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The Business Model
Canvas
Dr Tendayi Viki

Follow Me: @tendayiviki
Startups are NOT smaller
versions of big companies!
(Steve Blank & Bob Dorf, 2012)
A Startup is A Thesis
 A Path for Searching:
• For a sustainable and profitable
business model.
The Hypothesis Driven Startup
 A Startup is a Research Project:
•

We should not be making business plans,
we should make research proposals.
Eric Ries (2011)
The Lean Startup
http://lean.st
Ash Maurya (2012)
Running Lean
http://www.runningleanhq.com/
Ash Maurya (2012)
Running Lean
http://www.spark59.com/
CASE STUDY
DISCUSSION
What is an MVP?
With MVPs, how can you
protect your brand?
What is the difference between:
build-it-and-they-will-come
the waterfall method
the just-do-it approach
What is product/market fit?
What is scaling a business?
What is the problem with
premature scaling?
The Business Model Canvas
Document Your Plan A
Ash Maurya (2012)
Running Lean
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
Customer Segment
 This block defines the different groups of
people or organizations that a company aims
to reach and ser...
Value Propositions
 The value propositions block describes the
product/service; and how it creates value for
your custome...
Channels
 The channels block describes how a company
reaches its target segments to deliver the
value proposition.

Oster...
Customer Relationships
 The customer relationships block describes
the types of relationships a company
establishes with ...
Revenue Streams
 The revenue streams block describes how
the company generates revenues from its
customer segments.
•

As...
Key Resources
 The key resources block describes the most
important assets required to make your
business model work.
•

...
Key Activities
 The key activities block describes the most
important things a company must do to make
its business model...
Key Partnerships
 The key partnerships block describes the
network of suppliers and partners that make
your business mode...
Cost Structure
 The cost structure describes all the costs
incurred to operate a business model.
•

Cost Driven

•

Value...
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
Your Product is NOT the Product
 It is important to realise that a product or service idea is not
sufficient for success....
What is the Difference?
BUSINESS MODEL PATTERNS
UNBUNDLING
Patrick van der Pijl
CEO | Business Models Inc.
http://www.businessmodelsinc.com
INFRASTRUCTURE MANAGEMENT

CUSTOMER RELATIONSHIPS

CONTENT PROVIDER
THE LONG TAIL
MULTISIDED PLATFORMS
FREE AS A BUSINESS MODEL
CLASS ACTIVITY
What is the business model
for Nespresso?
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
What is the business model
for Apple IPod?
Osterwalder & Pigneur (2010)
http://www.businessmodelgeneration.com/
What is the business model
for Amazon?
Thank You
&
See You Next Week
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
The Business Model Canvas SP640
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The Business Model Canvas SP640

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The second class of the SP640 enterprise and innovation course delivered at the University of Kent for final year students. In this class student get introduced to business models and the business model canvas.

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Transcript of "The Business Model Canvas SP640"

  1. 1. The Business Model Canvas Dr Tendayi Viki Follow Me: @tendayiviki
  2. 2. Startups are NOT smaller versions of big companies! (Steve Blank & Bob Dorf, 2012)
  3. 3. A Startup is A Thesis
  4. 4.  A Path for Searching: • For a sustainable and profitable business model.
  5. 5. The Hypothesis Driven Startup
  6. 6.  A Startup is a Research Project: • We should not be making business plans, we should make research proposals.
  7. 7. Eric Ries (2011) The Lean Startup http://lean.st
  8. 8. Ash Maurya (2012) Running Lean http://www.runningleanhq.com/
  9. 9. Ash Maurya (2012) Running Lean http://www.spark59.com/
  10. 10. CASE STUDY DISCUSSION
  11. 11. What is an MVP?
  12. 12. With MVPs, how can you protect your brand?
  13. 13. What is the difference between: build-it-and-they-will-come the waterfall method the just-do-it approach
  14. 14. What is product/market fit?
  15. 15. What is scaling a business?
  16. 16. What is the problem with premature scaling?
  17. 17. The Business Model Canvas Document Your Plan A
  18. 18. Ash Maurya (2012) Running Lean
  19. 19. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  20. 20. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  21. 21. Customer Segment  This block defines the different groups of people or organizations that a company aims to reach and serve. • Mass Market • Niche Market • Segmented Market • Diversified Market • Multisided Market Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  22. 22. Value Propositions  The value propositions block describes the product/service; and how it creates value for your customer segments.  Performance  Price  Design  Brand/Status  Convenience/Usability  Risk Reduction Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  23. 23. Channels  The channels block describes how a company reaches its target segments to deliver the value proposition. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  24. 24. Customer Relationships  The customer relationships block describes the types of relationships a company establishes with their customers. • Personal Assistance • Dedicated Personal Assistance • Self Service • Automated Service • Communities • Co-creation Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  25. 25. Revenue Streams  The revenue streams block describes how the company generates revenues from its customer segments. • Asset Sale • Usage Fee • Subscription Fees • Lending/Renting/Leasing • Licensing • Brokerage Fees • Advertising Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  26. 26. Key Resources  The key resources block describes the most important assets required to make your business model work. • Physical • Intellectual • Human • Financial Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  27. 27. Key Activities  The key activities block describes the most important things a company must do to make its business model work. • Production • Problem Solving • Platform/Network Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  28. 28. Key Partnerships  The key partnerships block describes the network of suppliers and partners that make your business model work. • Optimization and economies of scale • Reduction of risk and uncertainty • Acquisition of resources and activities Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  29. 29. Cost Structure  The cost structure describes all the costs incurred to operate a business model. • Cost Driven • Value Driven • Fixed and Variable Costs • Economies of Scale and Scope Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  30. 30. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  31. 31. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  32. 32. Your Product is NOT the Product  It is important to realise that a product or service idea is not sufficient for success.  You could have a good idea, but if you do not have a good business model to support it, then your business will fail.  It is not enough to just have a good product, it must be delivered to customers in a manner that is sustainably profitable.  A lot entrepreneurs focus too much on just the product.  But the same amount of effort needs to be put into developing the business model.  Indeed, business model innovation by itself can be game changing.
  33. 33. What is the Difference?
  34. 34. BUSINESS MODEL PATTERNS
  35. 35. UNBUNDLING
  36. 36. Patrick van der Pijl CEO | Business Models Inc. http://www.businessmodelsinc.com
  37. 37. INFRASTRUCTURE MANAGEMENT CUSTOMER RELATIONSHIPS CONTENT PROVIDER
  38. 38. THE LONG TAIL
  39. 39. MULTISIDED PLATFORMS
  40. 40. FREE AS A BUSINESS MODEL
  41. 41. CLASS ACTIVITY
  42. 42. What is the business model for Nespresso?
  43. 43. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  44. 44. What is the business model for Apple IPod?
  45. 45. Osterwalder & Pigneur (2010) http://www.businessmodelgeneration.com/
  46. 46. What is the business model for Amazon?
  47. 47. Thank You & See You Next Week
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