The business model canvas

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  • Difference between users & customersSpecial category = early adopters
  • http://www.ashmaurya.com/2011/06/your-product-is-not-the-product/
  • Lean canvas tips & tricks1. Problem & customer segment- List top 1-3 problems for customer segment(s)- List existing alternatives- Identify other user roles- Identify early adopters (not mainstream customers)2.Unique value proposition (UVP)- Be different, target early adopters, focus on finished story benefits (not features but end result customer wants), what - who - why3. Solution- MVP, top features to tackle each problem4. Channels- Free / paid, inbound / outbound, direct / automated (first sell manually direct to learn, then automate), direct / indirect (first sell yourself before handing over to others), retention before referral- Start with direct outbound channels to interview, think about scalable channels5. Revenue stream- Think in 3 - 5 year forecasts- Bottom-up approach- Charge early-on for your MVP (price is part of the product, defines your customers, better form of validation)- Price against identified existing alternatives6. Cost structure- Operational costs bottom-up (fixed & variable)- Calculate break-even point + required time / effort / money to get there7. Key Metrics - Pirate Metrics- Acquisition - how do users find you? (turn lead into prospect)- Activation - do users have a great first experience?- Retention - do users come back?- Revenue - how do you make money?- Referral - do users tell others?8. Unfair advantage- e.g., insider info, knowhow, dream team, personal authority, large network effect, community, existing customers, SEO ranking
  • The business model canvas

    1. 1. The business modelcanvas
    2. 2. Source: Alex OsterwalderCustomer segmentsPeople or organizations an enterprise aims toreach.
    3. 3. For whom are we creating value?Who are our most Important customers?Source: Alex OsterwalderCustomer segments
    4. 4. Customer segmentsThey represent separate segments if Their needs require and justify a distinct offer They are reached through different distributionchannels They require different types of relationship They have substantially different profit abilities They are willing to pay for different aspects of theofferWho are Ikea’s customers?To whom is Ikea selling its products?
    5. 5. Bundle of products and services that create valuefor a specific Customer SegmentValue propositionSource: Alex Osterwalder
    6. 6. Value propositionWhat value do we deliver to the customers?Which problem are we helping to solve?Which customer needs are e satisfying?Source: Alex Osterwalder
    7. 7. Value propositionCustomer value creation Getting the job done Performance Customization Design Brand PriceIkea?Source: Alex Osterwalder
    8. 8. The way a company communicates with and reach itscustomers segments to deliver a value propositionSource: Alex OsterwalderChannels
    9. 9. Source: Alex OsterwalderChannelsHow do our Customers want to be reached?Through which channels are we reaching them now?How are we integrating them with customer routines?
    10. 10. Channels Raising awareness among customers aboutcompany’s products and services Delivering a Value proposition to customers Providing post-purchase customer supportIkea?
    11. 11. Describes the types of relationships a companyestablishes with a specific Customer Segment.Source: Alex OsterwalderCustomer relationships
    12. 12. Source: Alex OsterwalderCustomer relationshipsWhat type of relationship does each of ourcostumer segments expect us to establish andmaintain with them?
    13. 13. Source: Alex OsterwalderCustomer relationshipsDrivers• Customer acquisition• Customer retention• Boosting sales (upselling)Ikea?
    14. 14. The cash a company generates from each customerSegmentSource: Alex OsterwalderRevenue streams
    15. 15. For what value are our customers really willing to pay?How much does each Revenue Stream contribute tooverall revenues?Source: Alex OsterwalderRevenue streams
    16. 16. Revenue StreamsThe different types of revenue streams Transaction revenues resulting from one-timecustomer payment Recurring revenues resulting from ongoingpayments to either deliver a value proposition tocustomers or provide post-purchase customersupportIkea?
    17. 17. The most important assets required to make abusiness model work.Source: Alex OsterwalderKey resources
    18. 18. What Key Resources do our Value Proposition require?Our Distribution Channels? Customer Relationship?Revenue Streams?Source: Alex OsterwalderKey resources
    19. 19. Source: Alex OsterwalderKey resourcesType of resources• Physical• Intellectual• Human• Financial Ikea?
    20. 20. The most important things a company must doto make its business model workSource: Alex OsterwalderKey activities
    21. 21. Source: Alex OsterwalderKey activitiesWhat Key Activities do our Value Proposition require?Our Distribution Channels? Customer Relationship?Revenue Streams?
    22. 22. Key activitiesSome categories Production Marketing Problem solving NetworkIkea?
    23. 23. Describes the network of suppliers and partners that makethe business model workSource: Alex OsterwalderKey partners
    24. 24. Who are our Key Partners/Suppliers? Which Keyresources/activities are we acquiring from partners?Source: Alex OsterwalderKey partners
    25. 25. Key partnersMotivation for creating partnerships Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources and activitiesIkea?
    26. 26. All costs incurred to operate a business modelSource: Alex OsterwalderCost structure
    27. 27. Source: Alex OsterwalderCost structureWhat are the most important costs in our business model?Which Key Resources/Activities are most expensive?Ikea?
    28. 28. Source: Alex Osterwalder
    29. 29. Source: Alex Osterwalder
    30. 30.  Developed by Ash Maurya in2012 Documented in “Running Lean” Adaptation of BM canvas Focus on learning More actionable Designed for Web startups
    31. 31. Brainstorm possible models& prioritize1. Customer Pain Level (Problem/VP)2. Ease of Reach (Channel)3. Price/Gross Margin (Revenue Stream/CostStructure)4. Market Size (Customer Segment)5. Technical feasibility (solution)Source: Ash Maurya
    32. 32. … using lean startup practicesSource: Ash MauryaIdentify the riskiest parts of the model &systematically test them
    33. 33. Case study
    34. 34. Questions?

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