Business Model Canvas / Value Proposition Canvas
Business Model Canvas and Value Proposition Canvas – complementary methods, which allow easily and visually convey current business models and the ones that have already been created. These methods also allow to understand existing and future value for the end consumer.
Benefits of the method:
- Visually attractive system, which allows to understand coralations easier;
- The participants are encouraged to understand the importance of each given element for success of a business;
- Methods are applyable to any market;
- Helps to understand the worth of the goals for the end consumer and creator of the model;
- The creative part of the process allows to create new, real and implamentable ideas.
Structure of the method:
Business Model Canvas (BMC) consists of 9 essential business or service funcional elements:
- Client segment – allows to choose the core audience;
- Value proposition – the real value differs from possible value;
- Channels – means of reaching the client;
- Customer relationship – feedback;
- Key activities – criteria showing activity;
- Resources – means of defining them;
- Key partners – organizations or people connected to the implementation of the idea;
- Cost – cost regarding resources and activity;
- Revenue – income based on activity and worth.
Value Propostion Canvas consists of 6 elements that allow to understand and feel the connection between the client and the business, service or product being created.
- Clients jobs/ needs ;
- What causes clients’ happiness;
- What causes clients’ sadness.
Service/ product provider:
- Main activity;
- Reasons making client happy;
- Reasons making client sad.
When modeling and changing different elements of BMC it can help to make some useful insights for saving money and making processes more effective.