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BusinessModelGenera6onCrea%ngYourCanvas

AdaptedfromBusinessModelGenera/onbyAlexanderOsterwalder&YvesPigneur,

Copyright2010andTheStartupOwner'sManualbySteveBlankand

BobDorf

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TheBusinessModelCanvas

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UnderstandingtheBusinessModelGenera=on

•  Itdescribeshowyoucreateanddelivervalue;Howyouwillsolveaproblem/makemoney

•  Itisanitera=veprocess•  Itcanformthefounda=onofabusinessplan•  Itisdynamicandagile•  Itisfocusedonthecustomer•  Ithasninebuildingblocks

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TheNineBuildingBlocksLePSide

• KeyResources• KeyAc=vi=es• KeyPartnerships• CostStructure

RightSide• ValueProposi=on• CustomerSegment/s• Channels• CustomerRela=onships• RevenueStreams

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ValueProposi=on

•  It’sthereasonwhycustomerswillcometoyouoveracompe=tor•  Thissolvesaproblemorsa=sfiesaneedforthecustomer•  It’sthe“bundle”ofbenefitsthatyouwilloffertothecustomer•  ProductorServicevaluecanbecreatedbynewness,performance,customiza=on,“geVngthejobdone,”design,brand/status,price,costreduc=on,riskreduc=on,accessibility,convenience/usability

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ValueProposi=on

•  “Theproductorservicebeingofferedtocustomers”“TheStartupOwner’sManual”,p.76

•  Thingsthatshouldbeincludedarebelow.– “Detailsabouttheproductorservice–  Itsfeaturesandbenefits–watchthis– Yourcompany’slong-termproductvision– Theini=alminimumviableproduct’

–  “TheStartupsOwner’sManual,p.76

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CustomerSegment/s

•  Whoareyoutryingtoreachandserve?•  Howmanyarethere?Howbigisyourmarket•  Paintadetailedpictureofyourcustomer•  Typesofsegments(Mass,Niche,Segmented,Diversified,Mul=-sided)

•  Absolutelyessen=altosuccess—keytoremainder•  SteveBlank’sCustomerDiscovery–  Integratesthecanvasintohismodel–  IDsTAM,SAM,andTargetMarket…Steppriortotheactualcanvas

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Channels

•  Howareyougoingtoreachthecustomersegmenttodeliveryourvalueproposi=on—howdotheywantreached?

•  Theseareyourtouchpointsw/yourcustomers•  Theseriseawareness,helpsw/proposi=onevalua=on,allowspurchase,thedelivery,andwaysofpost-purchasesupport

•  5phasesofthechannels:awareness,evalua=on,purchase,delivery,agersales

•  Channeltypes:Own(direct&indirect)andPartner(indirect)

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CustomerRela=onships

•  Whattypeofrela=onshipdoeseachofourcustomersegmentsexpect?

•  Whichoneshaveweestablished?•  Howcostlyarethey?•  Howaretheyintegratedwiththerestofyourbusinessmodel?•  CategoriesofRela=onships– Personalassistance,dedicatedpersonalassistance,self-service,automatedservices,communi=es,co-crea=on

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RevenueStreams

•  Howwillyourbusinessmakemoney?•  Forwhatvalueareyourcustomersreallywillingtopay?Forwhatdotheycurrentlypay?

•  Howmuchdoeseachrevenuestreamcontributetooverallrevenue?

•  Twotypes– One=mecustomerpayment– On-goingcustomerpayment

•  Mul=plewaystogeneraterevenue•  Differentpricingmechanisms

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KeyResources

•  Thesewillallowyoucreateandofferyourvalueproposi=on,reachyourmarket,maintaintherela=onshipsandearnrevenues

•  Whatkeyresourcesdoesyourvalueproposi=onsrequire?Distribu=onChannels?CustomerRela=onships,RevenueStreams

•  Typesofresources– Physical,Financial,Intellectual,andHuman

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KeyAc=vi=es

•  Thesearethemostimportantac=onsrequiredtocreateandofferyourvalueproposi=on,reachyourcustomersegments,maintainyourcustomerrela=onships,andearnrevenue

•  Keyac=vitycategories– Produc=on,ProblemSolving,Plalorm/Network(website,sogware,brand,etc.)

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KeyPartnerships

•  Thesearethenetworkofsuppliersandpartnersthatmakesitpossibletocreateandofferyourvalueproposi=ontoyourcustomersegment,maintainyourrela=onships,andearnrevenue.

•  Whoareyourkeypartners,keysuppliers?•  Whichkeyresourcesareyouacquiringfrompartners,whichkeyac=vi=esdopartnersperform?

•  Whydoyouneedapar=cularpartnership?

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CostStructure

•  Thistellsyouallthecostsincurredtooperateyourbusinessmodel

•  Thisisthecostofdoingbusiness•  Whatarethemostimportantcostsinherenttoyourbusinessmodel?

•  Whatkeyresourcesarethemostexpensive?•  Whichkeyac=vi=esarethemostexpensive?•  Twobroadclassesofcoststructures:Cost-driven&Value-Driven

•  CostStructureCharacteris=cs

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Discussion_______Ques=ons

RememberItera=on#1,2,3,…….or4isnotyour

finalcanvasEvery=meyoufindadifferenceormakeachangemaketheadjustment

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CustomerDiscoverySteveBlank

•  Searchingfor“…problem/solu=onfit:‘havewefoundaproblemlotsofpeoplewantustosolve(oraneedtheywantustofill)’and“doesoursolu=on(aproduct,awebsite,oranapp)solvetheprobleminacompellingway?’”

•  “Yourstartup’svalueproposi=onmatchesthecustomersegmentitplanstotarget.”

p.57,“TheStartupOwner’sManual,”SteveBlankandBobDorf

•  SizeofMarket----Addi=onalStep

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BusinessModelGenera=onSpecialARribu6on

AdaptedfromBusinessModelGenera/onbyAlexanderOsterwalder&YvesPigneur,Copyright2010

SteveBlankSerialEntrepreneur&Professor,StanfordU.

www.steveblank.comTheStartupOwner’sManual,SteveBlank&BobDorf

2012

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