The Business Model Canvas
A light saber for your disruptive tool belt
Pete Cohen
17 June 2014
Two business analysts walk into a bar…
Content with no heading
www.businessmodelgeneration.com
Content with no heading
Content with no heading
Agenda for today
• Why use it?
• Step through the 9 building blocks of
the business model canvas
• Explore a case study - ...
Why use the Business Model Canvas?
A great tool for agile practitioners
• A visual information radiator
• Fosters collaboration
• Encourages holistic thinking
A secret weapon for consulting
• Build context very quickly
Essential for entrepreneurs
“I believe that the life of any startup
can be divided into two parts:
before product/market f...
Essential for intrapreneurs
“...companies …can create massive
growth by combining difficult to replicate
assets with entre...
Simple but powerful
• Lightweight – not a hefty document
• Deliberately constrained to avoid too
much detail
• Accessible ...
Content with no heading
Content with no heading
Customer Segments
• Add text here
Who are we creating value for?
Value Proposition
• Add text here
What value do
we deliver?
What problem
are we
solving?
Channels
• Add text here
How do we
reach our
customers?
• Add text here
Customer Relationships
What type of
relationship
does each of
our Customer
Segments
expect?
How costly are...
• Add text here
Revenue Streams
What do our
customers pay
for?
How do they
pay?
• Add text here
Key Resources
What key
resources
do we
require to
deliver
value?
• Add text here
Key Activities
What key
activities
are done
to deliver
value?
• Add text here
Key Partners
Who are our key
partners?
• Add text here
Cost Structure
What are our key costs?
Content with no heading
Product Market
Content with no heading
Optimise and
accelerate
Learn and
pivot
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Struct...
National Cat
Day
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Cha...
Criticisms and shortcomings of the
business model canvas?
Criticisms and shortcomings
• Where do we capture the other stuff
that comes up in conversation?
• Competitors
• Where is ...
A canvas for every occasion…
Creative Commons
Share - copy and redistribute the material in
any medium or format.
Adapt - remix, transform, and build u...
Social Enterprise Canvas
Key
Resistances
Enterprise
Structure Opportunity
as
Hypothesis
Intended
Social
Impact
Unintended
...
The Experience Canvas
The Lean Canvas
The Lean Canvas
“My main objective with Lean
Canvas was making it as
actionable as possible while
staying entrepreneur-focused”
- Ash Maur...
Test the ‘hypothesis layer’ using
empirical techniques
Problem Solution Unique Value
Proposition
Unfair
Advantage
Customer
Segments
Key Metrics Channels
Cost Structure Revenue S...
How are you going to use it?
Adopting the tool
• At the beginning of your next project
• Get aligned
• As part of your current project or
product devel...
Get a free A0 poster of the Business
Model Canvas from the DiUS coffee cart!
www.businessmodelgeneration.com
www.leanstack...
www.dius.com.au
Pete Cohen
pcohen@dius.com.au
@petecohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen
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Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen

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This session introduces you to the Business Model Canvas: a shared visual language that allows you to use nine basic building blocks to describe and design any business model. Pete shows how the Business Model Canvas is a useful tool for the entire team to achieve goals within the context of an overall vision.

You will walk away knowing how to use the Business Model Canvas to map a business model and how it can be used as a tool to support genuine disruption and incremental innovation. You will also explore Lean Canvas, a variation of the model for entrepreneurs.

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  • A single page view of a business which surfaces the nine main building blocks
  • alexander osterwalder – swiss
    First published in 2009
  • Looks a bit like a light saber when rolled up
    Just a gimmick to get people to come to the talk
  • What I really want to do is to give you a new tool to add to your kit
    I have found that relatively few people have encountered it or used it before, and I consistently find that people get value from it when they do
  • The longer I work in agile teams, the more I value physical information radiators
  • As a consultant you change environments and domains frequently
    Need to be able to add value very quickly, and this relies on having context
  • Slack memo
    “We don’t sell saddles here” on Medium
  • Business model innovation
    Amazon is a great example of this – AWS
    We all have the opportunity to recognise the strengths around us
  • More likely to be read
  • There is a specific order which it needs to be tackled in
  • User satisfaction ratings
    Training to give a bottle of water to passengers
  • Founded in 2009
    Currently valued at 18.2 billion
    Google have bought into it
  • Uber part of the new sharing economy, enabled by real time comms tech
  • Add colour
  • How do we reach them?
  • What is important about the relationship
  • Two sided market
    Need to decide whether to represent drivers as customers or partners
  • Using slack resources is the main value prop for drivers
  • Using slack resources is the main value prop for drivers
  • Using slack resources is the main value prop for drivers
  • New opportunity for UberX
  • How do they reach drivers?
  • What is important to the drivers about the relationship?
  • Revenue streams
  • Key activity of defending the company
  • Kumolus – right side has guided the release planning and strategy
    Left side has guided business planning and operations, empanasis on partnerships
  • Taxi licenses are $20-30K per year in melbourne, or $500k for a perpetual license. In New York they fetch $700k - $1M.
  • The Streisand effect is the phenomenon whereby an attempt to hide, remove, or censor a piece of information has the unintended consequence of publicizing the information more widely, usually facilitated by the Internet.
  • Millers Law 7 +/- 2
    Working memory capacity
    Cognitive numeric limit
  • BMC is more “outside in” – why it is great for consulting
    BMC doesn’t address areas of highest risk
  • Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by Pete Cohen

