The document discusses key aspects of business model generation including lean thinking principles of identifying value, mapping the value stream, creating flow, establishing pull and seeking perfection. It also covers customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners and cost structure.

1. Joe Dager – Business901
with Business Model Generation

2. Lean Thinking
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection

3. Identify Value
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7. Steve Blank Video

8. Customer Segments
Type of Market:
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided Platform

9. Value Proposition
• Newness
• Performance
• Customization
• "Getting the Job Done"
• Design
• Brand/Status
• Price
• Cost Reduction
• Risk Reduction
• Accessibility
• Convenience/Usability

10. Channels
Customer Decision Making Process:
1. Awareness - How do we raise awareness about our products/services?
2. Evaluation - How do we help customers evaluate our Value proposition?
3. Purchase - How do we allow customers to purchase products/services?
4. Delivery - How do we deliver a Value Proposition to customers?
5. After sales - How do we provide post-purchase customer support?

11. Customer Relationships
Examples:
Personal assistance Dedicated Personal
Self-Service Automated Services
Communities Co-creation

12. Revenue Streams
Types: Asset sale, Usage fee, Subscription Fees, Licensing, Brokerage
fees, Advertising, Lending/Renting/Leasing
Fixed Pricing: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
Dynamic Pricing: Negotiation (bargaining), Yield Management, Real-time

13. Key Resources
Types of Resources
• Physical
• Human
• Financial
• Intellectual (brand, patents, copyrights, data)

14. Key Activities
Our Customer
Relationships?
Categories
• Production
• Problem Solving
• Platform/Network
Our Revenue
streams?
Our
Distribution
Channels?

15. Key Partners
Motivations for Partnerships:
• Optimization and economy
• Reduction of risk and uncertainty
• Acquisition of particular resources and activities

16. Cost Structure
Is your business more:
Cost Driven - (leanest structure, low price, maximum automation, extensive
outsourcing)
Value Driven - (focused on value creation, premium value proposition)
Sample Characteristics:
Fixed Costs (salaries, rents, utilities), Variable costs, Economies of scale/scope

17. Identify Value
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18. Identify Value