A business model describes the rationale of how an organisation creates, delivers, and captures value. We believe a business model can best be described through nine basic building blocks that indicates 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 financial viability. The business model is like a blueprint for a strategy to be implemented through organisational structures, processes, and systems. Here is the nine blocks:
Customer Segments
An organisation serves one or several customer segments
Value Propositions
It seeks to solve customer problems and satisfy customer needs with value propositions.
Channels
Value propositions are delivered to customers through communication, distribution, and sales channels.
Customer Relationships
Customer relationships are established and maintained with each customer segment.
Revenue Streams
Revenue streams result from value propositions successfully offered to customers.
Key Resources
Key resources are the assets required to offer and deliver the previously described.
Key Partnerships
Some activities are outsourced and some resources are acquired outside the enterprise.
The AHi can help you design your own unique business model with the view of making money through delivering a demanding value proposition.
