The Nine Building Blocks

Your business model can best be described through nine basic building blocks that show the logic of how you intend to make money. The nine blocks cover the four main areas of your business: customers, offer, infrastructure, and financial viability. The business model is like a blueprint for a strategy to be implemented. Here are the nine blocks:

  1. Customer Segments – An organization serves one or several Customer Segments.
  2. Value Propositions – It seeks to solve customer problems and satisfy customer needs with value propositions.
  3. Channels – Value propositions are delivered to customers through communication, distribution, and sales Channels.
  4. Customer Relationships – Customer relationships are established and maintained with each Customer Segment.
  5. Revenue Streams – Revenue streams result from value propositions successfully offered to customers.
  6. Key Resources – Key resources are the assets required to offer and deliver the previously described elements…
  7. Key Activities – …by performing a number of Key Activities.
  8. Key Partnerships – Some activities are outsourced and some resources are acquired outside the enterprise.
  9. Cost Structure – The business model elements result in the cost structure.

Rethink – Tweak, Change, Innovate or Transform?  This shared language allows you to systematically challenge assumptions about your business model and to rethink and innovate successfully.

Some examples: a land development company transformed itself into a hotel management group (transformation); an office equipment supplier reinvented itself into a software-as-a-service company (innovation); a surgical instrument distributor increased revenue streams by re-pricing product lines (change); and a trucking sales/leasing firm grew sales by reorganizing its commercial market footprint (tweaking).

Is it time for your company to systematically challenge assumptions about your business model, rethink and innovate successfully?  Schedule a free 2-hour strategy session with me today!