For many years the term business model was used without a consensus in its definition. Many authors mentioned it without explaining exactly what they were talking about. And it was precisely thinking about it that the Swiss consultant Alexander Osterwalder began to develop his doctoral thesis that would give rise to the Business Model Canvas.
The Cost Structure is the last – but not least – component of a Business Model. It gathers the most important costs involved in the whole operation from the outset. This is the final block, precisely because we need to have all the previous components already defined so we can estimate the costs of each […]
The penultimate component – Key Partners – deals with the network of partners that put the Business Model into operation. A partnership is when two business entities form a kind of relationship.
If the immediately preceding component of the Business Model Canvas is the Key Resources, which provide the most important inputs to bring your business to life, the Key Activities include the actions that are imperative for a business to work.
In the Business Model Canvas, the Revenue Streams component encompasses the money that the company generates with each previously defined Customer Segment. But that does not mean the “profit” earned, but the revenue flow involved.