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Business Model Canvas    The 9 Building Blocks
The 100 MillionRupiahs question    how do you search for the      right business model?
Business Model Canvas• to describe, challenge, design, and invent  business models more systematically• using a 9 building...
1. Customer Segmentscustomers comprise the heart of any business model
the Customer Segments         building block• defines the different groups of people or  organizations an enterprise aims ...
how to segment customer?•   their needs require and justify a distinct offer•   they are reached through different Distrib...
Types of Customer Segments• Mass market : focus on one large group of  customers with broadly similar needs/problems• Nich...
2. Value Proposition is the reason why customers turn to one           company over another.
the Value Proposition        building block• describes the bundle of products and  services that create value for a specif...
how to check value proposition • what value do we deliver to the customer? • which one of our customer’s problems are we  ...
• Newness               • Performance               • Customization elements to • “Getting the job done” contribute a • De...
3. Channelsare customer touch points that play an important role            in the customer experience
the Channel building block• describes how a company communicates  with and reaches its Customer Segments to  deliver a Val...
how to create & understand          Channels?• through which Channels do our Customer  Segments want to be reached?• how a...
mix of channel types• Partner Channels lead to lower margins, but they  allow an organization to expand its reach and  ben...
4. Customer Relationships  deeply influence the overall customer experience
the Customer Relationships       building block• describes the types of relationships a company  establishes with specific...
how to build relationship with        Customer Segment?• what type of relationship does each of our  Customer Segments exp...
Categories of Customer       Relationships• personal assistance• dedicated personal assistance• self-service• automated se...
5. Revenue StreamsFor what value is each Customer Segment truly                 willing to pay?
the Revenues Streams          building block• represents the cash a company generates from  each Customer Segment (costs m...
two different types of  Revenue Streams• Transaction revenues resulting from  one-time customer payments• Recurring revenu...
how to understand Revenue                 Streams?• For what value are our customers really willing to  pay?• For what do ...
several ways to generate    Revenue Streams         • Asset sale         • Usage fee         • Subscription fees         •...
Pricing Mechanism
6. Key Resourcesthe most important assets required to make a business                    model work
the Key Resources          building block• These resources allow an enterprise to create  and offer a Value Proposition, r...
what is the Key Resources    in your business? • What Key Resources do our Value Propositions   require? • Our Distributio...
The category...• Physical Assets• Intellectual• Human• Financial
7. Key Activitiesthe most important actions a company must take to               operate successfully
the Key Activities            building block• describes the most important things a company  must do to make its business ...
What Key Activities do?• What Key Activities do our Value  Propositions require?• Our Distribution Channels?• Customer Rel...
Category...• Production : designing, making & delivering a  product in substantial qty or superior quality• Problem solvin...
8. Key Partnershipscreate alliances to optimize their business models,        reduce risk, or acquire resources.
the Key Partnerships building block•describes the network of suppliers and partners that make the business model work•Four...
Who & which...• Who are our Key Partners?• Who are our key suppliers?• Which Key Resources are we acquiring  from partners...
3 motivations forcreating partnerships:1. Optimization and economy of scale2. Reduction of risk and uncertainty3. Acquisit...
9. Cost Structurethe most important costs incurred while operating       under a particular business model
the Cost Structure            building block• describes all costs incurred to operate a  business model• Creating and deli...
How to measure costs?• What are the most important costs inherent in  our business model?• Which Key Resources are most ex...
classes of business model Cost           Structures•   Cost Driven (focus on minimizing costs wherever    possible)•   Val...
How they work with it.
How to do it?
Apple iPod/iTunes Business Model
A Lean Canvas
LifeTuned.com
Thank You
Business model canvas building blocks complete
Business model canvas building blocks complete
Business model canvas building blocks complete
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Business model canvas building blocks complete

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  • mass market: FMCG niche market: supplier-buyer relationship segmented: offering from banking diversified: amazon.com sell retail business + cloud computing services (online storage space & on demand server usage) multi-sided: credit card company works with merchants.
