3. Background: StartUp Sector
2013
•200 High Potential StartUps
•350 Entrepreneurs developed
their Business Plans
2014
•Government is focusing on
creating more jobs through
entrepreneurship and start-ups
4. Aim
Aim:
•To introduce the Business Model Canvas Tool
Objectives:
1.Define a Business Model
2.Explore the 9 Building Blocks
of the Business Model Canvas
5. Business Model Definition
A business model describes the rationale of how an
organisation creates, delivers, and captures value
7. A tool for:
•Describing
•Analyzing
•Designing
Business Model
Source: Business Model Generation created by Alexander Osterwalder
http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf
Business Model Canvas
8. Business Model Canvas
Strategic business planning tool with 9 Building Blocks
1. Customer Segments
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partnerships
9. Cost Structure
9. 1. Customer Segments
For whom are we creating value?
Who are our most important
customers?
•Mass Market
•Niche Market
•Segmented
11. 2. Value Proposition
Tries to solve customer problem & satisfy
their needs with value propositions.
•What value do we deliver to the customer?
•Which one of our customer’s problems are
we helping to solve?
•What bundles of products & services are
we offering to each Customer Segment?
•Which customer needs are we satisfying?
13. 3. Channels
Value propositions are delivered to
customers through communication,
distribution, and sales channels.
•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?
14. 3. Channels Phases
Channel Phases
1. Awareness: How to raise awareness about
our company’s products & services?
2. Evaluations: How to help customers
evaluate our organisation's Value
Proposition?
3. Purchase: How to allow customers to
purchase specific products and services?
4. Delivery: How to deliver a Value Proposition
to customers?
5. After sales: How to provide post-purchase
customer support?
19. 4. Customer Relationships
Customer relationships are established
& maintained with each Customer Segment.
•What type of relationship does each of
our Customer Segments expect us to
establish & maintain with them?
•Which ones have we established?
•How are they integrated with the rest
of our business model?
•How costly are they?
21. 5. Revenue Streams
A result from value propositions
successfully offered to customers.
•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?
24. 6. Key Resources
These are the assets required to provide
•Distribution Channels
•Customer Relationships
Types
Physical
Intellectual
(brand patents, copyrights, data)
Human
Financial
26. 7. Key Activities
What Key Activities do our
Value Propositions require?
•Our Distribution Channels?
•Customer Relationships?
•Revenue Streams?
Categories
•Production
•Problem Solving
•Platform/Network
27. Some activities are outsourced &
some resources are acquired outside.
•Who are our Key Partners?
•Who are our Key Suppliers?
•Which Key Resources are we acquiring from partners?
•Which Key Activities do partners perform?
Motivation
Optimisation & economy
Reduction of risk & uncertainty
Acquisition of particular resources & activities
8. Key Partnerships
29. 9. Cost Structure
The business model elements result in the
cost structure
•What are the most important costs?
•Which Key Resources are most expensive?
•Which Key Activities are most expensive?
Is your business more?
Cost Driven (leanest cost structure)
Value Driven (focused on value creation)
Sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
31. What next?
• Test the guesses in the Building Model Canvas
• Get out of the building and talk to customers *
• Only when potential customers validate the idea,
then build the product or service
• Saves time & money
• Or Pivot
*Source: The Four Steps of the Epiphany by Steve Blank
http://web.stanford.edu/group/e145/cgi-bin/winter/drupal/upload/handouts/Four_Steps.pdf
32. Summary
Aim:
• To introduce the Business Model Canvas Tool
Objectives:
1. Define a Business Model
2. Explore the 9 Building Blocks
of the Business Model Canvas
33. Additional Information
YouTube
Business Model Canvas Explained
https://www.youtube.com/watch?v=QoAOzMTLP5s
Business Model Canvas Tutorial Episodes 1 - 6
https://www.youtube.com/watch?v=wwShFsSFb-Y
https://www.youtube.com/watch?v=wlKP-BaC0jA
https://www.youtube.com/watch?v=iA5MVUNkSkM
https://www.youtube.com/watch?v=7O36YBn9x_4
https://www.youtube.com/watch?v=-2gd_vhNYT4
https://www.youtube.com/watch?v=SshglHDKQCc
Catherine Duggan:
gmail: duggancatherine56@gmail.com
Linkedin: ie.linkedin.com/pub/catherine-kearns/40/b4a/126/
