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Define the Future State with
Business Model Canvas
Maurizio Garofalo – IIBA Italy Chapter
IIBA Italy Chapter - “Happy Hour...
2
Business Model Canvas
Define the Future State with Business Model Canvas
Def_Business Model Canvas
A business model canv...
3Define the Future State with Business Model Canvas
Business Model Canvas vs BABOK
• It is a widely used and effective fra...
4Define the Future State with Business Model Canvas
(Business Model) Canvas
Key
Partners
Key
Activities
Key
Resources
Cost...
5Define the Future State with Business Model Canvas
Customer Segments
Key
Partners
Key
Activities
Key
Resources
Cost
Struc...
6Define the Future State with Business Model Canvas
Value Propositions
Key
Partners
Key
Activities
Key
Resources
Cost
Stru...
7Define the Future State with Business Model Canvas
Channels
Key
Partners
Key
Activities
Key
Resources
Cost
Structure
Reve...
8Define the Future State with Business Model Canvas
Customer Relationship
Key
Partners
Key
Activities
Key
Resources
Cost
S...
9Define the Future State with Business Model Canvas
Revenue Stream
Key
Partners
Key
Activities
Key
Resources
Cost
Structur...
10Define the Future State with Business Model Canvas
Key Resources
Key
Partners
Key
Activities
Key
Resources
Cost
Structur...
11Define the Future State with Business Model Canvas
Key Activities
Key
Partners
Key
Activities
Key
Resources
Cost
Structu...
12Define the Future State with Business Model Canvas
Key Partners
Key
Partners
Key
Activities
Key
Resources
Cost
Structure...
13Define the Future State with Business Model Canvas
Cost Structure
Key
Partners
Key
Activities
Key
Resources
Cost
Structu...
14Define the Future State with Business Model Canvas
The
BUSINESS MODEL ENVIRONMENT
helps you understand the context in wh...
15Define the Future State with Business Model Canvas
Business Model Environment
SUPPLIERS AND OTHER VALUE
CHAIN ACTORS
STA...
16Define the Future State with Business Model Canvas
FIT
VALUE MAP CUSTOMER PROFILE
Products & Services
This is a list of ...
17Define the Future State with Business Model Canvas
Design Process on 5 Phases
Prepare for a
successful
business model
de...
18Define the Future State with Business Model Canvas
OUR CONTACTS
• Join us, contact us: you can participate to our initia...
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Define the Future State with Business Model Canvas (Maurizio Garofalo) - Happy Hour Roma

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Maurizio Garofalo presenta l'esperienza di BAWI 2016 e dell'utilizzo del Business Model Canvas.

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Define the Future State with Business Model Canvas (Maurizio Garofalo) - Happy Hour Roma

  1. 1. Define the Future State with Business Model Canvas Maurizio Garofalo – IIBA Italy Chapter IIBA Italy Chapter - “Happy Hour Series” – Rome Branch
  2. 2. 2 Business Model Canvas Define the Future State with Business Model Canvas Def_Business Model Canvas A business model canvas describes how an enterprise creates, delivers, and captures value for and from its customers. - BABOK Guide v3 - A BUSINESS MODEL CANVAS is a tool to describe, analyze and design Business Models. Business model can best be described through NINE BASIC BUILDING BLOCKS that show the logic of how a company intends to make money. The nine elements are mapped on four main business areas: customers, supply, infrastructure and financial strength. Then a Business Model is like a blueprint for a strategy to be implemented, through a plan of evolution of its organizational structure, processes and systems: the BUSINESS PLAN Source BABOK® Guide – Version 3.0 - IIBA Italy Chapter elaboration
  3. 3. 3Define the Future State with Business Model Canvas Business Model Canvas vs BABOK • It is a widely used and effective framework that can be used to understand and optimize business models. • It is simple to use and easy to understand. • Does not account for alternative measures of value such as social and environmental impacts. • The primary focus on value propositions does not provide a holistic insight for business strategy. • Does not include the strategic purpose of the enterprise within the canvas. A business model canvas can be used as a DIAGNOSTIC and PLANNING tool regarding strategy and initiatives. • As a DIAGNOSTIC TOOL, the various elements of the canvas are used as a lens into the current state of the business, especially with regards to the relative amounts of energy, time, and resources the organization is currently investing in various areas. • As a PLANNING TOOL, the canvas can be used as a guideline and framework for understanding inter-dependencies and priorities among groups and initiatives Source BABOK® Guide – Version 3.0 - IIBA Italy Chapter elaboration