  • values may be quantitative (e.g. price, speed of service) or qualitative (e.g. design, customer experience)
  • The trick is to find the right balance between the different types of Channels, to integrate them in a way to create a great customer experience, and to maximize revenues.
  • When the market became saturated , operators switched to focusing on customer retention and increasing average revenue per customer.
  • Each Revenue Stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management.
  • Each Revenue Stream might have different pricing mechanisms. The type of pricing mechanism chosen can make a big difference in terms of revenues generated. There are two main types of pricing mechanism: fixed and dynamic pricing.
  • ASSET SALES: derives from selling ownership rights to a physical product. Amazon.com sells books, music, consumer electronics, and more online. Fiat sells automobiles, which buyers are free to drive, resell, or even destroy. USAGE FEE: telecom operator for minute usage and hotel per night usage SUBSCRIPTION FEES: a gym, web-based games: war-craft, Nokia music LENDING: LICENSING: use patent of tech, or in media industry BROKERAGE FEES: credit card, real estates ADVERTISING: fee for ads a particular product, service, or brand
  • Each Revenue Stream might have different pricing mechanisms. The type of pricing mechanism chosen can make a big difference in terms of revenues generated. There are two main types of pricing mechanism: fixed and dynamic pricing.
  • Different Key Resources are needed depending on the type of business model. A microchip manufacturer requires capital-intensive production facilities, whereas a microchip designer focuses more on human resources.
  • PHYSICAL: physical assets such as manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks. exp: Wal-Mart and Amazon.com INTELLECTUAL: such as brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases
  • Transcript of "Business model canvas building blocks complete"

    1. 1. Business Model Canvas The 9 Building Blocks
    2. 2. The 100 MillionRupiahs question how do you search for the right business model?
    3. 3. Business Model Canvas• to describe, challenge, design, and invent business models more systematically• using a 9 building blocks method
    4. 4. 1. Customer Segmentscustomers comprise the heart of any business model
    5. 5. the Customer Segments building block• defines the different groups of people or organizations an enterprise aims to reach & serve.• targeting profitable customers
    6. 6. how to segment customer?• 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 profitabilities• they are willing to pay for different aspects of the offer
    7. 7. Types of Customer Segments• Mass market : focus on one large group of customers with broadly similar needs/problems• Niche market : specific requirements• Segmented : slightly different needs/problems• Diversified : very different needs/problems• Multi-sided platforms (or multi-sided markets) : serve 2 or more interdependent customer segments
    8. 8. 2. Value Proposition is the reason why customers turn to one company over another.
    9. 9. the Value Proposition building block• describes the bundle of products and services that create value for a specific Customer Segment.• it solves a customer problem or satisfies a customer needs.
    10. 10. how to check value proposition • 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 & services are we offering to each Customer Segment?
    11. 11. • Newness • Performance • Customization elements to • “Getting the job done” contribute a • Design customer • Brand / Statusvalue creation • Price • Cost or Risk Reduction • Accessibility • Convenience / Usability
    12. 12. 3. Channelsare customer touch points that play an important role in the customer experience
    13. 13. the Channel building block• describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition• communication, distribution, and sales channels comprise a company’s interface with customers.
    14. 14. how to create & understand Channels?• 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?
    15. 15. mix of channel types• Partner Channels lead to lower margins, but they allow an organization to expand its reach and benefit from partner strengths.• Owned Channels and particularly direct ones have higher margins, but can be costly to put in place and to operate.
    16. 16. 4. Customer Relationships deeply influence the overall customer experience
    17. 17. the Customer Relationships building block• describes the types of relationships a company establishes with specific Customer Segments• relationship can range from personal to automated• driven by motivations : customer acquisition, customer retention, and boosting sales (upselling)
    18. 18. how to build relationship with Customer Segment?• what type of relationship does each of our Customer 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?
