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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
  • Transcript

    • 1. Connecting people, creating opportunities Business Model Canvas Gyles Denn
    • 2. Connecting people, creating opportunities
    • 3. Connecting people, creating opportunities describe, design, challenge, invent, and pivot your business model.
    • 4. Connecting people, creating opportunities
    • 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. Connecting people, creating opportunities http://www.youtube.com/watch?v=QoAOzMTLP5s
    • 7. Connecting people, creating opportunities Customer segments
    • 8. Connecting people, creating opportunities For whom are we creating value?
    • 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. Connecting people, creating opportunities Value proposition
    • 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. 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. Connecting people, creating opportunities Channels
    • 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. 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. 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. Connecting people, creating opportunities Customer relationship
    • 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. 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. Connecting people, creating opportunities Revenue streams
    • 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. 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. 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. Connecting people, creating opportunities Key resources
    • 25. Connecting people, creating opportunities Key Resources are the most important assets required to make a business model work
    • 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. Connecting people, creating opportunities Key activities
    • 28. Connecting people, creating opportunities Key Activities describe the most important things a company must do to make its business model work
    • 29. Connecting people, creating opportunities  What Key Activities do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams?
    • 30. Connecting people, creating opportunities Key partnerships
    • 31. Connecting people, creating opportunities Key Partnerships describe the network of suppliers and partners that make the business model work
    • 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. 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. Connecting people, creating opportunities Cost structure
    • 35. Connecting people, creating opportunities The Cost Structure describes all costs incurred to operate a business model
    • 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. 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. Connecting people, creating opportunities
    • 39. Connecting people, creating opportunities
    • 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