Business Model Canvas : A Coherent Framework

760 Words Oct 3rd, 2015 4 Pages
The Business Model Canvas is a coherent framework that comprises holistic perspectives, elements, relationships and logical expression of a specific entrepreneur in generating, delivering and capturing values (Osterwalder, Pigneur & Tucci 2005). Through this business model, business can assess and bring innovation to their business concept.
According to Osterwalder (2004), the Canvas contains nine relevance building blocks include value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key partners, key activities and cost structure from the creation of the product and service. Those nine categories can be classified into four main groups consist of product (value propositions), customer interface (customer segments, channels, and customer relationships), infrastructure management (key resources, key activities, and key partnership), and financial aspects (cost structure and revenue streams).
The Value Propositions building block refers to the overall view of company’s products and services that create value to satisfy the demand for a specific customer segments (Osterwalder, Pigneur & Ferreira 2011). Osterwalder indicated that these offering needs to be unique and distinguished from competitors (Osterwalder, Pigneur & Ferreira 2011). The value may be divided into the quantitative category that emphasis on the price and productivity, and qualitative category, which highlights product’s experience and its usage (Martin 2015).…
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