One quick question, that comes to everyone’s mind is that why do i need to understand the fundamentals of Business model canvas? It is a very common misconception that a Business model canvas is used only to visualize new business models. You need to know this only if you are going to have your own start up.
In reality a business model canvas allows you to visualize a new or existing business models, how your organization is creating, delivering, and capturing value. If it is a existing business, business model canvas is based on a series of facts. Operating divisions execute the known business model. Inside existing companies and divisions, the business model canvas is used as a tool to implement and continuously improve existing business models incrementally. This might include new products, markets or acquisitions.
Use a Business Model Canvas :
- If you are joining a new company, you use this to understand the business model of the new company.
- If you are working with a customer, you can do use this to understand your customers better.
- If you are talking to a new prospect you can use the canvas to have a better understanding of your new prospect, so that you can engage in a better conversation.
If you are working with a services organization, it is very important to understand this in detail, so that you will be able to help your company sustain and farm their existing relationships.