PHRONESIS STRATEGIES - TiE Nagpur - Business Model Canvas - v2 - 020620

Business Model Canvas
2nd June 2020 - Webinar
Customer Experience
CX Solutions

Business Model vs. Strategy
2Copyright © 2020 PHRONESIS STRATEGIES. All Rights Reserved - Strictly Conﬁdential - www.phronesisstrategies.com
Strategic Layer
Business Model
Layer
Process Layer
Levels
Planning
Architectural
Implementation
Vision, Goals,
Objectives
Money Earning
Logic
Organization &
Workflow

BUSINESS MODEL CANVAS
Osterwalder’s 9 Building Blocks

1) Customer Segments
§  Who are the Customers?
§  What do they think? See? Feel? Do?
§  Personas, Segment, Prioritize
§  Segment Dimension – Single or multi-sided market? Eg. Newspaper/ Media Cos.
§  Segment Composition? – Both Buyers and End-Users
§  Problems, Needs, Habits, Current Alternatives?

2) Value Proposition
§  What problems or needs of your customer are you fulfilling?
§  Compelling reasons of why should a Customer buy from you?
§  Why do customers buy, use?
§  Different Value Proposition for different Customer Segments
§  Customer Segment – Value Proposition Linking necessary
§  Less value at very low cost / More value at same cost / Much more value at greater cost?

3) Channels
§  How are you going to promote, sell and deliver your offerings?
§  Why? Is it working?
§  Channels to communicate proposition, and channels to Sell and service.
§  Bricks-n-mortar / Clicks-n-mortar / Direct-to-consumer/ Others?
§  AIDA.OR framework (Attention-Interest-Desire-Action-Onboarding-Retention)
§  Channels - Customer Segment Linking

4) Customer Relationships
§  How do you interact with Customers through their Journey?
§  What do you do to provide a consistent, superior Customer Experience (CX)?
§  Excellent Customer service
§  Seamless, Hassle-free and easy Customer Journey
§  Quick and satisfactory resolution of complaints, disputes, feedbacks, requests
§  Mind-share – Info sharing, right advice etc.

5) Revenue Streams
§  How do you earn Revenue from your Value propositions?
§  Value? Perceived Value?
§  Pricing Models – One-time (Cost-plus/ CPM etc.) / Subscription / Pay-as-you-go /
Freemium / Ad Revenue / Franchisee Fee/ Revenue-sharing / Profit-sharing etc.
§  Revenue Streams – Customer Segments – Value Proposition linking

6) Key Resources
§  Unique Strategic Assets necessary to compete?
§  Should be to a greater degree than the competitors
§  Physical; Intellectual; Human; Financial?
§  Resources may not necessarily be owned, but need easy and flexible access
§  Key Resources – Key Activities linking

7) Key Activities / Processes
§  Strategic things you must do to make the Business Model work?
§  Should be directly relatable to your Value Propositions; If they do not and are not
core and focal to the business, they are not Key Activities
§  Production/ Delivery; Problem Solving; Platform/ Network

8) Key Partnerships
§  What should a company NOT do to focus on its Key Activities, and instead perform
the non-core activities through its Partners?
§  Reasons – Economies of Scale, Reduction of Risk and Uncertainty, and Acquisition
of Resources and Activities
§  Key Activities – Key Partnerships linking

9) Cost Structure
§  Are costs aligned with Value propositions?
§  Fixed or Variable? Linear as you scale?
§  Costs Structure - Key Activities linking

2 Critical Tests
§  Does it tell a plausible/ rational
story?
§  Does the story explains how the
business works?
§  Does it explain:
o  Who is the Customer?
o  What does the Customer
Value?
o  How we make money in this
business?
o  How we deliver value at an
appropriate cost?
Narrative Test
§  Exactly how does each element of
the model contributes to revenue/
cost?
§  Demonstrate that total revenue
exceed total cost and generate a
positive Cashflow
Numbers Test

Other Frameworks
§  A key element missing in BMC is Competitors – Use
frameworks like Porter’s 5 Forces etc. to analyze competition
§  Other Strategy Frameworks one can use in addition to BMC:
o  McKinsey 7S Framework
o  BCG Growth/ Share Matrix
o  PESTEL
o  Strategy Clock
o  SWOT Analysis and TOWS Matrix
o  VRIN Analysis
o  SAFe Analysis
o  3Cs
o  4Ps
o  Value Discipline etc.

17
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Copyright © 2020 PHRONESIS STRATEGIES. All Rights Reserved - Strictly Conﬁdential - www.phronesisstrategies.com
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India
: +91-712-2454809
: contact@phronesisstrategies.com
Key Management Contact
VYOM SHAH
Founder & CX Director
+91-9158852515
vyom.shah@phronesisstrategies.com
/phronesis_cx
@PhronesisCX
Customer Experience
CX Solutions

PHRONESIS STRATEGIES - TiE Nagpur - Business Model Canvas - v2 - 020620

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