This document discusses the business model canvas created by Alex Osterwalder. It explains the nine blocks of the canvas: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. For each block it provides definitions and questions companies should consider regarding their own business model. It also briefly mentions that Ash Maurya developed the lean canvas as an adaptation of the business model canvas focused on testing business ideas using lean startup practices.

2. The business model
canvas

4. Source: Alex Osterwalder
Customer segments
People or organizations an enterprise aims to
reach.

5. For whom are we creating value?
Who are our most Important customers?
Source: Alex Osterwalder
Customer segments

6. Customer segments
They represent separate segments if
 Their needs require and justify a distinct offer
 They are reached through different distribution
channels
 They require different types of relationship
 They have substantially different profit abilities
 They are willing to pay for different aspects of the
offer
Who are Ikea’s customers?
To whom is Ikea selling its products?

7. Bundle of products and services that create value
for a specific Customer Segment
Value proposition
Source: Alex Osterwalder

8. Value proposition
What value do we deliver to the customers?
Which problem are we helping to solve?
Which customer needs are e satisfying?
Source: Alex Osterwalder

9. Value proposition
Customer value creation
 Getting the job done
 Performance
 Customization
 Design
 Brand
 Price
Ikea?
Source: Alex Osterwalder

10. The way a company communicates with and reach its
customers segments to deliver a value proposition
Source: Alex Osterwalder
Channels

11. Source: Alex Osterwalder
Channels
How do our Customers want to be reached?
Through which channels are we reaching them now?
How are we integrating them with customer routines?

12. Channels
 Raising awareness among customers about
company’s products and services
 Delivering a Value proposition to customers
 Providing post-purchase customer support
Ikea?

13. Describes the types of relationships a company
establishes with a specific Customer Segment.
Source: Alex Osterwalder
Customer relationships

14. Source: Alex Osterwalder
Customer relationships
What type of relationship does each of our
costumer segments expect us to establish and
maintain with them?

15. Source: Alex Osterwalder
Customer relationships
Drivers
• Customer acquisition
• Customer retention
• Boosting sales (upselling)
Ikea?

16. The cash a company generates from each customer
Segment
Source: Alex Osterwalder
Revenue streams

17. For what value are our customers really willing to pay?
How much does each Revenue Stream contribute to
overall revenues?
Source: Alex Osterwalder
Revenue streams

18. Revenue Streams
The different types of revenue streams
 Transaction revenues resulting from one-time
customer payment
 Recurring revenues resulting from ongoing
payments to either deliver a value proposition to
customers or provide post-purchase customer
support
Ikea?

19. The most important assets required to make a
business model work.
Source: Alex Osterwalder
Key resources

20. What Key Resources do our Value Proposition require?
Our Distribution Channels? Customer Relationship?
Revenue Streams?
Source: Alex Osterwalder
Key resources

21. Source: Alex Osterwalder
Key resources
Type of resources
• Physical
• Intellectual
• Human
• Financial Ikea?

22. The most important things a company must do
to make its business model work
Source: Alex Osterwalder
Key activities

23. Source: Alex Osterwalder
Key activities
What Key Activities do our Value Proposition require?
Our Distribution Channels? Customer Relationship?
Revenue Streams?

24. Key activities
Some categories
 Production
 Marketing
 Problem solving
 Network
Ikea?

25. Describes the network of suppliers and partners that make
the business model work
Source: Alex Osterwalder
Key partners

26. Who are our Key Partners/Suppliers? Which Key
resources/activities are we acquiring from partners?
Source: Alex Osterwalder
Key partners

27. Key partners
Motivation for creating partnerships
 Optimization and economy of scale
 Reduction of risk and uncertainty
 Acquisition of particular resources and activities
Ikea?

28. All costs incurred to operate a business model
Source: Alex Osterwalder
Cost structure

29. Source: Alex Osterwalder
Cost structure
What are the most important costs in our business model?
Which Key Resources/Activities are most expensive?
Ikea?

30. Source: Alex Osterwalder

31. Source: Alex Osterwalder

32.  Developed by Ash Maurya in
2012
 Documented in “Running Lean”
 Adaptation of BM canvas
 Focus on learning
 More actionable
 Designed for Web startups

33. Brainstorm possible models
& prioritize
1. Customer Pain Level (Problem/VP)
2. Ease of Reach (Channel)
3. Price/Gross Margin (Revenue Stream/Cost
Structure)
4. Market Size (Customer Segment)
5. Technical feasibility (solution)
Source: Ash Maurya

34. … using lean startup practices
Source: Ash Maurya
Identify the riskiest parts of the model &
systematically test them

35. Case study

36. Questions?