[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] The Business Model Canvas is a Strategic Management and Lean Startup template for developing new or redesigning existing business models to create competitive advantage. The Business Model Canvas, rooted in Strategyzer's strategic framework, emerges as a dynamic tool, showcasing 9 essential building blocks. These blocks span across an organization's core, infrastructure, customer engagement, and financial dimensions. Encompassing Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure, the canvas is a comprehensive roadmap. Beyond the core blocks, this presentation delves into the strategic genius behind successful business models, exploring real-world exemplars like Apple, Facebook, Amazon, and diverse innovators. Uncovering these key patterns adds a layer of insight, enriching the understanding of effective business model innovation. Purposefully crafted for collaborative environments, this presentation excels as a foundational guide to the Business Model Canvas and complements with essential concepts such as Design Thinking and the Value Proposition Canvas. Tailored for a half-day or one-day immersion, it's a gateway to acquaint participants with potent business modeling approaches. LEARNING OBJECTIVES 1. Understand the key concepts of business model thinking. 2. Acquire knowledge of the 9 building blocks of the Business Model Canvas for value creation. 3. Learn to recognize key patterns of business models. 4. Learn how to apply the Business Model Canvas to map out your current business model for understanding and analysis. 5. Gain basic knowledge of the Business Model design process and related frameworks. CONTENTS 1. Introduction to Business Model Thinking 2. Basics of Design Thinking 3. The 9 Building Blocks 4. Key Patterns of Business Models 5. The Business Model Canvas 6. The Value Proposition Canvas 7. Business Model Design Process 8. Presenting the Business Model Canvas – Do's and Don'ts Appendix: Additional Slides & Templates

1. © Operational Excellence Consulting. All rights reserved.
BUSINESS MODEL
CANVAS
Innovate, Iterate, Elevate

2. © Operational Excellence Consulting 2
Understand the key
concepts of business model
thinking and gain knowledge
of the 9 building blocks of
the Business Model Canvas.
LEARNING OBJECTIVES
Gain basic knowledge of the
Business Model design
process and related
frameworks.
Learn how to apply the
Business Model Canvas to
map out your current
business model for
understanding and analysis.
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
CONTENTS
3
Basics of Design Thinking
2
The 9 Building Blocks
3
Introduction to Business Model
Thinking
1
Business Model Design Process
6
Presenting the Business Model
Canvas
7
The Value Proposition Canvas
5
The Business Model Canvas
4

4. 4
Business Model Canvas
A shared language for describing,
visualizing, assessing, and changing
business models

5. © Operational Excellence Consulting
“
While product innovation and
process innovation are important
aspects in entrepreneurship,
having the right business model
more often than not would make
the difference between success
and failure.”
YVES PIGNEUR
5

6. © Operational Excellence Consulting 6
DEFINITION OF BUSINESS MODEL
“A business model describes
the rationale of how an
organization creates, delivers,
and captures value.”
Source: Strategyzer

7. © Operational Excellence Consulting
● A visual representation of the various elements of your
business model
● The canvas allows you to:
o see the relationships among the parts of your model
o identify hypothesis, assumptions and risks
o plan validation testing (market, channels, pricing)
o find ways to add value or reduce cost
o brainstorm market disruption strategies
THE BUSINESS MODEL CANVAS IS A VISUAL TOOL
7

8. © Operational Excellence Consulting
THE BUSINESS MODEL CANVAS IS A STRATEGIC MANAGEMENT
FRAMEWORK FOR DEVELOPING BUSINESS MODELS
8
Key
Partners
Key
Activities
Value
Proposition
Customer
Segments
Key
Resources
Cost Structure Revenue Streams
Customer
Relationships
Channels
Source: Strategyzer

9. © Operational Excellence Consulting
INTEGRATED SUITE OF TOOLS
9
Zoom out
Zoom in
ENVIRONMENTAL MAP
BUSINESS MODEL CANVAS
VALUE PROPOSITION CANVAS
The Business Model Canvas is a crucial
component of an Integrated Suite of Tools,
which includes the Value Proposition
Canvas and the Environmental Map. This
suite offers a comprehensive framework
for organizations to holistically analyze
and refine their business strategies.
The Business Model Canvas focuses on
systematically defining and optimizing
the entire structure of a company’s
business model, encompassing all key
aspects necessary to create, deliver,
and capture value in the market.