    1. 1. The Business Model Canvas A light saber for your disruptive tool belt Pete Cohen 17 June 2014
    2. 2. Two business analysts walk into a bar…
    3. 3. Content with no heading
    4. 4. www.businessmodelgeneration.com
    5. 5. Content with no heading
    6. 6. Content with no heading
    7. 7. Agenda for today • Why use it? • Step through the 9 building blocks of the business model canvas • Explore a case study - Uber • Look at some other canvases including the Lean Canvas
    8. 8. Why use the Business Model Canvas?
    9. 9. A great tool for agile practitioners • A visual information radiator • Fosters collaboration • Encourages holistic thinking
    10. 10. A secret weapon for consulting • Build context very quickly
    11. 11. Essential for entrepreneurs “I believe that the life of any startup can be divided into two parts: before product/market fit and after product/market fit.” - Marc Andreessen (founder of Netscape)
    12. 12. Essential for intrapreneurs “...companies …can create massive growth by combining difficult to replicate assets with entrepreneurial behaviors.” “A large company can never innovate faster than the market. But it can innovate better than the market.” - Scott Anthony (Innosight)
    13. 13. Simple but powerful • Lightweight – not a hefty document • Deliberately constrained to avoid too much detail • Accessible and portable
    14. 14. Content with no heading
    15. 15. Content with no heading
    16. 16. Customer Segments • Add text here Who are we creating value for?
    17. 17. Value Proposition • Add text here What value do we deliver? What problem are we solving?
    18. 18. Channels • Add text here How do we reach our customers?
    19. 19. • Add text here Customer Relationships What type of relationship does each of our Customer Segments expect? How costly are they?
    20. 20. • Add text here Revenue Streams What do our customers pay for? How do they pay?
    21. 21. • Add text here Key Resources What key resources do we require to deliver value?
    22. 22. • Add text here Key Activities What key activities are done to deliver value?
    23. 23. • Add text here Key Partners Who are our key partners?
    24. 24. • Add text here Cost Structure What are our key costs?
    25. 25. Content with no heading Product Market
    26. 26. Content with no heading Optimise and accelerate Learn and pivot
    27. 27. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience On demand availability Certainty
    28. 28. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience On demand availability Certainty Social media
    29. 29. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience On demand availability Good service Certainty Social media Trust
    30. 30. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Trust
    31. 31. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty A way to use ‘slack’ resources Trust
    32. 32. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty A way to use ‘slack’ resources Trust
    33. 33. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Regular people with a car who are willing to drive A way to use ‘slack’ resources Trust
    34. 34. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Regular people with a car who are willing to drive A way to use ‘slack’ resources Direct Trust
    35. 35. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Regular people with a car who are willing to drive A way to use ‘slack’ resources Direct No commitment Trust
    36. 36. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Regular people with a car who are willing to drive A way to use ‘slack’ resources Direct No commitment Surge pricing % of fares Trust
    37. 37. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehiclesSocial media On demand availability Good service Certainty Regular people with a car who are willing to drive A way to use ‘slack’ resources Direct No commitment Surge pricing % of fares Defending the company from “anti- capitalist taxi protectionism” Trust
    38. 38. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehicles A way to use ‘slack’ resources Social media On demand availability Direct No commitment Incentives Surge pricing Defending the company from “anti- capitalist taxi protectionism” Software dev Hiring Operations staff Community staff Good serviceDrivers NFL AMEX % of fares Certainty Regular people with a car who are willing to drive Wages National Cat Day Trust
    39. 39. Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Business people Taxi license $$ Convenient transport Individuals/fa milies Vehicle Fuel Maintenanc e Booking service fee License Wages Fares Booking service Driving Drivers
    40. 40. National Cat Day Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Wealthy, young people Exclusive transport at an affordable price Convenience Existing drivers of private transport vehicles A way to use ‘slack’ resources Social media On demand availability Direct No commitment Incentives Surge pricing Defending the company from “anti- capitalist taxi protectionism” Software dev Hiring Operations staff Community staff Good serviceDrivers NFL AMEX % of fares Certainty Regular people with a car who are willing to drive Wages Bad press Trust
    41. 41. Criticisms and shortcomings of the business model canvas?
    42. 42. Criticisms and shortcomings • Where do we capture the other stuff that comes up in conversation? • Competitors • Where is the detail? • Work within the constraints – they are there for a reason
    43. 43. A canvas for every occasion…
    44. 44. Creative Commons Share - copy and redistribute the material in any medium or format. Adapt - remix, transform, and build upon the Material for any purpose, even commercially.
    45. 45. Social Enterprise Canvas Key Resistances Enterprise Structure Opportunity as Hypothesis Intended Social Impact Unintended Consequenc es
    46. 46. The Experience Canvas
    47. 47. The Lean Canvas
    48. 48. The Lean Canvas
    49. 49. “My main objective with Lean Canvas was making it as actionable as possible while staying entrepreneur-focused” - Ash Maurya (Creator of the Lean Canvas)
    50. 50. Test the ‘hypothesis layer’ using empirical techniques
    51. 51. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams
    52. 52. How are you going to use it?
    53. 53. Adopting the tool • At the beginning of your next project • Get aligned • As part of your current project or product development • A great way to bring new team members up to speed
    54. 54. Get a free A0 poster of the Business Model Canvas from the DiUS coffee cart! www.businessmodelgeneration.com www.leanstack.com
    55. 55. www.dius.com.au Pete Cohen pcohen@dius.com.au @petecohen

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