The business model canvas has nine basic building blocks and specific relations between those building blocks.
Customer segments (CS)
In the Business Model Canvas, "Customer Segments" are the groups of customers that the company ultimately serves, i.e. the ones that consume and pay for the services. It is characteristic of the BRAINCHILD ESSENTIALS model that this could basically be anybody. Let us just remind ourselves that customers here are the ones that use the service to get their business done, or get their personal lives in order.
Value Propositions (VP)
The value propositions reflect the customer problems and needs. This is the central element that describes why the customer would ultimately pay for the product or service.
Revenue Streams (RS)
Revenue streams are the result of value propositions that are successfully offered to customers.
Key Resources (KR)
Key resources are the assets required to offer and deliver the previously mentioned elements
Key Activities (KA)
The key resources perform key activities.
The obvious key activity at a software company is: develop software. In the long run, these should increase the value of the code base.
Key Partnerships (KP)
Some activities are outsourced, and some resources are acquired outside the enterprise.
A fundamental choice for every software company is ownership of development tools, as the dependence on these is of strategic importance.
Cost Structure (CS)
All business model elements discussed above impact the cost structure.
In more traditional IT service models the revenue streams are tightly coupled to the cost structure.