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Updated Business Model Canvas 23 May 2016

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Introduction to the Business Model Canvas including a short case study.

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Updated Business Model Canvas 23 May 2016

  1. 1. Welcome An Introduction to Business Model Canvas Catherine Duggan Monday 23 May 2016
  2. 2. About Me
  3. 3. Aim Aim: • To introduce the Business Model Canvas Tool Objectives: 1. Define a Business Model 2. Show a real life example 3. Explore the 9 Building Blocks of the Business Model Canvas
  4. 4. Business Model Definition A business model describes the thinking behind how an organisation: • Creates • Delivers • Captures value
  5. 5. Future based: • Predictions • Estimations • Timings Traditional Business Plan
  6. 6. Dynamic tool for: • Describing • Analyzing • Designing A Business Model Source: Business Model Generation created by Alexander Osterwalder http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf Video: Business Model Canvas in 5 minutes with example company Made online designer furniture company https://www.youtube.com/watch?v=_4MHqyf4Vw0 Business Model Canvas
  7. 7. Business Model Canvas Strategic business planning tool with 9 Building Blocks 1. Value Proposition 2. Customer Segments 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partnerships 9. Cost Structure
  8. 8. 1. Value Proposition Tries to solve customer problem & satisfy their needs with value propositions. • What value do we deliver to the customer? • Which one of our customer’s problems are we helping to solve? • What bundles of products & services are we offering to each Customer Segment? • Which customer needs are we satisfying?
  9. 9. 1. Value Proposition v v
  10. 10. 2. Customer Segments For whom are we creating value? Who are our most important customers? • Mass Market • Niche Market • Segmented
  11. 11. 2. Customer Segments Reader Advertiser
  12. 12. 3. Channels Value propositions are delivered to customers through communication, distribution, and sales channels. • 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?
  13. 13. 3. Channels Phases Channel Phases 1. Awareness: How to raise awareness about our company’s products & services? 2. Evaluations: How to help customers evaluate our organisation's Value Proposition? 3. Purchase: How to allow customers to purchase specific products and services? 4. Delivery: How to deliver a Value Proposition to customers? 5. After sales: How to provide post-purchase customer support?
  14. 14. 4. Customer Relationships Customer relationships are established & maintained with each Customer Segment. • What type of relationship does each of our Customer Segments expect us to establish & maintain with them? • Which ones have we established? • How are they integrated with the rest of our business model? • How costly are they?
  15. 15. Customer Relationships v v
  16. 16. 5. Revenue Streams A result from value propositions successfully offered to customers. • 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?
  17. 17. 5. Revenue Streams Types • Subscription Fees • Lending/Renting/Leasing • Licensing • Brokerage fees • Advertising
  18. 18. 5. Revenue Streams
  19. 19. 6. Key Resources These are the assets required to provide • Distribution Channels • Customer Relationships Types  Physical  Intellectual (brand patents, copyrights, data)  Human  Financial
  20. 20. 6. Key Resources
  21. 21. 7. Key Activities What Key Activities do Value Propositions require? • Distribution Channels? • Customer Relationships? • Revenue Streams? Categories • Production • Problem Solving • Platform/Network
  22. 22. Some activities are outsourced & some resources are acquired outside • Who are our Key Partners? • Who are our Key Suppliers? • Which Key Resources are we acquiring from partners? • Which Key Activities do partners perform? Motivation  Optimisation & economy  Reduction of risk & uncertainty  Acquisition of particular resources & activities 8. Key Partnerships
  23. 23. Customer Relationships v v
  24. 24. 9. Cost Structure The business model elements result in the cost structure • What are the most important costs? • Which Key Resources are most expensive? • Which Key Activities are most expensive? Is your business more? • Cost Driven (leanest cost structure) • Value Driven (focused on value creation) Sample characteristics • Fixed Costs (salaries, rents, utilities) • Variable costs
  25. 25. Business Model Canvas
  26. 26. What next? • Test the guesses in the Building Model Canvas • Get out of the building and talk to customers • Only when potential customers validate the idea, then build the product or service • Saves time & money • Or Pivot
  27. 27. Summary Aim: • To introduce the Business Model Canvas Tool Objectives: 1. Define a Business Model 2. Show a real life example 3. Explore the 9 Building Blocks of the Business Model Canvas
  28. 28. Additional Information YouTube Business Model Canvas in 5 minutes https://www.youtube.com/watch?v=_4MHqyf4Vw0 Strategyzer.com Business Model Canvas Explained • https://www.youtube.com/watch?v=QoAOzMTLP5s Business Model Canvas Tutorial Episodes 1 - 6 • https://www.youtube.com/watch?v=wwShFsSFb-Y • https://www.youtube.com/watch?v=wlKP-BaC0jA • https://www.youtube.com/watch?v=iA5MVUNkSkM • https://www.youtube.com/watch?v=7O36YBn9x_4 • https://www.youtube.com/watch?v=-2gd_vhNYT4 • https://www.youtube.com/watch?v=SshglHDKQCc Catherine Duggan: gmail: duggancatherine56@gmail.com LinkedIn: ie.linkedin.com/pub/catherine-kearns/40/b4a/126/
  29. 29. Conclusion Thank you for your attention Questions & Answers

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