CANVAS 13 - Great guide on the business model, from the product manager's point of view
A look at the business model from the product manager's point of view
You are here ➔ CANVAS 13 - Great guide on the business model, from the product manager's point of view
1 – Customer Problem
2 – Customer Segments
3 – Value Propositions
Value Proposition Formulation Map
4 – Customer Relationships
5 – Channels
6 – Revenue Streams
7 – Key Activities
8 – Key Resources
9 – Key Partners
10 – Cost Structure
11 – Eco-Social Costs
12 – Eco-Social Benefits
13 – KPI (Key Performance Indicators)
- What customer problems are we trying to solve with our business model?
- What needs are we addressing?
- For whom are we creating value?
- Who are our most important customers?
Value Proposition Formulation Map
- What value do we offer to the customer?
- Which of our customers' problems are we helping to solve?
- What bundles of products and services are we offering to each customer segment?
- What customer needs are we satisfying?
- What type of relationship do our customer segments expect us to establish and maintain with them?
- How do they integrate with the rest of our business model?
- How much do they cost?
- Examples: Personal assistance, Self-service, Automated services, Communities, Co-creation.
- Through which channels do our customer segments want to be reached?
- How are we reaching them now?
- How are our channels integrated?
- Which ones are the best?
- Which ones are most cost-efficient?
- How are we integrating them with customer routines?
- For what value are our customers really willing to pay?
- For what are they currently paying?
- How would they prefer to pay?
- How much does each revenue stream contribute to overall revenue?
- What key activities do our value propositions require?
- Our distribution channels?
- Customer relationships?
- Revenue streams?
- What key resources do our value propositions require?
- Our distribution channels?
- Customer relationships?
- Revenue streams?
- Who are our key partners?
- Who are our key suppliers?
- What key resources are we acquiring from partners?
- What key activities do partners perform?
- Motivation for partnerships: Acquisition of resources and activities.
- What are the most important costs inherent in our business model?
- Which key resources are the most expensive?
- Which key activities are the most expensive?
- What ecological or social costs is our business model causing?
- Which key resources are not renewable?
- Which key activities use a lot of resources?
- What ecological or social benefits is our business model generating?
- What are the beneficial aspects for potential customers?
- How is the value proposition a benefit for the individual?
13 – KPI (Key Performance Indicators)
- How do we measure the success and efficiency of our business model?
- What metrics are used to evaluate performance in key areas such as financial health, customer satisfaction, and environmental impact?
What is the CANVAS model?
The CANVAS business model was developed by Alexander Osterwalder to solve specific problems or for specific business segments. It is a thinking tool that can be modified and adapted to our needs. To effectively use these tools, it is important to understand their purpose and capacity to bring benefits to the work. However, before changing the rules, you need to study them.
There are many approaches to CANVAS and many adapt it to their purposes. There are also different "readings" of the model in terms of its content and the order of prioritization in which each of its elements is considered. The original model contains 9 fields. I will consider the model of 13 fields from the perspective of the product manager, not the entrepreneur. But still taking into account the entrepreneur's point of view.
3 key reasons to use CANVAS
The key aspect is communication. Standardized tools are ideal for communication with stakeholders, the team, and partners. They create a universal knowledge system, so when someone mentions the elements of the business model, everyone understands how it relates to the business and explanations are not needed every time.
The second aspect is a tool to visualize, analyze, and develop the company's business model. It is a scheme that shows how the company creates, distributes, and captures value.
The third important and useful aspect is the analysis of your company and competitors. This will help identify the resilience of your model and find out what you can borrow from competitors. This analysis is useful for decision-making as it allows you to see the big picture and identify weak points.
CANVAS can be divided into two parts: external and internal. The analysis of the external part is quite simple: you put yourself in the place of the consumer segment, look at the business from this point of view, and ask yourself questions about the business’ value proposition, how you learned about it, how you received the product, what relationships were established with you and why you ultimately paid.
The analysis of the internal part is even easier: you, as an entrepreneur or product manager, can easily list all the key points and actions you take.
CANVAS 13
My version of CANVAS consists of 13 key elements that together form a complete picture of the business: customer needs or pains, value proposition, customer segments, channels, customer relationships, key activities, key resources, key partners, cost structure, revenue streams, two aspects of ecological advantage and costs, and KPIs.
CANVAS is not the main document of the company or product; it is a tool to collect and link all ideas. It is a tool to seek and form your business model that you will map out, but understandable to everyone.
CANVAS for the product manager
You can develop several business models to finally choose the one you trust the most and test your hypotheses on it. To test hypotheses in the context of the business model, you can conduct research interviews, make the first sale, go to potential users or companies and ask them about the problem, as well as get their opinion on a possible solution and evaluate the overhead expenses the company will incur.
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