Business Model Canvas session @ STARTup Live Vienna #5Presentation Transcript
Business Model(Ob-)Ses sion
What we are talking abouttoday…
What we are NOT talkingabout today…
What else is important toknow?
Opinions not facts! ? „Some other guys“
What is a Business Model?
Environment / Market ? ? Start-up ?
A business model describesthe rationale of how anorganization creates,delivers, and captures value
Value PriceWhat the What thecustomer gets customer pays* *or someone elseWillingness to „buy“ Ability to „pay“
How does your business make money?
Why you should personally care!
Let‘s get started…
Right idea, right hands, right time = Luck
F. O. C. U. S.„If something is everything, it is nothing“ If you try to do everything, you will probably end up achieving nothing
Back to business (model)
2 General ApproachesDesign vs. Emerging
? Université deStrategy Lausanne,Consultant Business Faculty „Some other guys“ Alexander Prof. Yves Pigneur Osterwalder Co-created by a crowd of 470 practitioners from 45 countries Source: www.businessmodelgeneration.com
It is a visual framework preformatted with 9 building blocks Source: www.businessmodelgeneration.com
The 9 Blocks
Customer Segment (CS)Defines the different groups of people ororganizations an enterprise aims to reachand serve Key Question: For whom are we creating value? Source: www.businessmodelgeneration.com
The cinema is little more than afad. It’s canned drama. Whataudiences really want to see isflesh and blood on the stage.” – Charlie Chaplin
Value Propositions (VP) Describes the bundle of products and services that create value for a specific Customer SegmentKey Question: What value do we deliver to the customer? Source: www.businessmodelgeneration.com
Channels (CH)Describes how a company communicateswith and reaches its Customer Segments todeliver a Value PropositionKey Question: Through which Channels do our Customer Segments want to be reached? Source: www.businessmodelgeneration.com
C.A.C. L.V.C. 1 : ~4-6 X : 1
Customer Relationships (CR) Describes the types of relationships a company establishes with specific Customer Segments Key Question: What type of relationship does each of ourCustomer Segments expect us to establish & maintain with them? Source: www.businessmodelgeneration.com
Revenue Streams (RS) Represents the cash a company generates from each Customer Segment (revenues – costs = earnings)Key Question: For what value are our customers really willing to pay? Source: www.businessmodelgeneration.com
Key Resources (KR) Describes the most important assets required to make a business model workKey Question: What Key Resources do our Value Propositions require? Source: www.businessmodelgeneration.com
Key Activities (KA) Describes the most important things a company must do to make its business model workKey Question: What Key Activities do our Value Propositions require? Source: www.businessmodelgeneration.com
Key Partnerships (KP) Describes the network of suppliers and partners that make the business model workKey Question(s): Who are our Key Partners? Who are our key suppliers? Source: www.businessmodelgeneration.com
Cost Structure(CS) Describes all costs incurred to operate a business modelKey Question: What are the most important costs inherent in our business model? Source: www.businessmodelgeneration.com
It wanted to be the „next Facebook“, before Facebook even existed
“90% of the time consumer Internet companies fail for 1reason: Inability to acquire and retain substantial numberof users. In isolation the founders can articulate areasonable value proposition, but in the real world cuttingthrough the clutter of the 3,000 advertisements per day thatthe average American is bombarded by is extraordinarilydifficult. There are only 24 hours in a day and most arealready claimed by family obligations, work, sleep andexisting entertainment options; even if you get a usersattention your new product needs to be so compelling thathe is willing to forego something else he is already investedin.” - Keith Rabois (worked at PayPal, LinkedIn, Slideshare and others)