Business Model Canvas

Business Model Canvas

Primary Category: Strategy & Business Design Governance

Secondary Focus: Value Creation, Business Model Validation, and Innovation Planning

Artifact Profile

Business Model Canvas: Design and Validate Business Logic is a strategic design artifact for articulating how an organization creates, delivers, and captures value. It provides a clear, shared structure for examining business logic across customers, offerings, channels, resources, partners, and cost and revenue dynamics.

Using your customer segments, value propositions, channels, revenue assumptions, resources, activities, partnerships, and cost structure, the artifact produces a coherent model of how the business is intended to work. Rather than treating strategy, operations, and finance as separate conversations, it aligns them into a single, testable view of value creation.

This artifact is built for executives, founders, strategy leaders, and innovation teams who must design, evaluate, or pivot business models. It supports clarity, alignment, and disciplined decision-making before committing resources or scaling execution.

Three Key Questions This Artifact Helps You Answer

• Does our business model logically create, deliver, and capture value?

• Where are our assumptions about customers, revenue, costs, or operations most fragile?

• What changes are required to make the model coherent, viable, and scalable?

What This Framework Supports

This artifact supports organizations seeking:

• Clear articulation of how the organization creates, delivers, and captures value

• Alignment of strategy, operations, and financial logic into a single, testable model

• Explicit identification of assumptions underlying customers, revenue, costs, and operations

• Early detection of gaps, misalignment, and structural risk before scaling or investment

How It Is Used

The artifact provides a structured business design governance framework that guides executives, founders, strategy leaders, and innovation teams through:

• Mapping customer segments, value propositions, channels, revenue, resources, activities, partnerships, and cost structure

• Evaluating whether the model logically creates, delivers, and captures value

• Stress-testing assumptions and dependencies embedded in the business logic

• Producing a coherent, defensible foundation for financial modeling, governance, and execution planning

This enables organizations to treat business model design as a governed decision process, ensuring clarity, alignment, and disciplined evaluation before committing resources or scaling execution.

What This Produces

• Structured view of how value is created, delivered, and captured

• Explicit articulation of key assumptions and dependencies

• Identification of gaps, misalignments, and strategic risks

• Clear foundation for financial modeling, governance, and execution planning

Common Use Cases

• Designing a new business, product, or service model

• Evaluating or pivoting an existing business model

• Aligning teams around customers, value propositions, and revenue logic

• Stress-testing assumptions before investment or scaling

• Framing business logic for governance, planning, or stakeholder review

How This Artifact Is Different

Unlike ad hoc strategy discussions or isolated financial models, this artifact treats business design as a governed decision structure. It integrates customer value, operational logic, and economic viability into a single, coherent framework that can be tested, challenged, and refined.

Related Framework Areas

This artifact is commonly used alongside other SolveBoard frameworks focused on:

• Business case development, investment governance, and portfolio management

• Assumption testing, risk analysis, and strategic forecasting

• Innovation management, product strategy, and market entry planning

• Performance governance, KPI alignment, and executive decision support

Related Terms

Business model canvas, value proposition, revenue model, cost structure, strategic design, innovation framework, startup strategy, business planning, value creation.

Framework Classification

This artifact is part of the SolveBoard library of structured decision and governance frameworks. It is designed as a repeatable business design and validation governance framework rather than a brainstorming canvas or static planning tool.

Business Model Canvas: Design and Validate Business Logic

Structuring how an organization creates, delivers, and captures value across nine integrated components

Definition

The Business Model Canvas is a strategic framework that describes how an organization creates, delivers, and captures value through nine building blocks: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. Within SolveBoard, the Business Model Canvas is used as a decision-framing tool to test business logic, surface assumptions, and align strategy, operations, and governance around a coherent value creation model.

