Alexander Osterwalder and Yves Pigneur’s Business Model Canvas has become the standard tool for describing your organization’s business model. The canvas has introduced business model thinking into the mainstream and has proven to be a fantastic tool for visualizing your business model. As one of the 470 co-creators I’ve always been a fan and proud member of the Business Model Generation.

Osterwalder developed the nine building blocks of the canvas in his doctoral research almost 10 years ago, based on what we knew at that time on business models (You can download the thesis here). Yet, our understanding of business models has developed considerably over the last decade.

Having described 100+ business models using the canvas (www.businessmodelgallery.com) and having used it in training and consulting engagements with dozens of clients all over the world, often discussing the advantages and disadvantages, I think it is time for an update.

Based on a systematic literature review of definitions and components of the business model, I collected and analyzed 180 sources (articles, books, studies, …) dealing with the business model concept and extracted 290 statements on what a business model is, what its role and components are.

This research, combined with the practical experiences using the business model canvas and discussions with executives all around the world, led to the development of a new template. You will recognize some of the components are the same, while others have been extended, and still others are new.