business model canvas · •also go to resources and download and the business model canvas poster....
TRANSCRIPT
College of Education
School of Continuing and Distance Education 2016/2017 – 2017/2018
Business Model Canvas
Lecturers: Dr. Samuel C.K. Buame & Mr. Shelter S.K. Teyi Contact Information: [email protected]
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Session Overview
• This session will discuss how entrepreneurs can create a blueprint for their businesses using nine (9) key components.
• The 9 components to be discussed are: value proposition, customer segments, customer relationships, channels, revenue streams, key activities, key partners, key resources and cost structure.
Slide 2
Goals and Objectives
• At the end of the session, the student will:
1. Know the various components of the business model canvas.
2. Design a business model
3. Create a company
Slide 3
Session Outline
The main topic to be covered in the session is
The Business Model Canvas
Slide 4
Reading List
• Go to resources and download the Business Model Generation preview (pages 15 of 72 to 46 of 72 are absolutely important).
• Also go to resources and download and the business model canvas poster.
Slide 5
BUSINESS MODEL CANVAS
Topic 1
Slide 6
A business model - Definitions
• A business model describes the rationale of how an organization creates, delivers, and captures value.
• A business model describes all the parts of the company necessary to execute on its mission profitably.
Slide 7
Components of a Business Model
• The business model canvas has 9 building blocks
1. Customer Segments
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partners
9. Cost Structure
Slide 8
Components of a Business Model (cont’d)
• The first 5 building blocks represent the front while the last 4 represent the back- end of the canvas.
• While the front of the canvas focus on the customer, the back-end deals with all the things that are done “back stage” to ensure that the customer is satisfied/delighted.
1. Customer Segments
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
Slide 9
images by JAM
CANVAS OVERLAY – As developed by Alexander Osterwalder
& Yves Pigneur
OFFER
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMS COST STRUCTURE
KEY
ACTIVITIES
KEY
PARTNERS
KEY
RESOURCES
1. Customer Segments
• Which customers are you serving?
• How will you do your segmentation – targeting -
positioning?
Slide 11
2. Value Proposition
• What are you offering to your customers?
• What is that getting done for them?
• Do they care about your solution?
• What value do we deliver to the customer?
• Which one of our customer’s problems are we helping to solve?
• Which customer needs are we satisfying?
• What bundles of products and services are we offering to each Customer Segment?
Slide 12
2. Value Proposition
• Problem Statement: What is the problem?
• Technology / Market Insight: Why is the problem so
hard to solve?
• Market Size: How big is this problem?
• Competition: What do customers do today?
• Product: How do you do it?
Slide 13
3. Channels
• How do you want to sell your product?
• Through which interaction points?
• Through which Channels do your customer segments want to be reached?
• How are we reaching them now?
• How are our Channels integrated?
• Which ones work best?
• Which ones are most cost-efficient?
• How are we integrating them with customer routines?
Slide 14
4. Customer Relationships
• How do you Get, Keep and Grow customers?
– Customer acquisition
– Customer retention
– Boosting sales (upselling)
• How will customers hear about your product?
• What relationships are you establishing with
each segment?
Slide 15
5. REVENUE STREAMS
• The strategy the company uses to generate cash from each customer segment –
• What are customers really willing to pay for?
how?
• Are you generating one-off or repetitive
revenues?
Slide 16
6. KEY RESOURCES
• Which resources underpin your business
model?
– Physical
– Intellectual
– Human
– Financial
• Which assets are essential?
Slide 17
7. Key Activities
• The Key Activities Building Block describes the most important things a company MUST DO to make its business model work
Slide 18
8. KEY PARTNERS
• Which partners and suppliers leverage your
model?
• Who do you need to rely on?
• Four different types of partnerships:
• Strategic alliances between non-competitors
• Coopetition: strategic partnerships between competitors
• Joint ventures to develop new businesses
• Buyer-supplier relationships to assure reliable supplies
Slide 19
9. Cost Structure
• The Cost Structure describes all costs incurred to operate a business model.
– Cost-driven
– Value-driven
– Fixed costs
– Variable costs
– Economies of scale
– Economies of scope
Slide 20