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BUSINESS MODEL CANVAS
Idea to Business Workshop
2
V A L U E P R O P O S I T I O N S
TYPES OF CANVAS
BUINESS CANVAS  MODEL CONTAINING KEY RESOURCE, VALUE PROPOSITION, KEY ACTIVITITES , REVENUE
CHANNELS
BUSINESS MODEL
CANVAS
BUSINESS MODEL
CANVAS
1
2
5
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3
9
CUSTOMER SEGMENTATIONS
1
 Different groups of people or organizations an enterprise aims to
reach and serve
CUSTOMER GROUPS …
 Mass market (e.g., consumer electronics)
 Niche market (e.g., supplier-buyer relationship)
 Segmented (e.g., watch industry)
 Diversified (e.g., cloud computing)
 Multi-sided (e.g., credit card)
1
C U S T O M E R S E G M E N T A T I O N S
VALUE PROPOSITIONS
 the bundle of products and services that can create value for a
specific customer segments
1
2
2
V A L U E P R O P O S I T I O N S
VALUES MAY BE …
• How does your solution create value?
• Which one of our customer’s problems or needs are we helping
to solve?
• How will it make your customer’s life better?
2
V A L U E P R O P O S I T I O N S
VALUES SPECTRUM
 Newness
 Performance
 Customization
 Getting the JOB Done
 Design
 Brand/ Status
 Price
 Cost Reduction
 Accessibility
 Convenience/ Usability
2
V A L U E P R O P O S I T I O N S
EXAMPLES
 Amazon
 Apple
 D mart
CHANNELS
 how a company communicates with and reach its customer
segments to deliver a value proposition
1
2
3
Sales Force
Web Sales
Own Stores
Partner
Stores
Wholesaler
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Channel Types
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Own
Direct
Partner
Indirect
Channel Phases
How do we raise aware-
ness about our company’s
products and services?
1. Awareness
Sales Force
Web Sales
Own Stores
Partner
Stores
Wholesaler
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Channel Types
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Own
Direct
Partner
Indirect
Channel Phases
How do we help customers
evaluate our organization’s
Value Proposition?
2. Evaluation
Sales Force
Web Sales
Own Stores
Partner
Stores
Wholesaler
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Channel Types
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- - - - - - - - - - - - - - - - - - - - - - - - - - -
Own
Direct
Partner
Indirect
Channel Phases
How do we allow custom- ers
to purchase specific products
and services?
3. Purchase
Sales Force
Web Sales
Own Stores
Partner
Stores
Wholesaler
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Channel Types
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- - - - - - - - - - - - - - - - - - - - - - - - - - -
Own
Direct
Partner
Indirect
Channel Phases
How do we deliver a Value
Proposition to customers?
4. Delivery
Sales Force
Web Sales
Own Stores
Partner
Stores
Wholesaler
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Channel Types
- - - - - - - - - - - - - - - - - - - - - - - - - - -
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- - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - -
Own
Direct
Partner
Indirect
Channel Phases
How do we provide post-
purchase customer support?
5. After sales
Customer Segments, Value Proposition and
Channels
1
2
3
3
C H A N N E L S
Customer Relationships
4
C U S T O M E R R E L A T I O N S H I P S
TYPES OF CR
 Personal assistance (human interaction)
 Dedicated personal assistance (customer representative)
 Self-service (no direct relationship with customer)
 Automated (self-service with automated processes)
 Communities (connections between community members)
 Co-creation (beyond the traditional customer-vendor
relationship to co-create values with customers)
Building Strong with Customer Segments, Value
Propositions and Channels
1
2
3
4
C U S T O M E R R E L A T I O N S H I P S
4
REVENUE STREAMS
1
2 3
4
5
5
R E V E N U E S T R E A M S
REVENUE STREAMS
1. Transaction revenues resulting from one-time
customer payments
2. Recurring revenues resulting from ongoing
payments to either deliver a Value Proposition to
customers or provide post-purchase customer
support
There are several ways to generate Revenue Streams:
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising 5
KEY RESOURCES
The Key Resources Building Block describes the most important assets
required to make a business model work
1
2 3
4
5
6
KEY ACTIVITIES
The Key Activities Building Block describes the most important things a
company must do to make its business model work
1
2 3
4
5
6
7
KEY PARTNERSHIPS
The Key Partnerships Building Block describes the network of suppliers
and partners that make the business model work
1
2 3
4
5
6
7
8
8
K E Y P A R T N E R S H I P S
We can distinguish between four different types of
partnerships:
1. Strategic alliances between non-competitors
2. Competition: strategic partnerships between
competitors
3. Joint ventures to develop new businesses
4. Buyer-supplier relationships to assure reliable
supplies
8
K E Y P A R T N E R S H I P S
3 motivations for creating partnerships
1. Optimization and economy of scale
2. Reduction of risk and uncertainty
3. Acquisition of particular resources
and activities
COST STRUCTURE
The Cost Structure describes all costs incurred to operate a business
model
1
2 3
4
5
6
7
8
9
8
C O S T S T R U C T U R E
Two broad classes of business model Cost Structures:
1. Cost-driven
2. Value-driven
THE BUSINESS MODEL CANVAS
THE BUSINESS MODEL CANVAS
Key
Partners
Cost
Structure
Key
Activities
Key
Resources
Value
Proposition
Customer
Relationships Customer
Segments
Channels
Revenue
Streams
BUINESS CANVAS  MODEL CONTAINING KEY RESOURCE, VALUE PROPOSITION, KEY ACTIVITITES , REVENUE
THE BUSINESS MODEL CANVAS
left brain
logic
right brain
emotion
left canvas
efficiency
Right canvas
value
BUINESS CANVAS  MODEL CONTAINING KEY RESOURCE, VALUE PROPOSITION, KEY ACTIVITITES , REVENUE
Skype

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BUINESS CANVAS MODEL CONTAINING KEY RESOURCE, VALUE PROPOSITION, KEY ACTIVITITES , REVENUE

  • 1. BUSINESS MODEL CANVAS Idea to Business Workshop
  • 2. 2 V A L U E P R O P O S I T I O N S TYPES OF CANVAS
  • 6. CUSTOMER SEGMENTATIONS 1  Different groups of people or organizations an enterprise aims to reach and serve
  • 7. CUSTOMER GROUPS …  Mass market (e.g., consumer electronics)  Niche market (e.g., supplier-buyer relationship)  Segmented (e.g., watch industry)  Diversified (e.g., cloud computing)  Multi-sided (e.g., credit card) 1 C U S T O M E R S E G M E N T A T I O N S
  • 8. VALUE PROPOSITIONS  the bundle of products and services that can create value for a specific customer segments 1 2
  • 9. 2 V A L U E P R O P O S I T I O N S VALUES MAY BE … • How does your solution create value? • Which one of our customer’s problems or needs are we helping to solve? • How will it make your customer’s life better?
