As explained earlier, business modelling is a collection of related activities or sub-processes and is constructed in multiple layers. There are numerous tools that can help support the business modelling process at each stage and we will explore these in more detail in later modules. But one of the most valuable tools – and the starting point for most business modelling – is the Business Model Canvas.
Source: Strategyzer (n.d.).
Developed by A. Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, the business model canvas is one of the most used frameworks for describing the elements of business models. Formal descriptions of the business become the building blocks for its activities.
Many different business conceptualizations exist; Osterwalder’s work and thesis propose a single reference model based on the similarities of a wide range of business model conceptualizations. With his business model design template, an enterprise can easily describe its business model.
Find out more about the Canvas in this video: