Business model canvas explaination

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Business model canvas explaination

  1. 1. Business Model Canvas Explaination Center for Entrepreneurial Development IBA – Karachi
  2. 2. What’s A Company?
  3. 3. What’s A Company? A business organization which sells a product or service in exchange for revenue and profit
  4. 4. How Are Companies Organized?
  5. 5. How Are Companies Organized? Companies are organized around Business Models
  6. 6. What’s a Business Model?
  7. 7. What’s a Business Model? A business model describes all the parts of the company necessary to make money
  8. 8. What About My Technology?
  9. 9. What About My Technology? Your technology is one of the many critical pieces necessary to build a company. It is part of the “Value Proposition”
  10. 10. What About My Technology? Customers don’t care about your technology They are trying to solve a problem
  11. 11. What’s A Startup?
  12. 12. What’s A Startup? A startup is a temporary organization designed to search for a repeatable and scalable business model
  13. 13. How to Build A Startup Idea Business Model Size Opportunity Customer Development
  14. 14. How to Build A Startup Idea Business Model(s) Size of the Opportunity Customer Discovery Customer Validation
  15. 15. How to Build A Startup Idea Size of the Opportunity Business Model(s) Customer Discovery Customer Validation Theory Practice Business Model(s) Size of the Opportunity
  16. 16. How to Build A Startup Idea Size of the Opportunity Business Model(s) Customer Discovery Customer Validation • Web startups get the product in front of customers earlier Business Model(s) Size of the Opportunity
  17. 17. what is the most powerful about using a shared language, such as the Business Model Canvas?
  18. 18. What will happen if you don’t have Business Model and you want to discuss you business with your team?
  19. 19. A business model describes all the parts of the company necessary to make money
  20. 20. what are those parts? what parts is a business model composed of?
  21. 21. Business Model Canvas
  22. 22. to describe, challenge, design, and invent business models more systematically
  23. 23. building blocks
  24. 24. CUSTOMER SEGMENTS images by JAM The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve 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
  25. 25. For whom are we creating value? Who are our most important customers?
  26. 26. Different types of Customer Segments Types of Customer Segments Mass Market Niche Market Segmented Diversified Multi-sided platforms (or multi-sided market)
  27. 27. VALUE PROPOSITIONS images by JAM “The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment.” • Some Value Propositions may be innovative and represent a new or disruptive offer. • Others may be similar to existing market offers, but with added features and attributes.
  28. 28. What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment?
  29. 29. VALUE PROPOSITIONS images by JAM Customer Value Creation List • Newness • Performance • Customization • Getting the job done • Design • Brand/status • Price • Cost reduction • Risk Reduction • Accessibility • Convenience/usability Values • Quantitative • Qualitative
  30. 30. CHANNELS images by JAM “The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.” Channels serve several functions, including: • Raising awareness among customers about a company’s products and services • Helping customers evaluate a company’s Value Proposition • Allowing customers to purchase specific products and services • Delivering a Value Proposition to customers • Providing post-purchase customer support
  31. 31. Through which Channels do our Customer Segments want to be reached? 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?
  32. 32. Channel Types & Phases
  33. 33. CUSTOMER RELATIONSHIPS images by JAM “The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.” Customer relationships may be driven by the following motivations: • Customer acquisition • Customer retention • Boosting sales (upselling)
  34. 34. What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model?
  35. 35. CUSTOMER RELATIONSHIPS images by JAM Categories of Customer Segments 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self Service 4. Automated Service 5. Communities 6. Co-creation
  36. 36. REVENUE STREAMS images by JAM “The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings)” A business model can involve two different types of Revenue Streams: 1. Transaction revenues 2. Recurring revenues
  37. 37. 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?
  38. 38. REVENUE STREAMS images by JAM Ways to generate Revenue Stream 1. Asset Sale 2. Usage fee 3. Subscription fees 4. Lending/Renting/Leasing 5. Licensing 6. Brokerage fees 7. Advertisemement
  39. 39. Pricing Mechanism
  40. 40. KEY RESOURCES images by JAM “The Key Resources Building Block describes the most important assets required to make a business model work.” These resources allow an enterprise to: • Create • Offer a Value Proposition • Reach markets • Maintain relationships with Customer Segments • Earn revenues.
  41. 41. What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?
  42. 42. KEY RESOURCES images by JAM Key Resources are Categorised into: 1. Physical 2. Intellectual 3. Human 4. Financial
