In your own words, explain three of the nine building blocks for managers to use in developing an innovative and effective business model.

The business model, main customer section, distribution channels, interactions, core capacity, business designs, partners, revenue streams and cost structures are Osterwalder's nine building blocks for managers to use in the development of an innovative and effective business model (Trevino, s., et al., 2009). The basic activities of the organization are nine building blocks of which, sales sources, expense structures and core efficiency. A business must consider its key strengths before it heads to the market. In other words, they differ from other rivals in their ability and advantages.

They should be precise in describing the key capability of the business model. A central skill, for example, is not customer service; the company has customer service 24 hours a day, where consumers speak to a real person who is a professional engineer. It is anticipated that customers will be likely to take advantage of our competitiveness to purchase more services from us. Revenue streams are all the ways that the company gets revenue.

A business model should describe the anticipated sources, periods and quantities of profit predicted and how internal and external variables can be influenced by this distribution and how these factors can be mitigated. Finally, cost structures refer to both fixed and variable operating costs required to operate, produce a product or perform a service. In comparison to the expected revenue source, the expense ratios would determine the expected costs, in effect reflecting the projected productivity of the product.