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The Business Model Explained to my Grandmother

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What is a Business Model? Why is it important? Explained in a simple and useful way so to better understand the world we live in.

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The Business Model Explained to my Grandmother

  1. 1. 1. customers 2. value 3. channels 4. customer proposition relationships The ess M odel5. revenues Busin 6. key resources explained to my G randm other7. key 8. 9. costi Businessactivities partnerships Model CanvasAnche in Italiano http://slidesha.re/eGZRLO info@hugowiz.it
  2. 2. QuestionCan you tell thedifference betweena Business Plan anda Business Model? 8%
  3. 3. QuestionCan you tell the You will, in a short time. You will also be able todifference between sketch a Business Modela Business Plan and in few minutes.a Business Model? Follow the presentation! 12%
  4. 4. DefinitionBusiness Model A Business Model shows how an organization:Definition creates, delivers and captures value 16%
  5. 5. 9 building blocks 1. customers 2. value 3. channelsThe 9 buildingblocks of a 4. relation 5. revenues 6. resourcesBusiness Model 7. activities 8. partners 9. costs 21%
  6. 6. 9 building blocks > customers What: customers grouped by needs, relationship, interests, profit and distribution channels 1. customers To do: - describe customers - classify them - understand needs - for what they pay - profitability 25%
  7. 7. 9 building blocks > value proposition What: something useful for the customers, that the organization can deliver2. value proposition To do: - describe the values - classifiy them - relate with customers 29%
  8. 8. 9 building blocks > channels What: how the organizations value proposition reaches the customer3. channels To do: - classify the channels - buying life cycle - buying experience 32%
  9. 9. 9 building blocks > customer relationships What: how the organization earns and retains customers4. customer relationships To do: - customer experience - organizations image - effectiveness 37%
  10. 10. 9 building blocks > revenues What: revenues generated by different groups of customers; classified by value5. revenues proposition type To do: - how do customers pay - for what do they pay - price definitions 42%
  11. 11. 9 building blocks > key resources What: whats needed to create the value that the organization offers to customers: machines,6. key resources ideas, people, money ... To do: - resource list - relate to value proposition 46%
  12. 12. 9 building blocks > key activities What: what the organization must do to create value for the customers7. key activities To do: - activity list - relate with value proposition 50%
  13. 13. 9 building blocks > partnerships What: who works with the organization for creating value for the customers: strategic allies, suppliers,8. partnerships cooperators To do: - cost reductions - risk reductions - special suppliers - allies 54%
  14. 14. 9 building blocks > costs What: money spent by the organization for key resources, key activities and partners9. costs To do: - cost list - fixed costs - variable costs 58%
  15. 15. 9 building blocks > summary 1. customers 2. value proposition 9 3. 4. channels customer relationship Business Model 5. revenues building blocks 6. key resources 7. key activities 8. partnerships 9. costs 62%
  16. 16. Business Model Canvas > intro What: a framework showing the building blocks relationshipsLets organize the 9building blocks: theBusiness Model Canvas Who: the Business Model Canvas was invented by Alexander Osterwalder and published in his book: Business Model Generation 66%
  17. 17. Business Model Canvas Business Model Canvas 7. activities 4. relation 8. partners 2. value 1. customers 6. resources 3. channels 9. costs 5. revenues http://www.businessmodelgeneration.com 71%
  18. 18. Business Model Canvas > value and customers Business Model Canvas mer - custo tion 4. relation value munica com 2. value 1. customers 3. channels ches alu e rea ers the v e custom nels th h chan g throu http://www.businessmodelgeneration.com 75%
  19. 19. Business Model Canvas > value Business Model Canvas 7. activities 8. partners 2. value 6. resources ribute T hose cont alue creating v http://www.businessmodelgeneration.com 79%
  20. 20. Business Model Canvas > costs and revenues Business Model Canvas 7. activities Creating value costs money 8. partners 1. customers 6. resources Earnings rs should be Custome n greater tha pay zero 9. costs 5. revenues earnings = revenues - costs http://www.businessmodelgeneration.com 83%
  21. 21. Business Model Canvas > relationships Business Model Canvas 7. activities 4. relation 8. partner 2. value 1. customers 6. resources 3. channels 9. costs 5. revenues earnings = revenues - costs http://www.businessmodelgeneration.com 87%
  22. 22. Business Model > book And now? er wald ster s ion er O e xan d h permis : Al d wit ight use C opyr To infinity and beyond! Buy Alexander Osterwalders book. Download a 70 page preview from the website: businessmodelgeneration.com 91%
  23. 23. Business Model > innovation in Italy So what? We are spreading the word about Business Innovate YOUR Model Innovation in Business Model Italy and beat the info@hugowiz.it competition! 96%
  24. 24. Business Model vs. Business Plan Ah, A Business Plan tells how much stuff, I was forgetting: how much time and Business Model and how much money you need to put your Business Plan Business Model into difference effect 100%

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