Business Model Generation Notes 1 - Nine building blocks

A business model can best be described through nine basic building blocks that show the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure and finance viability. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems.

1. Customer Segments (CS): an organization serves one or more customers segments.

2. Value Propositions (VP): It seeks to solve customer problems and satisfy customer needs with value propositions.

3. Channels (CH): VP are delivered to customers through communication, distribution, and sales channels.

4. Customer Relationships (CR): CR are established and maintained with each CS.

5. Revenue Streams (RS): RS result from VP successfully offered to customers.

6. Key Resources (KR): KR are the assets required to offer and deliver the previously described elements.

7. Key Activities (KA): ... by performing a number of KA.

8. Key Partnerships (KP): Some activities are outsourced and some resources are acquired outside the enterprise.

9. Cost Structure (CS): The business model elements result in the cost structure.