1. Gyles Denn - A2F Business Model Canvas

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  • Fixed – salaries, property
    Variable – proportional to production etc
    Scale – bulk orders
    Scope – same marketing and distribution for multiple products
  • 10 mins to pitch
    15 minutes to challenge and pivot

    25mins each in a group of three
  • 1. Gyles Denn - A2F Business Model Canvas

    1. 1. Connecting people, creating opportunities Business Model Canvas Gyles Denn
    2. 2. Connecting people, creating opportunities
    3. 3. Connecting people, creating opportunities describe, design, challenge, invent, and pivot your business model.
    4. 4. Connecting people, creating opportunities
    5. 5. Connecting people, creating opportunities What is a Business Model? A business model describes the rational of how a business creates, delivers and captures value.
    6. 6. Connecting people, creating opportunities http://www.youtube.com/watch?v=QoAOzMTLP5s
    7. 7. Connecting people, creating opportunities Customer segments
    8. 8. Connecting people, creating opportunities For whom are we creating value?
    9. 9. Connecting people, creating opportunities • Their needs require and justify a distinct offer • They are reached through different distribution channels • They require different types of relationships • They have substantially different profitabilitys • They are willing to pay for different aspects of the offer Customer groups represent separate segments if:
    10. 10. Connecting people, creating opportunities Value proposition
    11. 11. Connecting people, creating opportunities A Value Proposition creates value for a Customer Segment through a distinct mix of elements tailored to that segment’s needs. Values may be quantitative (e.g. price, speed of service) or qualitative (e.g. design, customer experience).  Newness  Performance  Customisation  Getting the job done  Design  Brand status  Cost reduction  Price  Risk reduction  Accessibility  Convenience and usability
    12. 12. Connecting people, creating opportunities  What value do we deliver to the customer?  Which one of our customer’s problems are we helping to solve?  Which customer needs are we satisfying?  What bundles of products and services are we offering to each Customer Segment?
    13. 13. Connecting people, creating opportunities Channels
    14. 14. Connecting people, creating opportunities How a company communicates with and reaches its Customer Segments to deliver a Value Proposition • The companies interface with customers. • Touch points that play an important role in the customer experience.
    15. 15. Connecting people, creating opportunities a company’s interface with customers. Channels are customer touch points that play an important role in the customer experience. They serve several functions, including: • Raising awareness among customers about a company’s products and services • Helping customers evaluate a company’s Value Proposition • Allowing customers to purchase specific products and services • Delivering a Value Proposition to customers • Providing post-purchase customer support
    16. 16. Connecting people, creating opportunities  Through which Channels do our Customer Segments want to be reached?  How are we reaching them now?  How are our Channels integrated?  Which ones work best?  Which ones are most cost-efficient?  How are we integrating them with customer routines?
    17. 17. Connecting people, creating opportunities Customer relationship
    18. 18. Connecting people, creating opportunities The relationships a company establishes with specific Customer Segments  A company needs to understand the type of relationship it wants to establish with each Customer Segment.  Relationships can range from personal to automated.  Customer relationships will be driven by one of three motivations: • Customer acquisition • Customer retention • Boosting sales (upselling)
    19. 19. Connecting people, creating opportunities  What type of relationship does each of our Customer want  Segments expect us to establish and maintain with them? Which ones have we established?  How costly are they?  How are they integrated with the rest of our business model? • Personal assistance • Dedicated personal assistance • Self service • Automated services • Communities (on-line etc) • Co-creation (write reviews, co design, create content)
    20. 20. Connecting people, creating opportunities Revenue streams
    21. 21. Connecting people, creating opportunities The cash generates from each Customer Segment Two different types of 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
    22. 22. Connecting people, creating opportunities  For what value are our customers really willing to pay?  For what do they currently pay?  How are they currently paying?  How would they prefer to pay?  How much does each Revenue Stream contribute to overall revenues? Several ways to generate revenue streams: • Asset sale • Usage fee • Subscription fee • Lending/renting/leasing • Licensing • Brokerage fee • Advertising
    23. 23. Connecting people, creating opportunities Each Revenue Stream might have different pricing mechanisms. There are two main types of pricing mechanism: fixed and dynamic • List price • Negotiations • Price per feature • Yield management (hotel rooms, flight seats) • Customer segment (NHS discount, trade prices) • Real time market • Volume dependant • Auction price
    24. 24. Connecting people, creating opportunities Key resources
    25. 25. Connecting people, creating opportunities Key Resources are the most important assets required to make a business model work
    26. 26. Connecting people, creating opportunities  What Key Resources do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams? Key Resources can be categorised as: • Physical • Intellectual • Human • Financial
    27. 27. Connecting people, creating opportunities Key activities
    28. 28. Connecting people, creating opportunities Key Activities describe the most important things a company must do to make its business model work
    29. 29. Connecting people, creating opportunities  What Key Activities do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams?
    30. 30. Connecting people, creating opportunities Key partnerships
    31. 31. Connecting people, creating opportunities Key Partnerships describe the network of suppliers and partners that make the business model work
    32. 32. Connecting people, creating opportunities Companies create alliances to optimise their business models, reduce risk, or acquire resources. Four different types of partnerships: 1. Strategic alliances between non-competitors 2. Co-opetition: strategic partnerships between competitors 3. Joint ventures to develop new businesses 4. Buyer-supplier relationships to assure reliable supplies
    33. 33. Connecting people, creating opportunities  Who are our Key Partners?  Who are our key suppliers?  Which Key Resources are we acquiring from partners?  Which Key Activities do partners perform?
    34. 34. Connecting people, creating opportunities Cost structure
    35. 35. Connecting people, creating opportunities The Cost Structure describes all costs incurred to operate a business model
    36. 36. Connecting people, creating opportunities  What are the most important costs inherent in our business model?  Which Key Resources are most expensive?  Which Key Activities are most expensive?
    37. 37. Connecting people, creating opportunities Cost Structures characteristics: Fixed costs Variable costs Economies of scale Economies of scope Two broad classes of business model Cost Structures: • cost-driven and • value-driven • (many business models fall in between these two extremes):
    38. 38. Connecting people, creating opportunities
    39. 39. Connecting people, creating opportunities
    40. 40. Connecting people, creating opportunities Contact us to find out more: Phone: 0161 359 3050 Email: info@businessgrowthhub.com www.businessgrowthhub.com @bizgrowthhub Business Growth Hub +Businessgrowthhub

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