  43. 43. KEY ACTIVITIES images by JAM “The Key Activities Building Block describes the most important things a company must do to make its business model work “ These resources allow an enterprise to: • Create • Offer a Value Proposition • Reach markets • Maintain relationships with Customer Segments • Earn revenues.
  44. 44. What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams?
  45. 45. KEY ACTIVITIES images by JAM Key Activities are Categorised into: 1. Production 2. Problem Solving 3. Platform/network
  46. 46. KEY PARTNERS images by JAM “The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work.” Four different types of partnerships: 1. Strategic alliances between non-competitors 2. Coopetition: strategic partnerships between competitors 3. Joint ventures to develop new businesses 4. Buyer-supplier relationships to assure reliable supplies
  47. 47. Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?
  48. 48. KEY PARTNERS images by JAM Three motivation for creating Partnership 1. Optimization and economy of scale 2. Reduction of risk and uncertainty 3. Acquisition of particular resources and activities
  49. 49. COST STRUCTURE images by JAM “The Cost Structure describes all costs incurred to operate a business model.”
  50. 50. What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
  51. 51. COST STRUCTURE images by JAM Cost Structures can have the following characteristics: Fixed Cost | Variable Cost | Economies of Scales |Economies of Scope Business model Cost Structures: 1. Cost-driven 2. Value-driven
  52. 52. images by JAM customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition
  53. 53. images by JAM customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition
  54. 54. images by JAM
  55. 55. But, Realize They’re Hypotheses
  56. 56. 9 Guesses Guess Guess Guess Guess Guess Guess Guess GuessGuess
  57. 57. CANVAS OVERLAY images by JAM OFFER CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES KEY PARTNERS KEY RESOURCES
  58. 58. images by JAM CANVAS OVERLAY OFFER CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES KEY PARTNERS KEY RESOURCES
  59. 59. Idea: A renren app that facilities event meeting in China colleges User size: 20 million college students in China Serviceable Addressable Market: US$ 100 million Customer Interviewed: 154 Online Surveyed: 48
  60. 60. Sources • Stanford Technology Venture Program • Steve Blank’s Lectures • Chuck Eesley’s Lectures
  61. 61. EXAMPLES
  62. 62. Diabetics Sweet Sensors Yi Lu, Tian Lan Neil Kane Chris Sorensen Business Model Canvas Clinicians (in rural area) Triage nurses Pre-diabetics Product supports Patient network/community Retailers (Walgreen) Online vendors (Amazon) Direct sales Disposable test kit (used repeatedly on a regular basis) At home Convenient Less exposure to infectious diseases in the hospital Cheaper More frequent Better indicator of health (diabetic management) Conferences Product R&D QC Marketing IP Personnel Glucose monitor manufacturers Kit manufacturers Reagent suppliers Reagents Manufacture Licensing FDA certification?
  63. 63. Diabetics Sweet Sensors Yi Lu, Tian Lan Neil Kane Chris Sorensen Action Plan Clinicians (in rural area) Triage nurses Pre-diabetics Product supports Patient network/community Retailers (Walgreen) Online vendors (Amazon) Direct sales Disposable test kit (used repeatedly on a regular basis) At home Convenient Less exposure to infectious diseases in the hospital Cheaper More frequent Better indicator of health (diabetic management) Conferences Product R&D QC Marketing IP Personnel Glucose monitor manufacturers Kit manufacturers Reagent suppliers Reagents Manufacture Licensing FDA certification?
  64. 64. General methodology for adding fluorine to lead compounds of interest The Business Model Canvas Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds IP PoP data Regulatory plan Understanding of the regulatory process Contract cGMP precursor manufacture Salary, Rents Clinical trials SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising cGMP manufacturer Radiopharmacies Nuclear Medicine and Radiology departments Technical Assistance (Image Atlas) FDA regulatory support Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Sales of intermediates Technology license Product license (royalty) Direct sales of precursor R&D and clinical studies presented in journals and meetings Drug developers Pharmaceutical development companies IP PoP data Radiologists Technical assistance
  65. 65. General methodology for adding fluorine to lead compounds of interest The Business Model Canvas Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds IP PoP data Regulatory plan Understanding of the regulatory process Contract cGMP precursor manufacture Salary, Rents Clinical trials SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising cGMP manufacturer Radiopharmacies Nuclear Medicine and Radiology departments Technical Assistance (Image Atlas) FDA regulatory support Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Sales of intermediates Technology license Product license (royalty) Drug developers Pharmaceutical development companies IP PoP data Radiologists Technical assistance Direct sales of precursor R&D and clinical studies presented in journals and meetings Sales of precursor through global finished pharmaceutical distributor

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