The document outlines the fundamental concepts of business model generation, emphasizing the importance of understanding how organizations create, deliver, and capture value through various components. It discusses different market types, startup categories, and the stages of the startup lifecycle, highlighting critical aspects like value propositions, customer relationships, and revenue streams. The content serves as a framework for entrepreneurs to develop and validate their business models effectively.

1. Business Model Generation Part1: Canvas Hekovnik, 23. 6. 2011 Petra Oseli

2. Stanford University Steve Blank Business Model Foundry 4 Steps to Epiphany Bussines Model Generation Startup Genome Report

3. business model generation - the book www.businessmodelgeneration.com/book

4. business model “ ... describes the rationale of how an organization creates, delivers, and captures value”

5. business model generation - topics CANVAS PATTERNS (MODELS) DESIGN STRATEGY PROCESS

6. 1 - canvas

7. 9 building blocks Osterwalder & Pigneur (2010): Business Model Generation key activities key partners key resources cost structure revenue streams channels customer relationships customers

8. market type Existing market (faster/better) Existing market (niche/cheaper)  Resegmented market New market (new class of product/market / innovative/never existed) Q: Which market type are you in?

9. types of internet startups The Automizer The Social Transformer The Integrator The Challenger Q: Which type is your startup? http://startupgenome.cc/

10. the Automizer self-service customer acquisition consumer focused product centric fast execution often automize a manual process technology heavy founding teams perform better biggest market existing markets need the least capital

11. the Social Transformer self-service customer acquisition critical mass runaway user growth winner takes all market complex ux network effects create new ways people to interact need 50% longer than Automizer to reach scale stage business heavy and balanced teams perform better new markets, big markets need more capital large team growth, large user growth

12. the Integrator lead generation with inside sales rep high certainty product centric early monetization, high percentage SME focused smaller markets take innovation from consumer internet , rebuild for SB business heavy and balanced teams perform better existing markets (cheaper product) small teams even when they scale

13. the Challenger enterprise sales, repeatable sales processes high customer dependancy complex and rigid markets longest time to reach scale stage biggest markets business heavy teams perform better existing markets (better product) or new markets pivot a lot or not at all large team growth at scaling stage significantly more capital high percentage user monetization

14. the startup * lifecycle Discovery Validation Efficiency Scale Profit Maximization Renewal http://startupgenome.cc/ * valid for web startups Q: Do you move through these stages / in order? 6 Marmer stages milestones/thresholds avg. 18 months avg. 42 months

15. discovery/validation

16. know your typical customer market-segments value proposition customer relationships channels

17. customer segments

18. segmented multi-sided diversified niche market mass market

19. iPod market segment Q: For whom are you creating value?

20. value proposition

21. value proposition Newness Performance Customization Getting the job done Design Brand/Status Price Cost reduction Risk reduction Accessibility Convenience/Usability

22. iPod value proposition Q: What value do you deliver? Which problems are you helping to solve/which needs are you satisfying?

23. channels

24. channels

25. iPod channels Q: Through which channels do your customer segments want to be reached? How are you reaching them now?

26. customer relationships

27. customer relationships Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation

28. iPod customer relationships Q: What type of relationship do your segments expect to establish with them? Which ones have you established?

29. 9 building blocks Osterwalder & Pigneur (2010): Business Model Generation key activities key partners key resources cost structure revenue streams channels customer relationships customers

30. key resources

31. key resources Physical Intellectual Human Financial

32. iPod key resources Q: What key resources does your value proposition require?

33. key activities

34. key activities Production Problem solving Platform/Network

35. iPod key activities Q: What key activities does your value proposition require?

36. key partnerships

37. key partnerships Motivations for creating partnerships: Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources and activities

38. iPod key partnerships Q: Who are your key partners/suppliers?

39. efficiency vs. value left canvas EFFICIENCY right canvas VALUE

40. 9 building blocks Osterwalder & Pigneur (2010): Business Model Generation key activities key partners key resources cost structure revenue streams channels customer relationships customers

41. revenue streams Asset sale Usage fee Subscription fee Lending/Renting/Leasing Licensing Brokerage fees Advertising cost structure Cost-driven Value-driven Fixed costs Variable costs Economies of scale Economies of scope

42. iPod canvas

43. how to use this model? (testimonials) Translate your business plans into the business processes I used the canvas to do a reality check for my new startup Allowed me to establish a common language and framework with colleagues Assists me to remind the teams to think holistically

45. questions For whom are you creating value? Who are your most important customers? What value do you deliver? Which problems are you helping to solve/which needs are you satisfying? What type of relationship do your segments expect to establish with them? Which ones have you established? Through which channels do your customer segments want to be reached? How are you reaching them now? What key activities does your value proposition require? What key resources does your value proposition require? Who are your key partners/suppliers? For what value are your customers really willing to pay? How are they currently paying? What are your most important costs? Which key resources/activities are most expensive?