  • 10. 2 V A L U E P R O P O S I T I O N S VALUES SPECTRUM  Newness  Performance  Customization  Getting the JOB Done  Design  Brand/ Status  Price  Cost Reduction  Accessibility  Convenience/ Usability
  • 11. 2 V A L U E P R O P O S I T I O N S EXAMPLES  Amazon  Apple  D mart
  • 12. CHANNELS  how a company communicates with and reach its customer segments to deliver a value proposition 1 2 3
  • 13. Sales Force Web Sales Own Stores Partner Stores Wholesaler - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Channel Types - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Own Direct Partner Indirect Channel Phases How do we raise aware- ness about our company’s products and services? 1. Awareness
  • 14. Sales Force Web Sales Own Stores Partner Stores Wholesaler - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Channel Types - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Own Direct Partner Indirect Channel Phases How do we help customers evaluate our organization’s Value Proposition? 2. Evaluation
  • 15. Sales Force Web Sales Own Stores Partner Stores Wholesaler - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Channel Types - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Own Direct Partner Indirect Channel Phases How do we allow custom- ers to purchase specific products and services? 3. Purchase
  • 16. Sales Force Web Sales Own Stores Partner Stores Wholesaler - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Channel Types - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Own Direct Partner Indirect Channel Phases How do we deliver a Value Proposition to customers? 4. Delivery
  • 17. Sales Force Web Sales Own Stores Partner Stores Wholesaler - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Channel Types - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Own Direct Partner Indirect Channel Phases How do we provide post- purchase customer support? 5. After sales
  • 18. Customer Segments, Value Proposition and Channels 1 2 3 3 C H A N N E L S
  • 20. 4 C U S T O M E R R E L A T I O N S H I P S TYPES OF CR  Personal assistance (human interaction)  Dedicated personal assistance (customer representative)  Self-service (no direct relationship with customer)  Automated (self-service with automated processes)  Communities (connections between community members)  Co-creation (beyond the traditional customer-vendor relationship to co-create values with customers)
  • 21. Building Strong with Customer Segments, Value Propositions and Channels 1 2 3 4 C U S T O M E R R E L A T I O N S H I P S 4
  • 23. 5 R E V E N U E S T R E A M S REVENUE STREAMS 1. Transaction revenues resulting from one-time customer payments 2. Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support
  • 24. There are several ways to generate Revenue Streams: Asset sale Usage fee Subscription fees Lending/Renting/Leasing Licensing Brokerage fees Advertising 5
  • 25. KEY RESOURCES The Key Resources Building Block describes the most important assets required to make a business model work 1 2 3 4 5 6
  • 26. KEY ACTIVITIES The Key Activities Building Block describes the most important things a company must do to make its business model work 1 2 3 4 5 6 7
  • 27. KEY PARTNERSHIPS The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work 1 2 3 4 5 6 7 8
  • 28. 8 K E Y P A R T N E R S H I P S We can distinguish between four different types of partnerships: 1. Strategic alliances between non-competitors 2. Competition: strategic partnerships between competitors 3. Joint ventures to develop new businesses 4. Buyer-supplier relationships to assure reliable supplies
  • 29. 8 K E Y P A R T N E R S H I P S 3 motivations for creating partnerships 1. Optimization and economy of scale 2. Reduction of risk and uncertainty 3. Acquisition of particular resources and activities
  • 30. COST STRUCTURE The Cost Structure describes all costs incurred to operate a business model 1 2 3 4 5 6 7 8 9
  • 31. 8 C O S T S T R U C T U R E Two broad classes of business model Cost Structures: 1. Cost-driven 2. Value-driven
  • 33. THE BUSINESS MODEL CANVAS Key Partners Cost Structure Key Activities Key Resources Value Proposition Customer Relationships Customer Segments Channels Revenue Streams
  • 35. THE BUSINESS MODEL CANVAS left brain logic right brain emotion
  • 38. Skype