What is the purpose of the Business Model Canvas: It is a business model describes the rationale of how an organization creates, delivers, and captures value.
As a CFO or FP&A you will be required to act as a strategic business advisor, and to help your organization to develop new business models or improve existing ones. It includes 9 building blocks, which are:
1. Key Partners
List the partners who helps you optimize your operations, reduce your risks, and get a competitive advantage.
2. Key Activities
List the most important activities required to implement the company’s value proposition.
3. Key Resources
List the resources that are necessary to create value for your customers. These resources could be human, financial, physical, and intellectual.
4. Value Propositions
List the products and services you offer to meet the needs of your customers. It includes also your unique selling proposition that will distinguish you from your competitors.
5. Customer Relationships
Identify the type of relationship you want to create with your customer segments. How will you interact with them?
6. Channels
List the different channels you will be using to deliver your value proposition to your targeted customers. The organization can reach its clients through its own channels, through partner’s channels, or through a combination of both.
7. Customer Segments
Identify which customers you try to serve (e.g. age, gender, location, interests, habits, etc.).
8. Cost Structure
Estimate the key cost drivers, and how much you are planning to spend on Product development, Marketing, Sales, Website design, etc.
9. Revenue Stream
Estimate the key revenue drivers, and how much you are planning to earn from your different sources of revenue.