What is a Business Model?

By | May 30, 2014
This entry is part 17 of 31 in the series Defining words

The standard definition for “business model” is an articulation of how an organization creates, delivers and captures value.

Business Model Generation breaks a business model down into 9 building blocks:

  1. Customer Segments
  2. Value Propositions
  3. Channels
  4. Customer Relationships
  5. Revenue Streams
  6. Key Resources
  7. Key Activities
  8. Key Partnerships
  9. Cost Structure.

They organize it all into a “business model canvas” and provide useful and entertaining artwork (see below).

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