When to Use

• When designing a new business, product, or service

• When evaluating or pivoting an existing business model

• When aligning cross-functional teams around value creation logic

• When stress-testing revenue, cost, and delivery assumptions

When Not to Use

• When the decision is narrow and operational only

• When financial or regulatory detail is required beyond high-level modeling

• When the business context is stable and well understood

Common Mistakes

• Filling blocks with activities rather than value logic

• Treating the canvas as a one-time exercise rather than a living model

• Failing to test assumptions with evidence or market feedback

Purpose of the Annual Strategy Cycle

The purpose of the Business Model Canvas is to provide a shared, visual structure for articulating how an organization creates and captures value. It enables leaders to test strategic coherence, identify gaps or misalignments, and evaluate the implications of changes in customers, offerings, partners, or cost and revenue structures before committing resources.

How to Apply

• Define target customer segments and their needs

• Articulate the value propositions delivered to each segment

• Map channels and customer relationships

• Identify revenue streams and pricing logic

• Define key resources, activities, and partnerships required

• Assess cost structure and economic viability

• Review for coherence, risk, and strategic alignment

Example Scenario

A digital health startup uses the Business Model Canvas to evaluate its subscription model. By clarifying customer segments, value propositions, and revenue streams, leadership identifies a mismatch between high acquisition costs and low customer lifetime value. The team revises its channel strategy and pricing model before scaling.

Boundaries

The Business Model Canvas does not replace detailed financial modeling, regulatory analysis, or operational planning. It frames business logic at a high level and must be paired with execution, governance, and risk tools to implement effectively.

What This Artifact Does

Structures business logic across nine components to design, test, and align how value is created, delivered, and captured.

You Provide

(You may provide some, all, or none of the items below. Partial inputs are valid.)

• Customer segments and target markets

• Value propositions and offerings

• Channels and customer relationship models

• Revenue streams and pricing assumptions

• Key resources, activities, and partnerships

• Cost structure and major expense drivers

• Written descriptions or pasted text

• Links to market research, financials, or strategy documents

• Files, PDFs, spreadsheets, images, and other uploads (always acceptable)

• Context notes

Core Question

Does our business model logically and economically create, deliver, and capture value?

Decision Logic

• If value propositions do not clearly solve customer problems → Redesign offering

• If costs exceed sustainable revenue → Adjust pricing, channels, or structure

• If execution depends on fragile partnerships or resources → Strengthen or simplify model

What the Output Means

• Coherent view of how the business operates

• Identification of assumption gaps and strategic risks

• Structured input for financial modeling, governance, and execution planning

Do Not Use When

• The decision is tactical and does not affect business logic

• Detailed compliance or accounting analysis is required

You do not need to complete every section below. Provide only the information you have available or wish to provide. The AI will generate output using only the inputs you supply and will not assume or infer missing information.

Section 1 — Customer Segments

What This Input Represents

The distinct groups of customers or users the organization aims to serve.

If You Have Materials, You May Provide (List file names here in your input document):

• Market research

• Customer personas

• Segmentation analyses

Guiding Questions:

• Who are the target customer segments?

• Which segments are most critical to success?

• Are there distinct needs across segments?

Section 2 — Value Propositions

What This Input Represents

The value delivered to each customer segment and the problems solved.

If You Have Materials, You May Provide (List file names here in your input document):

• Product or service descriptions

• Customer value studies

• Competitive comparisons

Guiding Questions:

• What value does each offering provide?

• What customer problems or needs are addressed?

• Why should customers choose this over alternatives?

Section 3 — Channels

What This Input Represents

How the organization reaches customers to deliver value.

If You Have Materials, You May Provide (List file names here in your input document):

• Channel strategies

• Distribution models

• Marketing plans

Guiding Questions:

• Through which channels are customers reached?

• Which channels are most effective and scalable?

• Where are channel costs or bottlenecks?

Section 4 — Customer Relationships

What This Input Represents

How relationships are established, maintained, and grown with customers.

If You Have Materials, You May Provide (List file names here in your input document):

• Customer lifecycle models

• CRM processes

• Retention or support strategies

Guiding Questions:

• How are customers acquired, retained, and supported?

• What type of relationship does each segment expect?

• Where are friction points in the customer experience?

Section 5 — Revenue Streams

What This Input Represents

How the organization generates income from each segment.

If You Have Materials, You May Provide (List file names here in your input document):

• Pricing models

• Revenue forecasts

• Billing structures

Guiding Questions:

• How does the business make money?

