In this article, I will highlight both the Business Model Canvas, and provide examples of how it works and how to create a BMC for your business.

The Business Model Canvas approach really helped me think about my customer base, customer experience, and the competitive advantage I could create to compete in the market. It also helped me create some key metrics to track that I had not thought about until I started completing these different components. For example, as I worked through completing the Canvas, it helped me understand the next steps I needed to take to round out the BMC. Depending where your organization is in its maturity may impact which canvas tool you use.Įarlier this year, I used a Business Model Canvas to launch a new product. While the layout of the Business Model Canvas and Lean Canvas are the same, several of the components inside the canvases are different.

Instead of the traditional structure of a business plan, which can span hundreds of pages, now you can look at one single page diagram and understand how a business operates. And this one-page document in a visual model are certainly a lot easier to read and understand than a long document or presentation deck. Visual diagrams like these help simplify complex business processes that all have the same goal: to deliver value to customers in the most effective, strategic way possible. Summary: The Business Model Canvas (BMC) is a visual tool for showing how an organization creates and delivers value to its customers, including descriptions of the key suppliers, activities, how it makes revenue, and the cost structures to deliver that value.įrom a business process improvement perspective, I think of the Business Model Canvas being very similar to the SIPOC Diagram we use in Six Sigma.

Key processes business model examples