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Designing a Business
Model
Master of Creative Technology 2014
Business Model
A business model describes the rational of how
an organization creates, delivers and captures
value
A business model is nothing else than a
representation of how an organization makes (or
intends to make) money or add value.
Designing a Business
Model
It is a shared language for describing,
visualizing, assessing and changing business
models.
Designing a Business
Model
9 Building Blocks
Designing a Business
Model
Customer Segment
The Customer Segments Building
Block defines the different groups of
people or organizations an
enterprise aims to reach and serve
Customer Segment
For whom we are creating value?
Who are our most important customers?
Customer Segment
Mass Market
Niche
Segmented Market
Diversified Market
Value Propositions
The Value Propositions Building
Block describes the bundle of
products and services that create
value for a specific Customer
Segment
Value Propositions
What value do we deliver to the customer?
Which one of our customer’s problems are we
helping to solve?
Which customers needs are we satisfying?
Value Propositions
Newness
Performances
Customization
Design
Brand/ Status
Prices
Cost or Risk reduction
Accessibility
Convenience / usability
Channels
The Channels Building Block
describes how a company
communicates with and reaches its
Customer Segments to deliver a
Value Proposition
Channels
Through which channels do our Customer
Segments want to be reached?
How are we reaching them?
Which one works best? Cost, reach, customers routines
Customer Relationship
The Customer Relationships
Building Block describes the types
of relationships a company
establishes with specific Customer
Segments
Customer Relationship
What type of relationship does each of our
customer expect us to establish and maintain
with them?
Which one works best? Cost, business resources,
Customer Relationship
Personal Assistance
Dedicated Personal assistance
Automated Services
Communities
Co-creation
Revenue Streams
The Revenue Streams Building
Block represents the cash a
company generates from each
Customer Segment
Revenue Streams
For what value our customers really willing to
pay?
For what they are currently paying, what they
prefer to pay?
Revenue Streams
Asset Sale
Usage fee
Subscription fee
Lending/renting/leasing
Licensing
Brokerage fee
Advertising
Key Resources
The Key Resources Building Block
describes the most important assets
required to make a business model
work
Key Resources
What key resources does our propositions
require?
Key Resources
Physical
Financial
Intellectual
Human
Key Activities
The Key Activities Building Block
describes the most important things
a company must do to make its
business model work
Key Activities
Production
Problem solving
Network
Key Partners
The Key Partnerships Building Block
describes the network of suppliers
and partners that make the business
model work
Key Partners
What are our key partners?
Who are our key suppliers?
Resources we acquire, activities they perform
Cost Structure
The Cost Structure describes all
costs incurred to operate a business
model
Cost Structure
Fixed cost
Variable cost
Cost drive
Value drive
Epicenter of Business
Model
Resource Driven- Amazon
Offer Drive – Telcos
Customer Driven – Student offer
Finance Driven – Reduce cost or increase
revenue
Multiple Epicenter Driven
Most Innovative Business Model
Business model part 1 1
Business model part 1 1
AUT Venture Fund
http://www.aut.ac.nz/study-at-aut/study-
areas/business/student-opportunities/get-
involved/aut-venture-fund

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Business model part 1 1

Editor's Notes

  • #9: Segmented Ex: Credit Card
  • #27: Joint venture
  • #31: http://www.nzte.govt.nz/en/news-and-media/features/2013-new-zealand-international-business-awards-finalists/#innovativeBM