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Nine basic building blocks define an organization's business model: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. To effectively understand and design a business model, use the business model canvas tool to map, discuss, and invent new models. Customer segments represent all those for whom value is created, with each segment having a specific value proposition. Channels, customer relationships, and revenue streams are critical components, along with key resources, key activities, key partners, and cost structure.