  4. 4. 4Define the Future State with Business Model Canvas (Business Model) Canvas Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels The different groups of people or organizations an enterprise aims to reach and serve The bundle of products and services that create value for a specific Customer Segment How a company communicates with and reaches its Customer Segments to deliver a Value Proposition The types of relationships a company establishes with specific Customer Segments The cash a company generates from each Customer Segment The network of suppliers and partners that make the business model work All costs incurred to operate a business model The most important things a company must do to make its business model work The most important assets required to make a business model work Key Resources Cost Structure Revenue Stream Channels Source Business Model Generation - IIBA Italy Chapter elaboration
  5. 5. 5Define the Future State with Business Model Canvas Customer Segments Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels The different groups of people or organizations an enterprise aims to reach and serve L’insieme di prodoti e servizi che creano valore per uno specifico segmento di clientela La rete di fornitori e partner che permette al modello di business di funzionare Tutti i costi che si devono sostenere per far funzionare un modello di business I beni più importanti necessari affinché un modello di business funzioni Key Resources Cost Structure Revenue Stream Channels In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviors, or other attributes Customer groups represent separate SEGMENTS IF: • Their needs require and justify a DISTINCT OFFER • They are reached through DIFFERENT DISTRIBUTION CHANNELS • They require DIFFERENT TYPES OF RELATIONSHIPS • They have substantially DIFFERENT PROFITABILITIES • They are willing to pay for DIFFERENT ASPECTS OF THE OFFER What to do: 1. Describe the customers 2. Divide them into segments 3. Understand their needs, for what they are paying For whom are we creating value? Who are our most important customers? Source Business Model Generation - IIBA Italy Chapter elaboration
  6. 6. 6Define the Future State with Business Model Canvas Value Propositions Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels I diversi gruppi di persone o organizzazioni che un’azienda desidera raggiungere o servire The bundle of products and services that create value for a specific Customer Segment Tutti i costi che si devono sostenere per far funzionare un modello di business Key Resources Cost Structure Revenue Stream Channels What to do: 1. Describe the values 2. Divide the values into classes 3. Associate values to the customer segments The Value Proposition is the reason why customers turn to one company over another Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment Values may be QUANTITATIVE (e.g. price, speed of service) or QUALITATIVE (e.g. design, customer experience). What value do we deliver to the customer? What bundles of products and services are we offering to each Customer Segment? Source Business Model Generation - IIBA Italy Chapter elaboration
  7. 7. 7Define the Future State with Business Model Canvas Channels Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels How a company communicates with and reaches its Customer Segments to deliver a Value Proposition Tutti i costi che si devono sostenere per far funzionare un modello di business I beni più importanti necessari affinché un modello di business funzioni Key Resources Cost Structure Revenue Stream Channels What to do: 1. Sort channels 2. Follow the purchase lifecycle 3. Associating channels to the customer segments Communication, distribution, and sales Channels comprise a company's interface with customers. Channels are customer touchpoints that play an important role in the customer experience. We can distinguish: • between DIRECT Channels and INDIRECT ones • between OWNED Channels and PARTNER Channels. Through which Channels do our Customer Segments want to be reached? Which ones work best? How are we integrating them with customer routines? Source Business Model Generation - IIBA Italy Chapter elaboration
  8. 8. 8Define the Future State with Business Model Canvas Customer Relationship Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels Il modo in cui un’azienda comunica con i propri segmenti di clientela e li raggiunge per portare loro il valore offerto The types of relationships a company establishes with specific Customer Segments Tutti i costi che si devono sostenere per far funzionare un modello di business I beni più importanti necessari affinché un modello di business funzioni Key Resources Cost Structure Revenue Stream Channels What to do: 1. Focus on the customer experience 2. To develop the image of the company towards our client 3. Maximize the effectiveness of the relationship Customer relationships may be driven by the following motivations: • CUSTOMER ACQUISITION • CUSTOMER RETENTION • BOOSTING SALES (UPSELLING) In the early days Customer Relationships are driven by aggressive acquisition strategies. When the market became saturated, operators switched to focusing on customer retention and increasing average revenue per customer. What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? Source Business Model Generation - IIBA Italy Chapter elaboration
