3. Applying the Business Model Canvas

The biggest Business Model success story is Apple. Apple was a game changer when it introduced the iPod to the world. Through iTunes, Apple integrated device, software and an online store into an experience that set the music industry on its ear.

Even though Apple was in no way the first entrant into the mp3 player market, its unique and well-executed business model ensured lasting success. This business model was in essence the seamless coming together of the key components of the business model canvas to leverage its distinctive value proposition. Apple has lasting partnerships through the deals it negotiated with music producers, so it could sell their music through its store.

Apple revenue stream comes from the sale of its iPods. However, the added benefit of the online store creates a package that competitors have been hard pressed to match.

The Business Model Canvas is a one-page overview that lays out both what you do (or want to do), and how you go about doing it; enabling structured conversations around management and strategy by laying out the crucial activities and challenges involved with your initiative and how they relate to each other. This visual format, is useful for both existing and new organizations and businesses. Existing programs can develop new initiatives and identify opportunities while becoming more efficient by illustrating potential trade-offs and aligning activities. New programs can use it to plan and work out how to make their offering real.

The individual elements prompt thoughts within the separate activities or resources, while the capability to have the complete overview encourages fresh perspectives and ideas about how those pieces fit together. This structure also helps to keep group discussions more focused and bring everyone onto the same page.