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BUSINESS MODEL GENERATION – THE CANVAS
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THE ‘LEAN’ CANVAS
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WHO ARE OUR MOST IMPORTANT CUSTOMERS?
Two sided:
2 or more interdependent
customers
Ex: Credit Card holders
& merchants
Diversified:
Unrelated
groups
Ex: Amazon
Niche:
Specific
specialized
segments
Ex: car part
manufacturers
Segmented:
Slightly different
problems
Ex: Credit Suisse
Retail Banking
Mass:
One broad
group
Ex: Milk
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WHAT VALUE DO WE PROPOSE?
New Service Cell phones, ethical investment funds.
Performance PC market, light bulbs, energy efficient equipment
Customization Threadless, car market, MYC4
Payment per use RollsRoyce engines, subscription software
Design Swatch, Mini
Brand / Status Rolex, Bentley, Louis Vuitton
Price Ryanair, free email
Cost reduction Salesforce software on the cloud
Risk reduction IT service level guarantees, car 1-yr service guarantee
Accessibility 7Eleven in Denmark, NetJets
Convenience / Usability iPod, Google Search & Mail
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WHICH CHANNELS BEST SUITED TO REACH CUSTOMERS?
Own Channel
Partner Channel
Direct Indirect
Sales force
Web sales
Own stores
Partner stores
Wholesaler
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Awareness Evaluation Purchase Delivery After sales
10
CHANNEL DEVELOPMENT STAGES
Developing
channels takes
time!
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WHAT KIND OF RELATIONSHIPS WITH CUSTOMER ARE
MOST VIABLE?
Personal
assistance
(dedicated
vs not-)
Self-
service
Automated
services
(stimulates
personal
care)
Communities / co-
creation
(peer reviews,
peer-
recommendation)
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HOW MUCH AND HOW ARE YOUR CUSTOMERS GOING
TO PAY?
Asset sale Subscription
Pay for use
Licensing Advertising
Rent / lease / lend Brokerage
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PRICING STRATEGIES
Fixed Menu Pricing
(prices pre-defined based
on certain variables)
Dynamic Pricing
(price based on market
conditions)
• List price
• Product/feature dependent
(upgrade for new features)
• Customer segment dependent
(price discrimination)
• Volume dependent (get 3 for 2)
• Negotiation
• Yield management (plane
seats, hotel booking)
• Real time market (Commodity
markets)
• Auctions (Google and
Facebook Ads)
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KEY RESOURCES
Physical
Assets
Intellectual
asset,
copyright,
code,
knowledge
Relationships,
Trust, Brand
recognition
The team
with their skills
and
motivations
Petty cash
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KEY ACTIVITIES
Production.
Value: quality,
flexibility, lean
(not wasteful),
just in time
Problem solving.
Value: knowledge
management,
continuous
training
Platform.
Value: Match
demand & supply,
security,
performance
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KEY PARTNERSHIPS
Strategic Alliance non-competitors
Coopetition alliance betw. competitors
Joint ventures develop new biz
Buyer / supplier reliable sales / supplies
TYPES
WHY
Acquisition of particular resources or activities (ie, google motorola)
Optimization and economies of scale (Starbucks buys coffee)
Reduction of risk and uncertainty (Touch screen manufacturer)
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COST STRUCTURE
Cost-driven versus Value-driven business: different sensitivity around cost
vs
Fixed costs Variable costs
Economies
of scale
Economies of
scope
Office, factory Labor, energy Bulk purchase is
cheaper
Important concepts:
Synergies between
business lines
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UNTIL END OF SUNDAY
1. Your business canvas – use the lean canvas
a. Conduct research for each field
b. Write down your thoughts for each of the field / boxes in a vertical text
c. Then make the summary of your thoughts on a PowerPoint
2. Read Effectuation Ch 4, 11 and 12
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