ai-generated images, what model does microsoft designer use to create images, how can i ensure my ai-generated images are on brand.

First, clearly define your brand's identity—colors, fonts, image style, key motifs, and overall mood and aesthetic—and incorporate those elements into your prompts. Consider creating a set of brand guidelines to consistently guide the AI's output. When you generate an image that fits your brand, note the prompt you used. Likewise, observe which prompts don't work and refine them accordingly. A spreadsheet can be a handy way to log successful prompts so you can recycle them in the future.

Related articles

Google making changes after Gemini AI portrayed people of color inaccurately

Google's neon signage inside NYC office.

Google said Thursday that it would temporarily limit the ability to create images of people with its artificial-intelligence tool Gemini after it produced illustrations with historical inaccuracies.

The pause was announced in a post on X after the company acknowledged the issues in a statement the day before, writing: “We’re working to improve these kinds of depictions immediately. Gemini’s AI image generation does generate a wide range of people. And that’s generally a good thing because people around the world use it. But it’s missing the mark here.”

Google announced its “next-generation” AI model, Gemini 1.5 , last week, touting it as its most capable yet. Google is one of many tech companies that are feverishly competing to develop the best generative AI systems that can create text, images and video from simple prompts.

After its launch, Gemini drew the attention of some pundits and technologists, including many on the right who have been critical of efforts to make AI more inclusive, with some leveling accusations that Google’s AI was a prime example of “ woke AI .”

The most widely noticed inaccuracies involved inserting people of color into places where they wouldn’t historically appear. For example, The Verge reported that asking Gemini to create an illustration of a 1943 German soldier resulted in AI-generated drawings of nonwhite people in Nazi uniforms. Gemini also created images of some nonwhite Founding Fathers and U.S. senators from the 1800s, when in reality they were all white men. 

Gemini’s racially diverse image output comes amid long-standing concerns around racial bias within AI models, especially a lack of representation for minorities and people of color. Such biases can directly harm people who rely on AI algorithms, such as in health care settings , where AI tools can affect health care outcomes for hundreds of millions of patients. 

Google isn’t the only Big Tech company addressing major issues with flagship AI tools this week — OpenAI, the company behind AI text generator ChatGPT, said Wednesday it had resolved an issue causing “unexpected responses” from ChatGPT. Users began noticing Tuesday that ChatGPT was malfunctioning, spitting out nonsensical sentences instead of its usual output.

“LLMs generate responses by randomly sampling words based in part on probabilities. Their ‘language’ consists of numbers that map to tokens,” OpenAI wrote in a status update on its website. “In this case, the bug was in the step where the model chooses these numbers. Akin to being lost in translation, the model chose slightly wrong numbers, which produced word sequences that made no sense.”

Kat Tenbarge is a tech and culture reporter for NBC News Digital. She can be reached at [email protected]

Google quietly launches internal AI model named 'Goose' to help employees write code faster, leaked documents show

  • Google has an internal large language model named Goose, designed to make employees more productive.
  • Goose is trained on "25 years of engineering expertise at Google."
  • The company is leveraging AI as part of a bigger efficiency push.

As Google injects artificial intelligence into every product it possibly can, it’s also turning to AI to make its business more efficient.

The company has launched a large language model named Goose that's just for employees. It is designed to assist with building new products, according to internal documents reviewed by Business Insider.

The documents describe Goose as a “descendant of Gemini,” its big new large language model . Goose is “trained on the sum total of 25 years of engineering expertise at Google,” one of the documents states.

“It can answer questions around Google-specific technologies, write code using internal tech stacks and supports novel capabilities such as editing code based on natural language prompts,” an internal summary of Goose reads.

Leveraging AI internally could be a key factor in Google’s new efficiency drive, which has resulted in leadership cutting thousands of jobs over the past 13 months and a number of team re-orgs. Google finance chief Ruth Porat hinted at initiatives like this during the company’s recent earnings call , telling analysts that Google was working to “slow expense growth” through a variety of tactics including “streamlining operations across Alphabet through the use of AI.” 

One internal document notes that Goose is part of a plan to “bring AI to every stage of the product development process.” 

A Google spokesperson didn't respond to a request for comment.

Goose appears to be available for at least some employees to use right now, however, it’s not clear if it’s fully functional in terms of its abilities. One document notes that Goose “is also planned to be the first general-purpose LLM approved for internal coding use at Google.”

“Goose has a 28k token context window, which makes it particularly valuable for development tasks,” it adds. Token context windows refer to the amount of text, numbers, and other information a language model can take into account when processing a query. That's especially important for coding, which can include hundreds of thousands of lines of code.

The documents note that the creation of Goose was a collaborative effort between Google Brain, DeepMind, and Google's internal infrastructure teams. The company merged Brain and DeepMind last year to build Gemini, which was in turn named after the twin teams that created it.

Duck, Duck, Goose

Google isn't the only tech company using its own AI models and products to boost productivity. Microsoft recently rolled out its Copilot tool to internal teams , Business Insider reported.

And Goose isn't the only example of Google using AI to be more efficient.

The company uses AI to try to reduce the amount of energy required to cool its data centers, for example. It is also increasingly pushing advertisers to use AI automated products for deciding where their money should be spent across Google's products.

For now at least, Google insists that AI is not taking away employees’ jobs.

“We’re not restructuring because AI is taking away any jobs,” said Google’s chief business officer Philipp Schindler, after Business Insider’s reported layoffs in Google’s ad sales team as part of a re-org .

Goose could become increasingly useful for employees. The tool was designed with a "focus on new engineering-related capabilities," one of the documents reads, suggesting it could go well beyond the existing development tools offered to staff.

And if Googlers have specific development questions while using Goose, they're encouraged to turn to the company's internal chatbot, named Duckie.

Are you a current or former Google employee? Got something to share??

You can reach reporter Hugh Langley via encrypted messaging app Signal (+1 628-228-1836) or email ( [email protected] )

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Watch: Google's DeepMind AI just taught itself to walk

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