• What are customers willing to pay for?

• Which revenue streams are most uncertain or risky?

Section 6 — Key Resources

What This Input Represents

The assets required to deliver the value proposition.

If You Have Materials, You May Provide (List file names here in your input document):

• Asset inventories

• Technology platforms

• Human capital plans

Guiding Questions:

• What resources are essential to operate the model?

• Which resources are scarce or difficult to replace?

• Where are dependencies on critical assets?

Section 7 — Key Activities

What This Input Represents

The most important actions the organization must perform.

If You Have Materials, You May Provide (List file names here in your input document):

• Process maps

• Operating models

• Value chain analyses

Guiding Questions:

• What core activities create and deliver value?

• Which activities drive differentiation?

• Where are major execution risks?

Section 8 — Key Partnerships

What This Input Represents

The network of suppliers and partners that enable the model.

If You Have Materials, You May Provide (List file names here in your input document):

• Partner agreements

• Vendor lists

• Alliance strategies

Guiding Questions:

• Who are key partners or suppliers?

• What activities or resources are outsourced?

• Which partnerships are critical or fragile?

Section 9 — Cost Structure

What This Input Represents

The major costs and expense drivers of the business model.

If You Have Materials, You May Provide (List file names here in your input document):

• Cost breakdowns

• Budgets

• Financial statements

Guiding Questions:

• What are the most significant cost drivers?

• Which costs are fixed versus variable?

• Where could costs undermine viability?

Section 10 — Supporting Context, Files, and References

What This Input Represents

Any additional information that would help the AI interpret your business model accurately.

You May Include (List file names here in your input document):

• Strategic planning materials

• Market or customer research

• Financial models or projections

• Links to competitive intelligence

• Pasted text or excerpts

Additional Instructions (Optional)

You may add extra instructions to further shape the output, including:

Requesting PDF or other output formats
Limiting page length or response size
Layout preferences (section order, headings, structure, templates)
Specifying tone, style, or format (executive, concise, detailed, formal, etc.)
Output consistency preferences (fixed structure, standardized phrasing, strict formatting)
Prioritization or scoring preferences (how gaps, risks, or actions should be ranked)
Desired mode behavior as outlined in the section below
Any other constraints, rules, or priorities relevant to your use case

If included, the AI will follow these instructions when they do not conflict with the bridge’s execution rules. More specific instructions generally produce more consistent, repeatable, and targeted outputs.

Desired Mode Behavior

Strict Mode

• Maximize determinism and repeatability
• Minimize wording variation, structure changes, and interpretive flexibility
• Do not extend beyond explicit user inputs

Balanced Mode (Default)

• Maintain structure and discipline
• Allow limited analytical judgment where inputs are incomplete
• Do not introduce external assumptions

Exploratory Mode

• Expand hypothesis space and analytical angles
• Surface alternative interpretations and scenario paths
• Still grounded only in user-provided inputs

If no mode is specified, default to Balanced Mode.

What This Enables

Based on your prepared inputs, this artifact will generate a structured Business Model Canvas that evaluates coherence across all nine building blocks, surfaces key assumptions and risks, and highlights strategic implications for design, testing, and execution.

Canonical Input Rule (For All SolveBoard Artifacts)

Documents are optional. Sections may be partially completed or left blank. Structured answers to any subset of guiding questions constitute valid input. The AI will evaluate only provided information and will not infer missing content.

AI Execution Instructions

You are operating in Bridge Execution Mode. Follow these rules exactly. Do not reinterpret, summarize, optimize, or override them. Do not introduce external knowledge, assumptions, or inferred content. Evaluate only user-provided inputs. If required information is missing or ambiguous, flag it rather than guessing. Output must follow the defined Output section exactly.

Users may provide some, all, or none of the input sections. Process only what is explicitly provided. Treat empty sections as intentionally omitted.

Purpose

Generate a structured Business Model Canvas that tests the coherence and viability of how value is created, delivered, and captured.

What This Bridge Answers

Is our business model coherent, viable, and aligned with how we intend to create, deliver, and capture value?

