Creating and launching successful products requires careful planning and execution. One tool that can help you do just that are different type of product management canvas. They are used by Product Managers and other stakeholders to visualize and organize the key components of a product, including its value proposition, customer segments, revenue streams, and more.
In this article, we will dive into some of the most popular types of canvases used by Product Managers, including the Business Model Canvas, the Value Proposition Canvas, the Lean Canvas.
Business Model Canvas
The Business Model Canvas is a popular strategic management tool to visualize and organize the key components of a business model. It was developed by Alexander Osterwalder and Yves Pigneur in their book “Business Model Generation.”
The canvas consists of nine building blocks that represent the major elements of a business model. These building blocks are:
- Customer Segments – specific groups of customers that a business serves
- Value Propositions – unique value that a business delivers to its customers
- Channels – means by which a business delivers its value proposition to its customers
- Customer Relationships – types of relationships a business establishes with its customers
- Revenue Streams – sources of revenue for a business
- Key Activities – critical activities that a business must perform to deliver its value proposition
- Key Resources – assets that a business needs to deliver its value proposition
- Key Partners – outside entities that a business relies on to operate
- Cost Structure – costs associated with operating a business model
The Business Model Canvas provides a visual representation of a business model, allowing Product Managers to quickly assess and iterate on their strategy. It also encourages cross-functional collaboration, as team members from different departments can contribute to the canvas and work together to create a cohesive business model.
Value Proposition Canvas
The Value Proposition Canvas is a tool to analyze and design value propositions that meet the needs of their target customers.
The canvas consists of two main parts:
- Customer Profile – this part of the canvas helps identify and understand the specific jobs, pains, and gains of their target customers.
- Jobs refer to the tasks and activities that customers are trying to accomplish.
- Pains refer to the negative emotions, obstacles, and risks associated with completing those tasks.
- Gains refer to the positive outcomes, benefits, and results that customers are seeking.
- Value Map – this part of the canvas helps to design and evaluate value propositions that address the jobs, pains, and gains of their target customers.
The value proposition describes the unique bundle of products, services, and experiences that a company offers to its customers.
The value map consists of three parts:
- Products and Services – refer to the specific features and functions of the value proposition
- Pain Relievers – refer to how the value proposition eliminates or reduces the negative emotions, obstacles, and risks experienced by customers
- Gain Creators – refer to how the value proposition delivers the positive outcomes, benefits, and results that customers are seeking
The Lean Canvas is a one-page template that helps to quickly and easily capture and iterate on their business model. It is a variation of the Business Model Canvas, developed by Ash Maurya in his book “Running Lean.”
The Lean Canvas consists of nine building blocks that represent the key elements of a business model.
These building blocks are:
- Problem – a specific problem that the business is trying to solve for its customers
- Solution – a unique solution that the business offers to address the customer’s problem
- Key Metrics – specific metrics that the business will track to measure its success and progress
- Unique Value Proposition – unique value that the business delivers to its customers
- Unfair Advantage – a unique advantage or asset that the business possesses that is difficult for competitors to replicate
- Channels – means by which the business delivers its value proposition to its customers
- Customer Segments – specific groups of customers that the business serves
- Cost Structure – costs associated with operating the business
- Revenue Streams – sources of revenue for the business
The Lean Canvas is designed to be a quick and flexible tool that allows them to rapidly iterate on their business model and strategy.
It emphasizes a customer-centric approach, where the problem and unique value proposition are the starting points for building the business model.
The canvas can be used by startups and established companies alike, as it allows for easy pivoting and adaptation to changing market conditions.