Nine Building Blocks of Business Models

In Alexander Osterwalder’s business model generation canvas every organization’s business model can be described using 9 building blocks:

Customer Segments

This are all the people and organizations for which you are creating value. This includes simple users and paying customers.

Value Proposition

This are products and services that create value for each of your customer segments.


Channels describe through which touch points you are interacting with your customers and delivering value.

Customer Relationships

Customer Relationships outline the type of relationship you establish with your customers.

Revenue Streams

The Revenue Streams make clear how and through which pricing mechanisms your business model is capturing value.

Key Resources

Key Resources describe the infrastructure through which you create, deliver, and capture value. The Key Resources show which assets are in dispense of your business model.

Key Activities

Key Activities show which things you really need to perform well in order to succeed with your business model.

Key Partnerships

Key Partnerships describe which partners could leverage your business model, since you won’t own all of your Key Resources and you won’t perform all of your Key Activities by yourself.

Cost Structure

Having knowledge of your business model infrastructure helps you in describing your Cost Structure.

On YouTube you find the following video titled: ” Alexander Osterwalder: The Business Model Canvas” which shows you the building blocks:

(via Business Models and Technology Entrepreneurship – Part 1)