Business model frameworks help identify opportunities and problems for new ventures by forcing consideration of key components like customers, value propositions, channels, and costs. They provide a shared language to describe initiatives and test assumptions, allowing refinement of strategies. Frameworks also facilitate collaboration across functions to pursue disruptive opportunities and solve customer problems. The Business Model Canvas and Lean Canvas are two popular single-page tools that visualize and analyze business models.

1. Business Model Frameworks
Tools of Converting Insights into
Enterprise.

2. Converting insights into Enterprise
• Business model is set of assumptions an entrepreneur or a business
makes about :
• A need or Market that may exist
• Capability to convert need into solution
• Ability to generate customer desirability for the solution
• Converting desirability into cash & profits
• Optimizing cost by Leveraging technology
• Vehicle for sustaining innovation.
• Business model is a story of how an enterprise works , it carries
characters , motivation , highs & lows and the plot as to how it will
change the world.
• Business models assumptions are tested in the market continually and
improved so as to create best value for all stakeholders.
• Barometer of success of any business model is profits it generates or
mission it fulfills or both.
• Two of the best tools to describe, visualize and analyze business models
in single page are Business Model canvas by Alexander
Osterwalder and lean Canvas by Ash Murya .

3. Business Model Canvas

4. Business Model CanvasNine Building Blocks
KEY
PARTNERS
KEY ACTIVITIES
KEY RESOURSES
VALUE
PROPOSITION
CUSTOMER
RELATIONSHIP
CHANNELS
CUSTOMER
SEGMENTS
COST STRUCTURE REVENUE STREAMS
Different group
of people or
organization
enterprise
wants to serve
and call
“Customers”
Bundle of
Products &
Services that
satisfies needs
of Customer
segments
Communication
& Delivery of
Value proposition
to customer
Segment
Depth of
Relationship
Expectation
from customers
Revenue Streams & Pricing
Mechanisms
Physical ,
Financial,
Intellectual or
Human
Resources
required to make
the model work
Important things
that must be
done to create &
deliver Value
Proposition.
Network of
Partners,
suppliers and
Vendor that
make the
model work.
Cost Incurred to make the
model work.

5. KEY PARTNERS KEY ACTIVITIES
Can your solution
address
customers
problem
correctly?
Doubt it, do
usability testing ,
user experience
test.
KEY RESOURSES
What operational, customer & financial
metrics to track to gauge the progress?
Have you identified lag and lead measures
for each of the critical business elements?
Frequency of validity check of metrics?
VALUE PROPOSITION
How your product or
solution can alleviate
pain , create gains or
produce customer
outcomes in an
distinguishable and
clear way? In doubt,
map values offered ,
check product market
fit.
CUSTOMER
RELATIONSHIP
What is the
“Force Multiplier”
that will make
your efforts have
greater impact in
your intended
market.
CHANNELS
How will your customers reach you
to buy your solution? Channels you
would deploy to deliver product or
solution to target customer?
Traffic analytics , conversion rate.
Do you know target
market for your
solution?
Have you worked out
a communication
strategy for them?
In doubt , use
customer personas.
COST STRUCTURE
Have you identified all fixed and variable cost for
running the business?
To what extend fixed cost get covered by product
pricing? Plan to for complete coverage?
REVENUE STREAMS
Where will the money come from?
What will be the pricing model. one time
,subscription model or any other hybrid
model?
Have you
identified real
problems for
which people
are looking for
solution?
If in doubts ,
perform user
research ,
empathy map &
test your
hypothesis .
CUSTOMER SEGMENT
Business Model CanvasQuestions to evaluate New Business opportunity

6. Lean Canvas

7. The Lean CanvasOne Page Business Plan
Product Market
PROBLEM
Top 3
Problems or
Outcomes
SOLUTION
Possible
solutions to
each problem
KEY METRICS
Key numbers that
indicate health of
business
UNIQUE VALUE
PROPOSITION
Clear, compelling
message of
benefits &
experience which
would convert a
visitor into
customer
UNFAIR
ADVANTAGE
Something that
only you can do
& cant be
copied in easily
CHANNELS
Path to
customer,
access
points
CUSTOMER
SEGMENT
Target
Customer list &
users
Characteristics
of ideal
customer
Extreme users
COST STRUCTURE
List Fixed & Variable Cost
REVENUE STREAMS
Sources of Revenue , Revenue Model
Existing
alternatives
How these
problems are
solved
today?

8. Product Market
PROBLEM SOLUTION
Can your solution
address
customers
problem
correctly?
Doubt it, do
usability testing ,
user experience
test.
KEY METRICS
What operational, customer & financial
metrics to track to gauge the progress?
Have you identified lag and lead measures
for each of the critical business elements?
Frequency of validity check of metrics?
UNIQUE VALUE
PROPOSITION
How your product or
solution can alleviate
pain , create gains or
produce customer
outcomes in an
distinguishable and
clear way? In doubt,
map values offered ,
check product market
fit.
UNFAIR
ADVANTAGE
What is the
“Force Multiplier”
that will make
your efforts have
greater impact in
your intended
market.
CHANNELS
How will your customers reach you
to buy your solution? Channels you
would deploy to deliver product or
solution to target customer?
Traffic analytics , conversion rate.
Do you know target
market for your
solution?
Have you worked out
a communication
strategy for them?
In doubt , use
customer personas.
COST STRUCTURE
Have you identified all fixed and variable cost for
running the business?
To what extend fixed cost get covered by product
pricing? Plan to for complete coverage?
REVENUE STREAMS
Where will the money come from?
What will be the pricing model. one time
,subscription model or any other hybrid
model?
Have you
identified real
problems for
which people
are looking for
solution?
If in doubts ,
perform user
research ,
empathy map &
test your
hypothesis .
CUSTOMER SEGMENT
The Lean CanvasQuestions to evaluate New Business opportunity

9. “Markets that don’t exist don’t care
how smart you are” Mark Andreesen
• Business Model frameworks are designed to identify & analyze
opportunities & problems inherent in any new venture and to provoke
creative thinking around the issues.
• Business Model frameworks force you to think strategically about the
most important components of business quickly and in the process
discovering innovative answers to the most important question “Why
wont this work?”.
• Framework can become a shared language that allows you to easily
describe new strategic initiatives , its uncertainties, risks & challenge
assumption in meetings or workshops.
• It may helps you to rigorously examine & test critical hypothesis in the
model. Results of which –qualitative or qualitative – data could help you
alter & fine tune the strategy.
• Above all Business Model framework may act as a tool for collaboration
wherein different functions of the organization come together to take
advantage of disruptive new business opportunities and solve critical
customer problems.