10. © Operational Excellence Consulting
CREATE VALUE FOR YOUR CUSTOMER AND YOUR BUSINESS
10
To create value
for your business,
you need to
create value for
your customer.
To sustainably
create value for
your customer, you
need to create
value for your
business.
A business that generates fewer revenues than it incurs costs will
inevitably disappear, even with the most successful value proposition.

11. © Operational Excellence Consulting
APPLICATIONS OF THE BUSINESS MODEL CANVAS
11
1. Strategizing
2. Dashboard
3. Understanding competition
4. Portfolio of business models
5. Innovation
6. New idea template
7. Understanding customers
8. Organizational alignment
9. Strategy diffusion and co-creation
10. Shared language across functions
11. Aligning value side (revenue) and
infrastructure side (costs)
12. Investing
13. Mergers and acquisitions
14. Exit strategies

12. © Operational Excellence Consulting
“
Business people don’t just
need to understand
designers better; they need
to become designers.”
ROGER MARTIN
12
DEAN, ROTMAN SCHOOL OF MANAGEMENT

13. © Operational Excellence Consulting
BUILDING BUSINESS MODELS ON CUSTOMER INSIGHTS
13
Adopting the customer
perspective is a guiding
principle for the entire
business model design
process. Customer
perspectives should
inform our choices
regarding Value
Propositions, Distribution
Channels, Customer
Relationships and
Revenue Streams.
Source: Adapted from Strategyzer

14. © Operational Excellence Consulting
SHIFTING YOUR PERPECTIVE: FROM ORGANIZATION-CENTRIC TO
CUSTOMER-CENTRIC
14
YOU
Organization-centric
business model design
What can we sell customers?
How can we reach customers most
efficiently?
What relationships do we need to
establish with customers?
How can we make money from the
customers?
THEM
Customer-centric
business model design
What jobs do our customer need to get
done and how can we help? What are
our customer’s aspirations and how
can we help him live up to them?
How do our customers prefer to be
addressed? How do we, as an
enterprise, best fit into their routines?
What relationship do our customers
expect us to establish with them?
For what value(s) are customers truly
willing to pay?
Source: Adapted from Strategyzer

15. © Operational Excellence Consulting
THE BUSINESS MODEL CANVAS IS BASED ON THE THREE LENSES OF
HUMAN-CENTERED DESIGN
15
KP KA VP CR CS
KR CH
C$ R$
FEASIBILITY
Can we deliver it?
DESIRABILITY
Do customers want it?
VIABILITY
Is it capable of producing a profit?
Business Model Canvas

16. © Operational Excellence Consulting
THE 9 BUILDING BLOCKS
16
1
Customer
Segments
An organization
serves one or
several Customer
Segments.
2 3
Value
Propositions
It seeks to solve
customer problems
and satisfy
customer needs
with value
propositions.
Channels
Value propositions
are delivered to
customers through
communication,
distribution and and
sales Channels.
Business Model Canvas

17. © Operational Excellence Consulting
2. VALUE PROPOSITIONS
17
The Value Propositions Building Block describes the bundle of products and
services that create value for a specific Customer Segment
Key Questions:
§ What do we deliver to the customer?
§ Which one of our customer’s problems are we helping
to solve?
§ What bundles of products and services are we
offering to each Customer Segment?
§ Which customer needs are we satisfying?
Key Points:
§ A Value Proposition creates value for a Customer
Segment through a distinct mix of elements catering
to that segment’s needs
§ Values may be quantitative (e.g. price, speed of
service) or qualitative (e.g. design, customer
experience)
§ Elements that contribute to customer value creation:
Newness, Performance, Customization, “Getting the
job done”, Design, Brand/Status, Price, Cost
Reduction, Accessibility, Risk Reduction,
Convenience/Usability

18. © Operational Excellence Consulting
STARBUCKS BUSINESS MODEL
18
KP KA VP CR CS
KR CH
C$ R$
Coffee
Growers
Specialized
Coffee M/C
Makers
Coffee &
Milk Rent
Marketing &
R&D
Marketing
R&D
Packaging &
Bottling
Plants
People
Unique Coffee
Co-created with
Customers
Retail stores
Starbucks
Rewards
Starbucks
Reserve
Supply
Chain
Management
People
Costs
Starbucks
App
Store
Design
Students
Mobile
Professionals
Coffee
Aficionados
Third Place
between the
Home and
Office
A Place to
Hangout with
Friends, Do
Homework
Retail Sales
Retail Sales
Retail Sales
Brand

