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840-450 · Question #45

Drag and Drop Question Consider the four building blocks of the BMC that are directly linked to the customer segment. Drag and drop the four correct building blocks from the left to the right. Not all

The correct answer is Value proposition; Key partners; Key activities; Customer relationships. BMC Building Blocks Directly Linked to Customer Segments Important caveat upfront: The provided "correct" answer appears to contain errors based on standard BMC theory (Osterwalder & Pigneur). I'll explain the correct framework and flag the discrepancy so you can study accurately

Business Model and Process Design

Question

Drag and Drop Question Consider the four building blocks of the BMC that are directly linked to the customer segment. Drag and drop the four correct building blocks from the left to the right. Not all options are used. Answer:

Exhibit

840-450 question #45 exhibit

Answer Area

Drag items

Key resourcesChannelsValue propositionKey partnersRevenue streamCost structureKey activitiesCustomer relationships

Correct arrangement

  • Value proposition
  • Key partners
  • Key activities
  • Customer relationships

Explanation

BMC Building Blocks Directly Linked to Customer Segments

Important caveat upfront: The provided "correct" answer appears to contain errors based on standard BMC theory (Osterwalder & Pigneur). I'll explain the correct framework and flag the discrepancy so you can study accurately.


Standard BMC Theory

The Business Model Canvas divides into two sides:

Right Side (Customer-Facing)Left Side (Infrastructure)
Customer SegmentsKey Resources
Value PropositionsKey Activities
ChannelsKey Partners
Customer RelationshipsCost Structure
Revenue Streams

The four building blocks directly linked to Customer Segments are the other four right-side blocks:

1. Value Proposition

Why directly linked: You design your VP for a specific customer segment. The relationship is definitional - without knowing who your segment is, you cannot define what value to offer. It's the core exchange: "We offer X to segment Y."

2. Channels

Why directly linked: Channels are how you reach and deliver value to your customer segments. Each segment may be reached through different channels. The link is direct: segment → how do we reach them?

3. Customer Relationships

Why directly linked: You define the type of relationship you establish with each segment (self-service, dedicated support, community, etc.). Segments determine relationship strategy directly.

4. Revenue Streams

Why directly linked: Revenue streams come from customer segments paying for your value proposition. Each segment may generate different revenue models (subscription vs. one-time, etc.).


What's Wrong with the Given Answer

Given AnswerCorrect per BMC?
Value PropositionYes - directly linked
**Key Partners **No - left-side block, linked to Key Activities/Resources
**Key Activities **No - left-side block, supports Value Proposition creation
Customer RelationshipsYes - directly linked

Key Partners and Key Activities are indirectly linked to Customer Segments through the value chain:

Key Partners → Key Activities → Value Proposition → Customer Segments

They are not directly linked.


Common Misconceptions

  • "Everything links to the customer" - True in a broad sense, but Key Activities and Key Partners are infrastructure blocks serving the left side of the canvas.
  • Confusing Revenue Streams with Cost Structure - Revenue Streams are customer-facing (directly linked); Cost Structure is not.
  • Forgetting Channels - Channels are easily overlooked but are one of the four direct links, since segments define which channels make sense.

Recommendation: If this is from a specific course or textbook, verify against their specific diagram. But by standard Osterwalder BMC theory, the correct four directly-linked blocks are Value Proposition, Channels, Customer Relationships, and Revenue Streams - not Key Partners or Key Activities.

Topics

#business model canvas#customer segments#building blocks#BMC relationships

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