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Business model generation canvas By Manpreet singh digital
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Business model generation canvas By Manpreet singh digital


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A business model has 5 parts …

A business model has 5 parts

this presentation is about the canvas part of the business model generation By Manpreet singh digital

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  • 1. Written by : Alexander Osterwalder & Yves Pigneur Presented by : Manpreet
  • 2. Are you an entrepreneurial spirit? Are you constantly thinking about how to create value and build new businesses, or how to improve or transform your organization? Are you trying to find innovative ways of doing business to replace old, outdated ones?
  • 3. Canvas
  • 4. The Business Model Canvas : A shared language for Describing, visualizing, assessing, and Changing business models • The 9 Building Blocks • The Business model canvas template
  • 5. The 9 Building Blocks
  • 6. 1. Customer Segments The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve. There are different types of Customer Segments. 1. Mass Market 2. Niche Market 3. Segmented bank 4. Diversified amazon 5. Multi sided credit card, news paper
  • 7. A Customer
  • 8. 2. Value Propositions The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment
  • 9. Customer segment & Value proposition
  • 10. The Value Proposition is an aggregation, or bundle, of benefits that a company offers customers. Values may be Quantitative (e.g. price, speed of service) Qualitative (e.g. design, customer experience). Following elements can contribute to customer value creation 1. Newness 2. Performance 3. Customization 4. Getting the job done 5. Design 6. Brand/Status 7. Price 8. Cost reduction 9. Risk reduction, 10. Risk reduction, 11. Accessibility, 12. Convenience
  • 11. 3. Channels The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition Channels serve several functions, including: • Raising awareness • Evaluate a company's Value Proposition • To purchase specific products and services • Delivering a Value Proposition to customers • Post-purchase support
  • 12. Channels have five distinct phases. Each channel can cover some or all of these phases Channel types Channel Phases Direct Own Sales Force 1. Awareness Web sales Indirect Partners Own Stores 2. Evaluation 3. Purchase 4. Delivery Partner stores Wholesaler 5. After sales
  • 13. 4. Customer Relationships The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments Customer relationships may be driven by the following motivations: • Customer acquisition • Customer retention • Boosting sales (up selling) Types of Customer Relationships 1. 2. 3. 4. 5. 6. Personal Assistance Dedicated personal assistance Self service Automated Services Communities Co-creation (banks) (Online shopping) (Customization online) (forums) (Duster clinic)
  • 14. 5. Revenue Streams The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings) Two types of Revenue Stream 1. One time customer payments 2. Recurring Payments
  • 15. Ways to generate Revenue 1. 2. 3. 4. 5. 6. 7. Asset sale Usage fee Subscription fees Lending/renting/leasing Licensing Brokerage fees Advertising Pricing Mechanisms 1. Fixed Menu pricing 2. Dynamic pricing (hotel room) (gym, nokia music) (zipcar) (Movies) (Real estate) (pepsi IPL)
  • 16. 6.Key Resources The Key Resources Building Block describes the most important assets required to make a business model work Depend upon the type of business model Key resources can be categorized as follows: 1. Physical (buildings) 2. Intellectual (brands, Patents) 3. Human 4. Financial : to carry on operations
  • 17. Key Activities The Key Activities Building Block describes the most important things a company must do to make its business model work Key activities can be categorized as follows: 1. Production 2. Problem solving 3. Platform/network
  • 18. 8.Key Partnerships The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work We can distinguish between four different types of partnerships: 1. Strategic alliances between non-competitors 2. Coopetition : strategic partnerships between competitors 3. Joint ventures to develop new businesses 4. Buyer-supplier relationships to assure reliable supplies Three Motivations for creating Partnerships 1. Optimization & economy of scale (lays, coke) 2. Reduction of risk & uncertainty (Blue ray) 3. Acquisition of particular resources (micromax) & activities
  • 19. 9. Cost Structure The Cost Structure describes all costs incurred to operate a business model Two types of cost structures 1. Cost driven 2. Value driven Characteristics of cost structure 1. Fixed costs 2. Variable costs 3. Economies of scale 4. Economies of scope
  • 20. Brain logic Left Emotion Right
  • 21. Efficiency Value
  • 22. Suppliers Competitors Coca cola Joint venture