    19. 19. Categories of Customer Relationships• personal assistance• dedicated personal assistance• self-service• automated services• communities• co-creation
    20. 20. 5. Revenue StreamsFor what value is each Customer Segment truly willing to pay?
    21. 21. the Revenues Streams building block• represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings)• the firm generate one or more Revenue Streams from each Customer Segment.• Each Revenue Stream may have different pricing mechanisms.
    22. 22. two different types of Revenue Streams• Transaction revenues resulting from one-time customer payments• Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post- purchase customer support
    23. 23. how to understand Revenue Streams?• 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?
    24. 24. several ways to generate Revenue Streams • Asset sale • Usage fee • Subscription fees • Lending/Renting/Leasing • Licensing • Brokerage fees • Advertising
    25. 25. Pricing Mechanism
    26. 26. 6. Key Resourcesthe most important assets required to make a business model work
    27. 27. the Key Resources building block• These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn Revenues• Key resources can be physical, financial, intellectual, or human.• Key resources can be owned or leased by the company or acquired from key partners.
    28. 28. what is the Key Resources in your business? • What Key Resources do our Value Propositions require? • Our Distribution Channels? • Customer Relationships? • Revenue Streams?
    29. 29. The category...• Physical Assets• Intellectual• Human• Financial
    30. 30. 7. Key Activitiesthe most important actions a company must take to operate successfully
    31. 31. the Key Activities building block• describes the most important things a company must do to make its business model work• Key Resources required to create and offer a Value Proposition, reach markets, maintain Customer Relationships, and earn Revenues.• Key Activities differ depending on business model type
    32. 32. What Key Activities do?• What Key Activities do our Value Propositions require?• Our Distribution Channels?• Customer Relationships?• Revenue streams?
    33. 33. Category...• Production : designing, making & delivering a product in substantial qty or superior quality• Problem solving : coming up with new solutions to individual customer problems.• Platform/network : dominated by platform or network-related Key activities (networks, software, brands, etc)
    34. 34. 8. Key Partnershipscreate alliances to optimize their business models, reduce risk, or acquire resources.
    35. 35. the Key Partnerships building block•describes the network of suppliers and partners that make the business model work•Four different types of partnerships:1. Strategic alliances between non-competitors2. Coopetition: strategic partnerships between competitors3. Joint ventures to develop new businesses4. Buyer-supplier relationships to assure reliable supplies
    36. 36. Who & which...• Who are our Key Partners?• Who are our key suppliers?• Which Key Resources are we acquiring from partners?• Which Key Activities do partners perform?
    37. 37. 3 motivations forcreating partnerships:1. Optimization and economy of scale2. Reduction of risk and uncertainty3. Acquisition of particular resources and activities
    38. 38. 9. Cost Structurethe most important costs incurred while operating under a particular business model
    39. 39. the Cost Structure building block• describes all costs incurred to operate a business model• Creating and delivering value, maintaining Customer Relationships, and generating revenue all incur costs.• Such costs can be calculated relatively easily after defining Key Resources, Key Activities, and Key Partnerships.
    40. 40. How to measure costs?• What are the most important costs inherent in our business model?• Which Key Resources are most expensive?• Which Key Activities are most expensive?• Two broad classes of business model Cost Structures: cost-driven and value-driven (many business models fall in between these two extremes)
    41. 41. classes of business model Cost Structures• Cost Driven (focus on minimizing costs wherever possible)• Value Driven (instead focus on value creation): 1. Fixed Costs (Costs that remain the same despite the volume of goods or services produced) 2. Variable Costs (Costs that vary proportionally with the volume of goods or services produced) 3. Economies of Scale (Cost advantages that a business enjoys as its output expands.) 4. Economies of Scope (Cost advantages that a business enjoys due to a larger scope of operations.)
    42. 42. How they work with it.
    43. 43. How to do it?
    44. 44. Apple iPod/iTunes Business Model
    45. 45. A Lean Canvas
    46. 46. LifeTuned.com
    47. 47. Thank You
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