Business Model Canvas - Tool 8 - Business Model Canvas tool introduction

Sep 12, 2026

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Business Model Canvas (BMC) explains how to structure a clear, one-page view of a product or service as a standalone revenue center. It translates business model thinking into nine core components—partners, activities, resources, value proposition, customer relationships, channels, customer segments, cost structure, and revenue streams—supporting viability checks and business opportunity confirmation. The guidance connects BMC use to new product development stages, using earlier toolkit inputs, keeping alignment through design revisions, and reducing risk during the “Valley of Death.”

LanguageEnglish

CategoryPresentations

FormatPDF

Pages20

Reading Time7 min

AccessFree to download

The Business Model Canvas tool

Purpose of the BMC tool in NPD

The nine components of the BMC

Timing: Idea, Screen, Design, and Development stages

Using BMC outputs to interpret risks

Toolkit Using Inventionsin the Public Domain Tool 8 Business Model Canvas Tool 8/ Business Model Canvas In this document we will explain how to develop a business model canvas (BMC) . The BMC provides an outline of how the product or service, as a standalone revenue center, makes money or, in the case of a nonprofit entity, meets the designated mission in a financially sustainable way. It is like a business plan for a one product or service company. In new product development (NPD) it can be used to orient the design team to the context in which the product or service will be sold (or provided) and deployed. What is the Business Model Canvas tool? The BMC tool can be used at any stage during the NPD process to help you visualize your product or service from a business perspective, evaluate whether it seems to be a viable revenue and profit generator, and confirm there is a viable business opportunity for the product or service being considered or developed. The BMC tool guides you through a process for gathering information developed using other tools from the Toolkit, and arranging the information in nine boxes that represent different fundamental business components which, taken together, provide a one-page“snapshot” of the business prospects for the product or service you are developing. The information in a BMC can be used as an outline for drafting a formal business plan document with financial projections and an action roadmap for one to three years into the future. The BMC is discussed in the WIPO publication Using Inventions in the Public Domain: A Guide for Inventors and Entrepreneurs (2020), in section 7 of Module III,“Drafting a business model canvas.” This publication summarizes how the BMC works as follows (page 49): “A business model canvas focuses on the synergy between the nine components listed below: – Key partners who contribute to making your business a success. – Key activities that are carried out to implement the business model and create value. – Key resources that are needed to create value and are integral to the business model. – Value proposition that is being offered as products which create value for the customers. – Customer relationships that are key in generating demand. – Channels of distribution that are used to take products to customers/end-users. – Customer segments that comprise buyers that can be categorized. – Cost structure that results from understanding the business model. – Revenue streams that distinguish and define pricing models that help in value capture.” 2 The BMC tool helps you identify the fundamental components of a successful business model for your NPD project. Customer-focused components are: customer segments, value proposition, customer relationships, channels and revenue streams. Components focused on what is necessary to build customer relations and generate revenues by delivering the value proposition are: key activities, key resources, key partners and cost structure. Here, we show how to use the BMC tool at the beginning of the Design stage (see Figure 1) . However, because a BMC can be generated using existing information that only needs to be updated, it can be used at any stage of the NPD process when you want to check the viability of your business model. When used at the beginning of the Design stage, the BMC summarizes findings from prior stages and gate reviews in your NPD project. In the Idea and Screen stages, you used the following tools from the Toolkit: Project Charter, Action Plan, Voice of the Customer, Competitive Advantage, Freedom to Operate, Value Chain and SWOT Analysis. The information and insights you gained from using these tools will be used as inputs for the preliminary BMC tool. As a design is developed, the BMC should be revised as necessary to ensure it is aligned with the final design. As you prepare to move into the Development stage, where you enter the depths of the “Valley of Death,” a

FAQs

What is the Business Model Canvas (BMC) tool used for?

The BMC tool visualizes a product or service from a business perspective, helping assess whether it can generate viable revenue and profit and confirm a viable business opportunity.

Which nine components are included in a Business Model Canvas?

The BMC covers key partners, key activities, key resources, value proposition, customer relationships, channels, customer segments, cost structure, and revenue streams.

When should a BMC be created during the new product development (NPD) process?

A BMC can be generated at any NPD stage using existing information, but when used at the beginning of the Design stage it summarizes earlier findings; it can also be updated near the end of Design and before major design decisions.

Sep 12, 2026

Upload by Jiven