Business model generatio1


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9 business model building blocks

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Business model generatio1

  1. 1. Business Model GenerationPart1: Building Blocks
  2. 2. I Got an Awesome Idea
  3. 3. Reality
  4. 4. Business ModelThe corner of success and failure“A business model describes the rationale of howan organization creates, delivers and capturesvalue.”
  5. 5. The 9 Building blocks
  6. 6. I- Customer segments:- Customer groups represent separate segments if (they are interested by different offers, they arewilling to pay for different aspect of the offer, theyare reached thru different distribution channels,they need different types of relationships, theyhave substantial differences in profitability)- Types: mass market, niche market, segmented(credit lines...), diversified (amazon), multi-sidedmarkets.
  7. 7. II- Value proposition- What value do we deliver to the customer?- Which customer problem are we helping to solve?- Which customer needs are we satisfying?- Which bundles, products for each customersegment?- It can be qualitative or quantitative.- Values Types: Newness, performance,customization, getting the job done, design, brandstatus, price, cost reduction, risk reduction,accessibility, convenience-usability
  8. 8. III- Channels- Through which channels do our customer segmentswant to be reached?- How are we reaching them now?- How are our channels integrated?- Which ones work best?- Which ones is most cost –efficient?- How are we integrating them with customerroutines?Channel phases: awareness, evaluation, purchase,delivery and after sales.
  9. 9. IV- Customer relationship- What type of relationship does each of ourcustomer segments expects us to establish?- Which ones have we established?- How costly are they?- How are they integrated with the rest of ourbusiness modelTypes: personal assistance, dedicated personalassistance, self-service, automated services,communities and co-creation
  10. 10. V- Revenue stream- For what value are our customers really willing topay?- For what do they actually pay?- How are they currently paying?- How much does each revenue stream contribute tooverall revenues?- Ways to generate revenue streams: asset sale,usage fee, subscription fees, lending-renting-leasing, licensing, brokerage fees, advertising.Price mechanism: fixed, dynamic.
  11. 11. VI- Key resources- What key resources do our value propositionsrequire? Our distribution channels? Customerrelationships? Revenue streams?Categories: physical/intellectual/human/ financial.
  12. 12. VII- Key activities- What key activities do our value propositionsrequire? Our distribution channels? Customerrelationships? Revenue streams?Production, problem solving platform network
  13. 13. VIII- Key partnershipsWho are our key partners? Who are our keysuppliers, key resources we acquiring, which keyactivities does our partners perform.Motivations: optimization and economy of scale.Reduction of risk and uncertainty, acquisition ofparticular resources and activities.
  14. 14. IX- Cost structure.What are the most important costs inherent in ourbusiness model? Which key resources are mostexpensive/ which key activities are most expensive?Types: Cost driven, value drivenCharacteristics: fixed costs, variable costs, economiesof scale, economies of scope.