Inputs (All Optional)

• Customer segments and needs

• Value propositions and offerings

• Channels, relationships, and revenue streams

• Key resources, activities, and partnerships

• Cost structure and financial assumptions

• Files, PDFs, spreadsheets, images, links, or other uploaded material

• Context notes

Note: Output Quality and specificity scale with input completeness. The user has been informed of this via the input sheet.

Processing Rules

A valid Business Model Canvas output must satisfy all of the following:

• All nine building blocks are explicitly addressed

• Assumptions are clearly stated and not implied

• Logical consistency between value, revenue, and cost is evaluated

When inputs are sparse:

• Produce the most complete output possible with available data

• Explicitly flag what's missing and how additional inputs would enhance the analysis

• Do not infer or assume missing information

Execution Steps

• Review inputs to define scope and target segments

• Populate each of the nine canvas components

• Identify gaps, contradictions, and high-risk assumptions

• Summarize strategic implications and next steps

Output

• Structured Business Model Canvas

• List of key assumptions and risks

• Strategic implications for design, testing, and execution

Failure Conditions / Misuse

• Leaving blocks blank or overly vague

• Confusing activities with value propositions or revenue logic

Mode Behavior (From Input Sheet)

Strict Mode

• Maximize determinism and repeatability
• Minimize wording variation, structure changes, and interpretive flexibility
• Do not extend beyond explicit user inputs

Balanced Mode (Default)

• Maintain structure and discipline
• Allow limited analytical judgment where inputs are incomplete
• Do not introduce external assumptions

Exploratory Mode

• Expand hypothesis space and analytical angles
• Surface alternative interpretations and scenario paths
• Still grounded only in user-provided inputs

If no mode is specified, default to Balanced Mode.

Additional Instruction Governance

User-provided additional instructions must be followed exactly unless they conflict with core Bridge Execution Rules. If a conflict exists, Bridge Execution Rules take priority.

Additional instructions may control format, tone, structure, length, or ordering, but must not introduce inferred content, external knowledge, or speculative assumptions.

If instructions are ambiguous, flag ambiguity rather than guessing.

Additional Instructions Execution Rule

If the user provides instructions in the Additional Instructions field, they are binding execution constraints.

Failure to follow them constitutes a Bridge Execution Failure.

Reminder to AI: If a format is requested (e.g., PDF, DOCX), the final output MUST be delivered in that format.

Artifact Instructions

This guide explains what information the Business Model Canvas artifact requires and how to prepare your inputs.

How to Prepare Your Input Document (Required Format)

Create a new Word (or similar) document.
Copy all text from the Input Sheet tab into the document.
Save it — this is now your Input Document.
Answer the guiding questions directly in the Input Document and reference any supporting files there.
Save the completed Input Document (Word, PDF, etc.).
Copy all text from the Bridge AI Prompt tab and paste it into the prompt field.
Attach the completed Input Document and any referenced files when submitting the prompt.

No Supporting Files? No Problem.

You can proceed without uploading any supporting documents, spreadsheets, dashboards, reports, or other attachments.

The Input Document is still required, but it may contain only plain-text answers to the guiding questions.

Written responses alone are sufficient for the AI to generate output.

Supporting files, links, and pasted materials are always optional.

Missing Inputs Are OK

You do not need to complete every section.
You do not need supporting files.

The AI will still run. It will:

Use only the inputs you provide
Skip or flag missing sections
Never fail due to incomplete information

Output quality scales with input depth — but execution never breaks.

Submitting Files

If you upload files, list each file name under the relevant “If You Have Materials” section in your Input Document. This ensures each file is clearly tied to its intended use.

What to Expect From This AI Bridge

This bridge generates a structured, high-value starting point, not a guaranteed final deliverable. Output quality improves as inputs become clearer, deeper, and more complete.

This artifact supports iteration. Users are encouraged to refine inputs, test variations, and rerun the bridge to improve results.

The AI organizes complexity and accelerates insight — but final judgment and decisions remain with the user.

In Short

Stronger inputs → stronger outputs
Iteration improves results
Cross-artifact testing can reveal new perspectives
This artifact enables progress, not perfection