What is the Canvas Model?

The Canvas model or known as the Business Model Canvas in English is a visual model to organize ideas when defining a business model. This model was developed by Alexander Osterwalder , and is ideal for determining and creating an innovative business model by defining four large areas focused on customers, supply, infrastructure, and economic viability.

The Canvas model allows you to have a clearer view of the project at a glance, because it is a simple model, easy to use and shows us two points of view, both internal and external. The ideal is to complete each of its sections in the correct order to have a complete view. If you want to know in depth how a Canvas model is created, you can read our article related to this topic.

What are the elements of the Canvas Model?

As we mentioned before, this model consists of several elements or blocks that will make clear, once the information is filled in, the characteristics of the company you want to create. Let's explore each of these elements, so that you can move forward with your Canvas model.

1. Market segments.

This block will allow us to know our client. Who is my client? To whom am I going to offer my product or service? It is very important to be able to structure all the other blocks, because if we do not know who we are going to address, we will not be able to do it in the best possible way.

2. Value proposition.

We must detail the needs we cover in the market, explaining our products or services and what differentiates us from the competition. It is precisely this difference that will make us a competitive advantage: which can be related to cost, product or transaction.

3. Channel.

The channel is the access to our product, where to buy it or the value proposition that accompanies it. We must take into account how to distribute it.

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4. Customer relationship

It is about evaluating how you are going to relate to your clients. You must keep in mind that the relationship you establish must be in accordance with the values of your brand. Find the best way to relate to them, whether it will be through a personalized and exclusive approach, or whether you will resort to automation.

5. Sources of income

It's time to define not only the cost of your product or service, but also to establish how much your customers are willing to pay. Remember that the profitability of your company depends on this, but you must also put yourself in the consumer's shoes.

6. Key activities

The key activities are production, problem solving, and the platform you need. You must establish your value proposition, outlining all the activities necessary to achieve it.

7. Necessary resources

The business will need a series of physical and material resources to operate, which is why you must provide what you need to carry out your proposal.

8. Partners

Define your strategic alliances to develop the business model, your partners, suppliers and everyone who will be involved in the project to make it viable.

9. Cost structure

Creating a cost structure will allow you to evaluate key activities and resources. Keep in mind pricing options at different times and circumstances so that costs may need to be adjusted.

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What is the Canvas Model used for?

This visual model for evaluating business strategies is perfect for the following points:

✔ Define the distribution channels for your products or services. You will have a clear vision of how to deliver your products or services, being able to identify your competitive advantages, your potential and innovation.

✔ Clear vision of your business. You will have a way to clearly show your business vision to your entire team and collaborators in a very intuitive and visual way.

✔ 360-degree approach to your business. You will be able to have an overview taking into account resources, your clients, thinking about the market, distribution, logistics, costs, etc.

✔ Reduce the chances of failure. This procedure is simple but the execution steps required to successfully bring your idea to market are comprehensive.

Work with a secure methodology used by both startups and large companies.

One of the main benefits of the Canvas model is that it is highly visual, low cost and collaborative. It provides a language that is easy to describe and visualize, as well as being adaptable for various business models in a single framework.

The Canvas model is a purely qualitative instrument, so it is necessary to complement it with other quantitative models to obtain the management of data and numbers, as well as accounting, financial, marketing tools, etc.

Nowadays, there are many companies that are already incorporating this tool with the aim of achieving better organizational development. A simple example of this could be how a veterinary clinic applies the development of the Canvas model for this company that sells both products and services.

Without a doubt, once you have each of the elements of the Canvas model mentioned above ready, it will help you to plan the elements of the business. Many companies around the world have implemented this model to achieve success. The truth is that it is not only useful for companies that are starting out, it is also advisable to make a plan once a year to evaluate the current plan, practices, strategies and results.