Business Model Generation
11 likes2,160 views
The document defines Osterwalder and Pigneur's business model framework, which consists of 9 interrelated building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It provides definitions for each block and explains that the business model describes how an organization creates, delivers, and captures value for its customers and itself.
![BUSINESS MODEL
AS DEFINED BY OSTERWALDER AND PIGNEUR
“A business model…show[s] the
logic of how a company
intends to make money.”](https://image.slidesharecdn.com/businessmodelgeneration-111108075052-phpapp02/85/Business-Model-Generation-3-320.jpg)
Business Model Generation
- 2. BUSINESS MODEL AS DEFINED BY OSTERWALDER AND PIGNEUR “A business model describes the rationale of how an organization creates, delivers, and captures value”
- 3. BUSINESS MODEL AS DEFINED BY OSTERWALDER AND PIGNEUR “A business model…show[s] the logic of how a company intends to make money.”
- 4. There are nine essential and interrelated parts within any business covering “customers, offer, infrastructure and financial viability”
- 5. THE 9 BUILDING BLOCKS 1 CUSTOMER SEGMENTS 2 VALUE PROPOSITIONS • Group of people a company • Products and services that targets and chooses to serve create value for the specified Customer Segment • Distinctly segmented based on common needs/attributes • Either solve a customer problem or satisfie a customer • Heart – “For whom are we need – “What value do we creating value?” deliver to the customer? • Mass? Niche? Segmented? Diversified? Multi-sided markets? • Newness? Performance? Customization? Convenience/ Usability? Brand? Price?
- 6. THE 9 BUILDING BLOCKS 3 CUSTOMER SEGMENTS 4 CUSTOMER RELATIONSHIPS • Customer Touch Points • Types of relationships utilized to deliver a Value established with a specific Proposition Customer Segment • Finding the right mix/match • Motivated by Customer between Channel Types and Acquisition/ Customer Phases is crucial – “Through Retention/ Boosting Sales – which Channels do our “What type of relationship Customer Segments want does each of our Customer to be reached?” Segments expect us to • Partner/Own/Indirect/Direct with establish and maintain with Awareness/Evaluation/ them?” Purchase/Delivery/After Sales • Personal Assistance? Self-service? Automated services? Co-creation?
- 7. THE 9 BUILDING BLOCKS 5 REVENUE STREAMS 6 KEY RESOURCES • Cash Earnings generated • Most important assets from each Customer Segment required to make the business model work • Transaction vs. Recurring Revenues , Fixed vs. Dynamic • Allow the company to create Pricing - “How much does and offer a Value Proposition, each Revenue Stream reach markets, maintain contribute to overall Customer relationships, and revenues?” earn revenues – “What Key Resources do our Value • Asset Sale? Usage Fee? Subscription Fee? Lending/Renting/Leasing? Propositions require?” Licensing? Brokerage Fees? Advertising? • Physical? Intellectual? Human? Financial?
- 8. THE 9 BUILDING BLOCKS 7 KEY ACTIVITIES 8 KEY PARTNERSHIPS • Most important activities • Most important network required to make the business of suppliers / partners model work required to make the business model work • Routine/critical tasks that engage customers and turn a • Motivated by optimization and profit – “What Key Activities economy of scale/ Reduction do our Value Proposition of risk/ Acquisition of require?” particular resources – “Who • Production? Problem solving? are our Key Partners? Who Platform/Network? are our key suppliers?” • Strategic Alliance? Coopetition? Joint Venture? Buyer-Supplier?
- 9. THE 9 BUILDING BLOCKS 9 COST STRUCTURE • All/Most important costs incurred to operate a business model • Cost-driven vs. Value-driven Cost Structures – “What are the most important costs inherent in our business model?” • Fixed costs? Variable costs? Economies of Scale? Economies of Scope?
- 10. A flexible template for capturing, analyzing, and creating a shared language between the 9 building blocks of a business model
- 11. THE BUSINESS MODEL CANVAS
- 12. THE BUSINESS MODEL CANVAS http://www.businessmodelgeneration.com/toolbox
- 14. BUSINESS MODEL GENERATION Plot the Understand Find the Regularly re- Review & Rebuild Wall Poster Design & Execute Sketch & Post Canvas on a and sketch pattern*/s assess Poster & put out business that best suit viability & on the wall model using your business future promise then design with a SWOT drawings & within each of moveable your own Mobilize the 9 and post-its rebuild design Design & as necessary Understand Implement Manage * “ U N BU N D L E D ” BU S I N E S S M O D E L / T H E LO N G TA I L / M U LT I - S I D E D P L AT F O R M / “ F R E E ” B U S I N E S S M O D E L / “ O P E N ” B U S I N E S S M O D E L
- 15. HTTP : / / WWW. BUSINESSMODELGENERATION . COM/ BE STRATEGIC.