The lecture on Business Model Canvas Definition and Examples gives introduction to the concept developed by Alexander Osterwalder and his team. The Lecture is Composed of the following content: 1. Business Model Canvas Definition 2. Business Model Advantages 3. Business Model Canvas Examples 4. Key Components of a Business Model Canvas 5. Business Model Innovation This is one of the lectures on the Entrepreneurship Lecture Series: Startup Playbook. This course is general in nature and useful for professionals from all backgrounds. Explanation of the slides is given at: https://youtu.be/BcevQn45bHE

1. Business Model
Canvas
For Startups

2. “A business model describes the
rationale of how an organization
creates, delivers, and captures
value”
In other words, does the WHOLE
business makes any SENSE at all?
About

3. ValueProduct
SHIFT IN FOCUS

4. Extension of feasibility analysis
Focus on how all the elements of a business
fit together in to a working whole
Describes why the network of participants
needed to make a business idea viable
Articulates a company’s core logic to all
stakeholders, including the firm’s employees
Adavantages

5. Core Strategy (How a Company Competes)
Strategic Resources
Partnership Network
Customer Interface
Components of Effective
Business Model

6. 9
Building Blocks

7. ???Can BM be Changed

8. Servitization
Bundling
Unbundling
Yes!

9. 9
Building Blocks

10. 9
Building Blocks

11. 9
Building Blocks

12. Difference Between Startups and
Established Firms?
Business Model Flexibility

13. 9
Building Blocks

14. 9
Building Blocks

15. Different groups of people or
organization an enterprise aims to
reach and serve.
-Mass market
-Niche market
-Segmented
-Diversified
Multi-sided Platforms
Questions?
For Whom we are creating value?
Our most important customers?
Customer
Segments

17. Bundle of products or services that
create value for a specific Customer
Segment
Elements which contribute to
customer value creation:
-Newness
-Performance
-Customization
Questions:
Which problems are we solving?
What value are we delivering?
Value
Proposition

19. How a company communicates with
and reaches its Customer Segments
to deliver it Value Proposition
Channel Types:
-Direct Channels
-Indirect Channels
Questions?
-Through which channels we reach?
-How are we reaching them now?
Channels

21. Type of relationship a company
establishes with its Customer
Segments
-Personal assistance
-Dedicated Personal assistance
-Self-service
-Automated Services
Questions?
What types of relationship customers
expect us to establish and maintain
with them?
Customer
Relationships

23. Represents the cash a company
generates from each Customer
Segment
Transaction revenues v/s Recurring
revenues
Revenue
Streams

24. Key Questions to ask:
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?
Revenue
Streams (Contd.)

25. Ways to generate revenue streams:
Asset Sale
Usage Fee
Subscription fee
Lending/Renting/Leasing
Licensing
Brokerage
Advertising
Donations and Govt funding
Revenue
Streams

26. Revenue
Streams

28. Most important things a company
must do to make its business model
work
-Production
-Problem Solving
-Platform/Network
Questions?
-What key activities do our Value
Proposition require?
-Our distribution channel require?
Key Activities

29. Porter argues that the performance of each activity is a potential
source of competitive advantage, either by its performance at a lower
cost or by delivering superior buyer value and hence, differentiation.
(Porter 1985, p. 39)

31. Most important assets required to
make a business model work
Balance Sheet Resources:
- Current resources
- Productive resources
- Intangible resources
Other non-Balance Sheet Resources
Questions?
What key resources do our Value
Proposition require?
Key Resources

33. Network of suppliers and partners
required to make the business model
work
3 motivations for creating
partnerships:
-Optimization and economies of scale
-Reduction of risk and uncertainty
-Acquisition of particular resources
Questions?
Who are our key partners?
Who are our key suppliers?
Key
Partnerships

35. All costs incurred to operate a
business model
Key Questions
What are the most important costs
inherent in our business model?
Which Key Resources are most
expensive?
Which Key Activities are most
expensive?
Cost Structure

36. Business Model Cost Structures:
Cost-driven BM v/s Value-driven BM
Characteristics of Cost structures:
- Fixed Costs
- Variable Costs
- Economies of Scale
- Economies of Scope
Cost Structure

38. Business Model is a living document.
You have to Find the Right Business Model by
Continuous Learning & Unlearning

39. 9
Building Blocks

40. Example - Skype

41. 9
Building Blocks