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Business Model Canvas

Map the nine building blocks of a business model on a single page, from key partners through to revenue streams.

Phase B, Business ArchitectureDerived from Business Model Canvas

Business Model Canvas: a distribution network operator on nine blocks

Osterwalder's nine blocks in their canonical layout, filled in for a regulated electricity distribution business. The right half is demand, the left half is supply, and the value proposition in the centre is the hinge between them.

The right side is who you serve and how you reach them; the left side is what it takes to deliver; the value proposition in the centre links the two. The cost and revenue blocks along the bottom check that the economics balance.

Business Model Canvas: a distribution network operator on nine blocks Osterwalder's Business Model Canvas as nine blocks in the canonical layout, grouped into three zones for a regulated electricity distribution operator. The supply zone on the left, with blue spines, holds Key partners, then Key activities above Key resources. The hinge in the centre is Value propositions, shown with a red spine and tint: reliable distribution, safe network access, open network data, capacity to connect. The demand zone on the right, with blue spines, holds Customer relationships above Channels, and Customer segments. Across the bottom, the Cost structure and Revenue streams bands carry the economics, and a red note states that revenue must cover cost. Supply: what it takes to deliverThe hingeDemand: who you serve Key partnersNational Grid ESOICPs and IDNOsConnections customersOfgem Key activitiesOperate the networkConnect new loadPublish LTDS data Key resourcesNetwork assetsGIS and SCADALicensed engineers Value propositionsReliable distributionSafe network accessOpen network dataCapacity to connect Customer relationshipsRegulated serviceConnection agreementsSelf-service portal ChannelsConnections portalThe network itselfData publication Customer segmentsConnected demandGenerators, storageOther networksLocal authorities Cost structureNetwork investment (RIIO-ED2)Operations and maintenanceConnections delivery Revenue streamsUse of System charges (DUoS)Connection chargesRegulated allowed revenue Demand and supply blocks (structure)Value proposition (the hinge) The economics must balance.Revenue streams have to cover the cost structure, and the value proposition is what makes customers willing to pay for it.