The document outlines the 'Business Model Canvas,' detailing components such as customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. It emphasizes the importance of understanding customer needs and optimizing the business model for competitive advantage, using Apple's iPod/iTunes model as an example of effective integration. Additionally, it includes a practical exercise for participants to create business models tailored to specific customer segments.

1. Workshop
“Business Model Generation”
Preview SPM E-Class
LPIK ITB | 23 Maret 2012
Panji Prabowo | @panjiprabowo

4. The Business Model Canvas

6. The Business Model Canvas

7. The Business Model Canvas

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Customer Segments
An organization serves
one or several Customer
Segments
o Different groups of people or organisations an
enterprise aims to reach and serve
o Segments with common needs, common
behavior or other attributes
o Important decision about which segments to
serve and which segments to ignore
 design of Business Model around a
strong understanding of specific
customer needs
The heart of any Business Model

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Customer Segments
For whom we are creating value?
Customer groups represents 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 profitabilities
 they are willing to pay for a different aspect of the
offer

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Value Propositions
It seeks to solve customer problems and satisfy customer
needs with value propositions.
o A selected bundle of products and/or services
that caters the requirements of a specific
Customer Segment
o A aggregation or a bundle of benefits and value
 It solves a problem or satisfies a
customer need
Newness,
Performance, “getting
job done”,
customization, design,
brand/status, value,
accessibility,
The reason why customers choose a supplier usabiility, etc

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Channels
Value Propositions are delivered to customers
through communication,
distribution, and Sales Channels.
o Raising awareness among customers about a
company's product and services
o Helping customers to evaluate a company's
Value Proposition
o Delivering a Value Proposition to customers
 Reaching Customer Segments
How to deliver a Value Proposition

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Channels

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Customer Relationships
Customer relationships are established and maintained
with each Customer Segment.
o Serving the expectation of each Customer
Segment - establish and maintain relationships
o Calculating the costs of relationship
o Several categories of Customer Relationship
o Personal assistance
o Automated services
o Communities
 Integration with the
rest of the Business Model
The overall customer experience

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Revenue Streams
Revenue streams result from Value
Propositions successfully offered to
customers.
o Value for what each Customer Segment is
truly willing to pay
o Each Revenue stream could have different
pricing mechanisms
o Two types:
o Transaction revenues from one-time
customer payment
o Recurring revenues from ongoing business
 Cash a company generates from each
Customer Segment
The arteries of the Business Model

15. Modular Training
Revenue Streams Concept Innovation

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Key Resources
Key resources are the assets
required to offer and deliver the
previously described elements…
o Depending on the type of Business Model
o Can be physical, financial, intellectual or
human
 Base to create and offer a Value
Proposition, reach markets, maintain
relationships with Customer Segments
and earn revenues
Most important assets to bring a Business Model to life

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Key Activities
Key resources are the assets required to offer and deliver the
previously described elements…
…by performing a number of Key Activities.
o Actions for the success of a company
o Production
o Problem solving
o Platform/network-related
 Required to create and offer a Value
Proposition, reach markets, maintain
relationships with Customer Segments
and earn revenues
Most important things to make a Business Model work

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Key Partners
Some activities are outsourced and some resources are
acquired outside the enterprise.
Alliances to optimize Business Models, to
reduce risks or acquire resources
 Partnerships to strengthen the
position in the competitive
surrounding
Network of suppliers and partners that make the Business Model
work

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Cost Structure
The business model elements
result in the cost structure.
o All costs incurred to operate a Business
Model
o Classes of Cost Structures
o Cost-driven (-> the leanest possible Cos
Structure)
o Value-driven (-> focus on value
creation)
 Definition follows the Business Mode
Costs should be optimized in every Business Model

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Business Model Environment: Context,
Modular Training
Concept Innovation
Design Drivers, and Contraints

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Modular Training
Concept Innovation

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Apple iPod/iTunes Business Model

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Apple iPod/iTunes Business Model
 iPod launched in 2001 as stand alone product – users could
copy their CDs and download music from the Internet
 iTunes Music Store introduced in 2003 – users could buy and
download digital music
 iPhone introduced in 2008 – users could browse, buy and
download applications directly from iTunes store

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Apple iPod/iTunes Business Model
 Combination of iPod devices, iTunes software and Apple’s
online store  dominant market position
 Competitors of portable media players (e.g. Diamond
Multimedia) failed to have success  Why?
Answer: Business Model is important
• Distinct iPod design
• Deals with major record companies to create world’s largest
online music library
Today Apple earns most of its music-related revenues from selling
iPods, while using integration with the online music store to protect
itself from competitors.

25. Apple iPod/iTunes Business Model

26. Lets Try!!

27. Bentuk 3 Kelompok lalu...
• Buat model bisnis yang CS-nya mahasiswa ITB!
• Buat model bisnis yang VP-nya GRATIS!
• Buat model bisnis apa saja terserah anda!

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Modular Training
Concept Innovation
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