19. © Operational Excellence Consulting
UBER BUSINESS MODEL
19
KP KA VP CR CS
KR CH
C$ R$
Passengers
Drivers
Taxi on demand
Cash free
Automation (where
possible)
Social media
Mobile app
Social media
PR
Web and mobile
app development
Drivers who own
cars
Marketing
activities
Web and mobile
app
Software engineers
(pricing & routing)
Drivers recruitment
Surge pricing
Premium Uber
brands (e.g. UberX)
Web and mobile
app development
Salaries
Pay per ride
charges
Easy to order cab
& short wait time
Passengers on
demand
Easy to make
additional money
Investors
Local regulators
Mapping data
providers
Payment
processors
Sales & marketing
Driver payments

20. ACTION!
© Operational Excellence Consulting
1. Assemble in teams.
2. Create your current state canvas.
3. Write key words on sticky notes.
4. Place sticky notes on the canvas.
5. Present your canvas.
GROUP WORKSHOP 1
20
Time allowed:
30 mins

21. © Operational Excellence Consulting 21
You need to validate your
business model assumptions with
the customers until you get it right.

22. © Operational Excellence Consulting
THE BUINSESS MODEL CANVAS IS A TOOL TO ALIGN ACTIVITIES TO
CREATE VALUE FOR CUSTOMERS
22
KP KA VP CR CS
KR CH
C$ R$
Source: Adapted from Strategyzer, 2014

23. © Operational Excellence Consulting
ROLE OF VALUE PROPOSITION DESIGNER – DETERMINE THE BEST FIT
BETWEEN THE VALUE PROPOSITION & CUSTOMER NEEDS
23
BUSINESS MODEL
CANVAS
VALUE
PROPOSITION
DESIGNER
+
VALUE
PROPOSITION
CUSTOMER
SEGMENT
Key Partners Key Activities Value Proposition Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Structure Revenue Streams
Source: Adapted from Strategyzer, 2014

24. © Operational Excellence Consulting
“
There’s not a single business
model… There are really a lot
of opportunities and a lot of
options and we just have to
discover all of them.”
TIM O’REILLY
24

25. © Operational Excellence Consulting
4 DESIGN STRATEGIES
25
Business Model
Environment
SWOT Analysis Managing Multiple
Business Models
Blue Ocean Strategy
Perspective
Source: Adapted from Strategyzer

26. © Operational Excellence Consulting
BUSINESS MODEL DESIGN PROCESS
26
STARTING POINT FOR
BUSINESS MODEL
INNOVATION
Business Model
Design &
Innovation
Factors Specific to
Established
Organizations

27. © Operational Excellence Consulting
BUSINESS MODEL DESIGN & INNOVATION
27
Objective Description Examples
Satisfy market Fulfill an unanswered market need Tata car, NetJets,
GrameenBank, Lulu.com
Bring to market Bring a new technology, product or
service to market or exploit an
existing intellectual property
Xerox 914, Swatch, Nespresso,
Red Hat
Improve market Improve or disrupt an existing
market
Dell, EFG Bank, Nintendo Wii,
IKEA, Skype, Ryanair,
Amazon.com retail
Create market Create an entirely new type of
business
Diners Club, Google

28. © Operational Excellence Consulting
5 PHASES OF BUSINESS MODEL DESIGN
28
OBJECTIVE
§ Prepare for a successful business model design project.
§ Research and analyze elements needed for the business model
design project.
§ Generate and test viable business model options, and select the
best.
§ Implement the business model prototype in the field.
§ Adapt and modify the business model in response to market
reaction.
Mobilize
Understand
Design
Implement
Manage

29. © Operational Excellence Consulting
PRESENTING THE BUSINESS MODEL CANVAS – DON’TS
29
1. Commit cognitive murder –
showing the entire canvas all at
once
2. Too much granularity and detail
3. Too many ideas in one canvas
4. “Filling out” each box one after
another like a checklist
5. Orphan elements – elements that
have no connection to other
elements (e.g. a revenue stream
without a customer who is paying
for a value proposition)
6. Mixing present and future state
7. Gives in to the urge to blah blah
blah

30. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING