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The business model of an organization consists of nine basic building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. It is essential to map out these building blocks on a canvas known as the business model canvas. Customer segments are the people or organizations for which value is created, with specific value propositions for each segment. Channels are used to reach customers, while customer relationships are established. Revenue streams are generated, key resources and activities create value, and key partners are involved. The cost structure of the business model is also important. The business model canvas helps to map, discuss, design, and invent new business models.
