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Business Model Canvas Explained

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Published on Jun 26, 2013

The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs.

The Business Model Canvas was initially proposed by Alexander Osterwalder (EHT Lausanne) based on his earlier work on Business Model Ontology. Since the release of Osterwalder's work in 2008, new canvas' for specific niche's have appeared like the SaaS Canvas.

The Business Model Canvas can be printed out on a large surface so groups of people can jointly start sketching and discussing business model elements with post-it note notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis.

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