  9. 9. 9Define the Future State with Business Model Canvas Revenue Stream Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels I diversi gruppi di persone o organizzazioni che un’azienda desidera raggiungere o servire I tipi di relazione che un’azienda stabilisce con uno specifico segmento clientela The cash a company generates from each Customer Segment La rete di fornitori e partner che permette al modello di business di funzionare Tutti i costi che si devono sostenere per far funzionare un modello di business Le cose più importanti che un’azienda deve fare perché il suo modello di business funzioniKey Resources Cost Structure Revenue Stream Channels What to do: 1. Define how customers pay 2. Define to what they are willing to pay 3. Define the price setting mechanism We can generate one or more Revenue Streams from each Customer Segment. Each Revenue Stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management. A business model can involve two different types of Revenue Streams: • TRANSACTION REVENUES resulting from one-time customer payments • RECURRING REVENUES For what value are our customers really willing to pay? For what do they currently pay? How much does each Revenue Stream contribute to overall revenues? Source Business Model Generation - IIBA Italy Chapter elaboration
  10. 10. 10Define the Future State with Business Model Canvas Key Resources Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels Il modo in cui un’azienda comunica con i propri segmenti di clientela e li raggiunge per portare loro il valore offerto Tutti i costi che si devono sostenere per far funzionare un modello di business The most important assets required to make a business model work Key Resources Cost Structure Revenue Stream Channels What to do: 1. List the key resources 2. Relate them with the right quadrant elements of the canvas Key Resources can be categorized as follows: • PHYSICAL RESOURCES (buildings, vehicles, systems,…) • INTELLECTUAL RESOURCES (brands, proprietary, knowledge, patents and copyrights) • HUMAN RESOURCES • FINANCIAL RESOURCES (cash, lines of credit, or a stock option) What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Source Business Model Generation - IIBA Italy Chapter elaboration
  11. 11. 11Define the Future State with Business Model Canvas Key Activities Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels I tipi di relazione che un’azienda stabilisce con uno specifico segmento clientela Tutti i costi che si devono sostenere per far funzionare un modello di business The most important things a company must do to make its business model work I beni più importanti necessari affinché un modello di business funzioni Key Resources Cost Structure Revenue Stream Channels What to do: 1. List the key activities 2. Relate them with the right quadrant elements of the canvas Key Activities can be categorized as follows: • PRODUCTION (designing, making, and delivering a product) • PROBLEM SOLVING (new solutions to individual customer problems) • PLATFORM/NETWORK (Networks, matchmaking platforms, software, and even brands) What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Source Business Model Generation - IIBA Italy Chapter elaboration
  12. 12. 12Define the Future State with Business Model Canvas Key Partners Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels The network of suppliers and partners that make the business model work Tutti i costi che si devono sostenere per far funzionare un modello di business Key Resources Cost Structure Revenue Stream Channels What to do: 1. Think about partnerships to cut costs or risks 2. Entering special suppliers 3. Enter strategic alliances We can create alliances to optimize our business models, reduce risk, or acquire resources. We can distinguish between four different types of partnerships: • STRATEGIC ALLIANCES between non-competitors • COOPETITION: strategic partnerships between competitors • JOINT VENTURES to develop new businesses • BUYER-SUPPLIER RELATIONSHIPS to assure reliable supplies Who are our Key Partners? Who are our key Suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? Source Business Model Generation - IIBA Italy Chapter elaboration
