Business Model Canvas
Expectations?
What actually is a
business model?
Tell me...
“A business model describes the rationale of how an organization creates, delivers, and captures value”
Customer Segments
People or organizations an enterprise aims to reach.
Customer Segments
For whom are we crea+ng value? Who are our most important customers?
Customer Segments
They represent separate segments if:
¤ Their needs require and justify a distinct offer; ¤ They are reached through different distribution channels; ¤ They require different types of relationship; ¤ They have substantially different profit abilities; ¤ They are willing to pay for different aspects of the offer.
Customer Segments
They represent separate segments if:
¤ Their needs require and justify a distinct offer; ¤ They are reached through different distribution channels; ¤ They require different types of relationship; ¤ They have substantially different profit abilities; ¤ They are willing to pay for different aspects of the offer.
Who are Facebook’s customers? To who is Facebook selling its products?
Value Proposition
Bundle of products and services that create value for a specific Customer Segment.
Value Proposition
What value do we deliver to the customers? Which problem are we helping to solve? Which customer needs are we sa+sfying?
Value Proposition
Customer value creation:
¤ “Getting the job done”; ¤ Performance; ¤ Customization; ¤ Design; ¤ Brand; ¤ Price
Value Proposition
Customer value creation:
¤ “Getting the job done”; ¤ Performance; ¤ Customization; ¤ Design; ¤ Brand; ¤ Price
Facebook?
Channels
The way a company communicates with and reach its customers segments to deliver a value proposition.
Channels
Through which channels do our Customer Segments want to be reached?
How are we reaching them now? How are we integrating them with customer routines?
Channels
¤ Raising awareness among customers about company’s
products and services;
¤ Delivering a Value proposition to customers
¤ Providing post-purchase customer support
Channels
¤ Raising awareness among customers about company’s
products and services;
¤ Delivering a Value proposition to customers
¤ Providing post-purchase customer support
Facebook?
Customer Relationships
Describes the types of relationships a company establishes with a specific Customer Segment.
Customer Relationships
What type of relationship does each of our costumer segments expect us to establish and maintain with them?
Customer Relationships
Drivers:
¤ Customer acquisition; ¤ Customer retention; ¤ Boosting sales (upselling).
Customer Relationships
Drivers:
¤ Customer acquisition; ¤ Customer retention; ¤ Boosting sales (upselling). Facebook?
Revenue Streams
The cash a company generates from each customer segment
Revenue Streams
For what value are our customers really willing to pay? How much does each Revenue Stream contribute to
overall revenues?
Revenue Streams
The different types of revenue streams:
¤ Transaction revenues resulting from one-time customer payment.
¤ Recurring revenues resulting from ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support.
Revenue Streams
The different types of revenue streams:
¤ Transaction revenues resulting from one-time customer payment.
¤ Recurring revenues resulting from ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support.
Facebook?
Key resources
The most important assets required to make a business model work.
Key resources
What Key Resources do our Value Proposition require? Our Distribution Channels? Customer Relationship?
Revenue Streams?
Key resources
¤ Physical;
¤ Intellectual;
¤ Human;
¤ Financial.
Key resources
¤ Physical;
¤ Intellectual;
¤ Human;
¤ Financial. Facebook?
Key activities
The most important things a company must do to make its business model work.
Key activities
What Key Activities do our Value Proposition require? Our Distribution Channels? Customer Relationship?
Revenue Streams?
Key activities
Some categories:
¤ Production;
¤ Marketing
¤ Problem solving;
¤ Network.
Key activities
Facebook?
Some categories:
¤ Production;
¤ Marketing
¤ Problem solving;
¤ Network.
Key partnerships
Describes the network of suppliers and partners that make the business model work.
Key partnerships
Who are our Key Partners/Suppliers? Which Key resources/activities are we acquiring from partners?
Key partnerships
Motivation for creating partnerships:
¤ Optimization and economy of scale;
¤ Reduction of risk and uncertainty;
¤ Acquisition of particular resources and activities.
Key partnerships
Motivation for creating partnerships:
¤ Optimization and economy of scale;
¤ Reduction of risk and uncertainty;
¤ Acquisition of particular resources and activities.
Facebook?
Cost structure
All costs incurred to operate a business model.
Cost structure
What are the most important costs inherent in our business model?
Which Key Resources/Ac+vi+es are most expensive?
Cost structure
Facebook?
Loans that change lives
Business Model Prototyping
Napkin Sketch Canvas Business Case Field Test
Business Model Prototyping
Napkin Sketch Canvas Business Case Field Test
We look for the apropriate business model
Business Model Prototyping
Napkin Sketch Canvas Business Case Field Test
We look for the apropriate business model
...so let’s generate option first!
Interested in knowing more? Contact me at [email protected]
Credits...
1. http://www.businessmodelgeneration.com/ 2. http://www.slideshare.net/Alex.Osterwalder/what-is-a-
business-model 3. http://www.slideshare.net/Alex.Osterwalder/business-models-
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