Business Model Generation Canvas

What it is

A tool for fleshing out new business ideas in systemic detail—usually a new product or service offering but occasionally for an entire business (especially if a startup).

When to use

For entrepreneurial efforts in any setting—i.e., either large or small businesses or nonprofits—usually a new service or product offering to customers, which are usually external but could be internal (e.g., rolling out a major new technology capability within a large organization).

When not to use

When trying to analyze a complex, multi-line business as a whole; for minor extensions of already mature market offerings; or for laying out new business ideas that don’t require this level of detail (e.g., when the cost structure is simple, there are no significant partners, and channels to market few and obvious). 

Tradecraft tips

A neat feature of the canvas is that it is very scalable to context. In other words, you can use it for “blue sky” ideation of new business possibilities or to stress-test the robustness of an existing market offering in detail—or anywhere in between. The beauty of the canvas is that it forces systemic thinking about all aspects of a market offering at the level of resolution appropriate to stage of development. 

Source

The book Business Model Generation (2010) by Alex Osterwalder and Yves Pigneur started as a self-published volume with glue binding and went on to become a major best-seller for Wiley. You can download and print copies of the canvas here.

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