  13. 13. 13Define the Future State with Business Model Canvas Cost Structure Key Partners Key Activities Key Resources Cost Structure Revenue Stream Customer Segments Value Propositions Customer Relationship Channels I diversi gruppi di persone o organizzazioni che un’azienda desidera raggiungere o servire L’insieme di prodoti e servizi che creano valore per uno specifico segmento di clientela I tipi di relazione che un’azienda stabilisce con uno specifico segmento clientela Il denaro che un’azienda ricava da ciascun segmento di clientela (i costi vanno sottratti ai ricavi per creare guadagni) La rete di fornitori e partner che permette al modello di business di funzionare All costs incurred to operate a business model Le cose più importanti che un’azienda deve fare perché il suo modello di business funzioni Key Resources Cost Structure Revenue Stream Channels What to do: 1. List the costs 2. Distinguish between fixed costs and variable costs We can distinguish between two broad classes of business model Cost Structures: • COST-DRIVEN (focus on minimizing costs wherever possible) • VALUE-DRIVEN (focus on value creation) Cost Structures can have the following characteristics: • FIXED COSTS (despite the volume of goods or services produced) • VARIABLE COSTS (proportionally with the volume of goods or services produced) • ECONOMIES OF SCALE (Cost advantages that a business enjoys as its output expands) • ECONOMIES OF SCOPE (Cost advantages that a business enjoys due to a larger scope of operations) What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Source Business Model Generation - IIBA Italy Chapter elaboration
  14. 14. 14Define the Future State with Business Model Canvas The BUSINESS MODEL ENVIRONMENT helps you understand the context in which you create. The BUSINESS MODEL CANVAS helps you create value for your business. The VALUE PROPOSITION CANVAS helps you create value for your customer. Source Business Model Generation - IIBA Italy Chapter elaboration Zooming the Business Model Canvas
  15. 15. 15Define the Future State with Business Model Canvas Business Model Environment SUPPLIERS AND OTHER VALUE CHAIN ACTORS STAKEHOLDERS INCUMBENTS INSURGENTS SUBSTITUTE PRODUCTS AND SERVICES TECHNOLOGY TRENDS REGULATORY TRENDS SOCIOECONOMIC TRENDS SOCIETAL AND CULTURAL TRENDS INDUSTRY FORCES KEY TRENDS GLOBAL MARKET CONDITIONS CAPITAL MARKETS COMMODITIES AND OTHER RESOURCES ECONOMIC INFRASTRUCTURE MACRO- ECONOMIC FORCES MARKET FORCES MARKET SEGMENTS MARKET ISSUES SWITCHING COSTS REVENUE ATTRACTIVENESS Source Business Model Generation - IIBA Italy Chapter elaboration
  16. 16. 16Define the Future State with Business Model Canvas FIT VALUE MAP CUSTOMER PROFILE Products & Services This is a list of all the Products and Services a value proposition is built around Gain Creators Describe how your products and services create customer gains Pain Relievers Describe how your products and services alleviate customer pains Customer Jobs Describe what customers are trying to get done in their work and in their lives, as expressed in their own words. Gains describe the outcomes customers want to achieve or the concrete benefits they are seeking. Pains describe bad outcomes, risks, and obstacles related to customer jobs. Source Business Model Generation - IIBA Italy Chapter elaboration Value Proposition Canvas
  17. 17. 17Define the Future State with Business Model Canvas Design Process on 5 Phases Prepare for a successful business model design project SETTING THE STAGE Create awareness of the need for a new business model, describe the motivation behind the project, and establish a common language to describe, design, and analyze and discuss business models. Research and analyze elements needed for the business model design effort IMMERSION Immerse yourselves in relevant knowledge: collect information, interview experts, study potential customers, and identify needs and problems. Generate and test viable business model options, and select the best INQUIRY Transform the information and ideas from the previous phase into business model prototypes that can be explored and tested. Then select the most satisfactory business model design. Implement the business model prototype in the field EXECUTION Implement the selected business model design. EVOLUTION Adapt and modify the business model in response to market reaction Set up the management structures to continuously monitor, evaluate, and adapt or transform your business model. MOBILIZE UNDERSTAND DESIGN IMPLEMENT MANAGE Source Business Model Generation - IIBA Italy Chapter elaboration SCOPEFOCUSDESCRIPTION
  18. 18. 18Define the Future State with Business Model Canvas OUR CONTACTS • Join us, contact us: you can participate to our initiatives • info@italy.iiba.org • www.italy.iiba.org http://goo.gl/q5sYt www.slideshare.net/IIBA-IT https://twitter.com/iiba_italy http://www.facebook.com/ItalyIIBA

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