Business Model Canvas and Rubric BMC
Business Model Canvas and Rubric BMC
Osterwalder, A., & Pigneur, Y. (2013). Business Model Generation: A Handbook for Visionaries,
Game Changers, and Challengers. Wiley & Sons.
A business model describes the rationale of how an organization creates, delivers, and
captures value.
Customer Segments
The Customer Segments Building Block defines the different groups of people or
organizations an enterprise aims to reach and serve. Without (profitable) customers, no
company can survive for long.
• For whom are we creating value?
• Who are our most important customers?
Value Proposition
The Value Propositions Building Block describes the bundle of products and services that
create value for a specific Customer Segment. The Value Proposition is the reason why
customers turn to one company over another. It solves a customer problem or satisfies a
customer need.
• What value do we deliver to the customer?
• Which one of our customer’s problems are we helping to solve?
• Which customer needs are we satisfying?
• What bundles of products and services are we offering to each Customer Segment?
• Who are our competitors?
• What are our Strengths, Weaknesses, Opportunities, and Threats (SWOT)?
Channels
The Channels Building Block describes how a company communicates with and reaches its
Customer Segments to deliver a Value Proposition.
• Through which Channels do our Customer Segments want to be reached?
• How are we reaching them now?
• How are our Channels integrated?
• Which ones work best?
• Which ones are most cost-efficient?
• How are we integrating them with customer routines?
Customer Relationship
The Customer Relationships Building Block describes the types of relationships a company
establishes with specific Customer Segments. Customer relationships may be driven by
customer acquisition, customer retention, boosting sales (upselling).
• What type of relationship does each of our Customer Segments expect us to establish
and maintain with them?
• Which ones have we established?
• How costly are they?
• How are they integrated with the rest of our business model?
Revenue Streams
The Revenue Streams Building Block represents the cash a company generates from each
Customer Segment (costs must be subtracted from revenues to create earnings). A business
model can involve two different types of Revenue Streams which are, transaction revenues
resulting from one-time customer payments and recurring revenues resulting from ongoing
payments to either deliver a Value Proposition to customers or provide post-purchase
customer support.
• For what value are our customers really willing to pay?
• For what do they currently pay?
• How are they currently paying?
• How would they prefer to pay?
• How much does each Revenue Stream contribute to overall revenues?
Key Resources
The Key Resources Building Block describes the most important assets required to allow an
enterprise to create and offer a Value Proposition, reach markets, maintain relationships with
Customer Segments, and earn revenues. Key resources can be physical, financial, intellectual,
or human. Key resources can be owned or leased by the company or acquired from key
partners.
• What Key Resources do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?
Key Activities
The Key Activities Building Block describes the most important things a company must take
to operate successfully.
• What Key Activities do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue streams?
Key Partnership
The Key Partnerships Building Block describes the network of suppliers and partners that
make the business model work. Companies create alliances to optimize their business models,
reduce risk, or acquire resources.
• Who are our Key Partners?
• Who are our key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
Cost Structure
The Cost Structure describes all costs incurred to operate a business model. Creating and
delivering value, maintaining Customer Relationships, and generating revenue all incur costs.
Such costs can be calculated relatively easily after defining Key Resources, Key Activities, and
Key Partnerships.
• What are the most important costs inherent in our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• How to get funded?
Business Model Canvas Rubric