A manager should be aware of the business model of her company. She should understand it and realize its importance. The business model of a company decides how the revenue of the company is generated, how it makes profit and how it functions. The manager should make sure that the business model of the organization is as per the market condition or else it will fail. Understanding business model is a significant way to develop awareness in commercial field. This understanding will also help in making useful decisions, solving issues and becoming a trusted manager. In this article, we will discuss about the strategy tools in a useful model and consider it as a business model.
The idea of Business Model Canvas was pioneered by Yves Pigneur and Alex Osterwald in 2010. The idea of the Business Model Canvas is based on Osterwalder’s book ‘Business Model Ontology.’ Creation of the Canvas was a collaborative effort from four hundred and seventy members of the Business Model Innovation Hub, who contributed critical comments to their own research and case studies. The organization is a virtual forum for researchers and business professionals.
The Business Model Canvas is a reflection of the total experience of people in a business community. The Model looks like a template formed of nine building blocks. It is a blueprint on which business models can be designed and explained. Business models can also be challenged based on the blueprint.