Busness Model Canvas


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Lecture for StartUP Academy Sofia on Business Model Generation - Business Model Canvas building blocks

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Busness Model Canvas

  1. 1. BUSINESS MODELBUSINESS MODEL CANVASBmBusiness model2BcBusiness modelcanvas2
  3. 3. BUSINESS MODELBased onBusiness ModelGenerationbyAlexanderOsterwalder
  4. 4. BUSINESS MODELThe Bright FutureIt starts with great founder(s)★ good education★ excellent credentials★ killer idea
  5. 5. BUSINESS MODELThe Bright FutureBased on the credentials,research, and plan, they havesecured...VC funding
  6. 6. BUSINESS MODELHow Likely Is To Succeed?Despite the experience,research and plan...
  7. 7. BUSINESS MODEL5 Things Start-ups Should Consider
  8. 8. BUSINESS MODELBusiness Plans“No business plan survivesthe first customer contact.”1Steve Blank
  9. 9. BUSINESS MODELBusiness Plans SuckPlans are for the knownfuture, do not work in thestart-up context
  10. 10. BUSINESS MODELBusiness ModelIt’s the Business Model thatreally matters2
  11. 11. BUSINESS MODELExplain Your Business ModelExplain your business(model) to your seatneighbor!5 min
  12. 12. BUSINESS MODELExplain Your Business ModelHow did it go?
  13. 13. BUSINESS MODELDo You Have A Business Model?“A business model describesthe rationale of how anorganization creates, delivers,and captures value”
  14. 14. BUSINESS MODELThe Business Model Canvas
  15. 15. BUSINESS MODEL9 Building Blocks Of A Business Model
  16. 16. BUSINESS MODELCustomer Segmentsthe different groups of people ororganizations an enterprise aimsto reach and serveFor whom are we creating value?Who are our most importantcustomers?
  17. 17. BUSINESS MODELCustomer Segment TypesMass marketNiche marketSegmented marketDiversified marketMulti-sided platforms
  18. 18. BUSINESS MODELValue Proposition
  19. 19. BUSINESS MODELValue PropositionThe bundle of products andservices that create value fora specific Customer Segment
  20. 20. BUSINESS MODELValue PropositionWhat value do we deliver to thecustomer?Which one of our customer’sproblems are we helping to solve?What bundles of products andservices are we offering to eachCustomer Segment?
  21. 21. BUSINESS MODELElements Of Value PropositionNewnessPerformanceCustomizationGetting the job doneDesignBrand/status
  22. 22. BUSINESS MODELElements Of Value PropositionPriceCost reductionRisk reductionAccessibilityConvenience/usability
  23. 23. BUSINESS MODELChannels
  24. 24. BUSINESS MODELChannelsHow a companycommunicates with andreaches its CustomerSegments to deliver aValue Proposition
  25. 25. BUSINESS MODELChannelsThrough which Channels do ourCS want to be reached?Which channels work best?Which ones are most cost-efficient?How are we integrating them withcustomer routines?
  26. 26. BUSINESS MODELChannels TypesSales forceWeb salesOwn storesPartner storesWholesaler
  27. 27. BUSINESS MODELCustomer Relations
  28. 28. BUSINESS MODELCustomer RelationsDescribes the types ofrelationships a companyestablishes with specificCustomer Segments
  29. 29. BUSINESS MODELCustomer RelationsWhat type of relationship dowe establish and maintainwith CS?How costly are they?How are they integrated withthe rest of our businessmodel?
  30. 30. BUSINESS MODELCustomer Relations TypesPersonal assistanceDedicated personal assistanceSelf-serviceAutomated servicesCommunitiesCo-creation
  31. 31. BUSINESS MODELRevenue Streams
  32. 32. BUSINESS MODELRevenue StreamsThe cash a companygenerates from eachCustomer Segment (costsmust be subtracted fromrevenues to create earnings)
  33. 33. BUSINESS MODELRevenue StreamsFor what value are ourcustomers really willing to pay?For what do they currentlypay?How are they currently paying?How much does each RScontribute to overall revenues?
  34. 34. BUSINESS MODELRevenue Streams TypesAsset saleUsage feeSubscription feesLending/Renting/LeasingLicensingBrokerage feesAdvertising
  35. 35. BUSINESS MODELKey Resources
  36. 36. BUSINESS MODELKey ResourcesThe most important assetsrequired to make a businessmodel work
  37. 37. BUSINESS MODELKey ResourcesWhat Key Resources do ourValue Propositions require?Our Distribution Channels?Customer Relationships?Revenue Streams?
  38. 38. BUSINESS MODELKey Resources TypesPhysicalIntellectualHumanFinancial
  39. 39. BUSINESS MODELKey Activities
  40. 40. BUSINESS MODELKey ActivitiesThe most important things acompany must do to make itsbusiness model work
  41. 41. BUSINESS MODELKey ActivitiesWhat Key Activities do ourValue Propositions require?Our Distribution Channels?Customer Relationships?Revenue Streams?
  42. 42. BUSINESS MODELKey Activities TypesProductionProblem solvingPlatform/network
  43. 43. BUSINESS MODELKey Partnerships
  44. 44. BUSINESS MODELKey PartnershipsThe network of suppliers andpartners that make thebusiness model work
  45. 45. BUSINESS MODELKey PartnershipsWho are our Key Partners?Who are our key suppliers?Which Key Resources are weacquiring from partners?Which Key Activities dopartners perform?
  46. 46. BUSINESS MODELPartnership TypesStrategic alliances betweennon-competitorsCoopetition: strategicpartnerships betweencompetitorsJoint ventures to develop newbusinessesBuyer-supplier relationships toassure reliable supplies
  47. 47. BUSINESS MODELMotivations For Creating PartnershipsOptimization and economyof scaleReduction of risk anduncertaintyAcquisition of particularresources and activities
  48. 48. BUSINESS MODELCost Structure
  49. 49. BUSINESS MODELCost StructureAll costs incurred to operate abusiness model
  50. 50. BUSINESS MODELCost StructureWhat are the most importantcosts inherent in our businessmodel?Which Key Resources aremost expensive?Which Key Activities are mostexpensive?
  51. 51. BUSINESS MODELCost Structure TypesCost-drivenValue-drivenFixed costsVariable costsEconomies of scaleEconomies of scope
  52. 52. BUSINESS MODELBusiness Model Building Blocks
  53. 53. BUSINESS MODELBusiness Model Building Blocks
  54. 54. BUSINESS MODELBusiness Model Building Blocks
  55. 55. BUSINESS MODELBusiness Model Building BlocksHOW WHAT WHOHOW MUCH
  56. 56. BUSINESS MODELBusiness Model Canvas
  57. 57. BUSINESS MODELBusiness Model Canvas
  58. 58. BUSINESS MODELPossible AlternativesTake time to think throughalternative possibilities.3
  59. 59. BUSINESS MODELThe Art Of PivotingThe same technology,product, or service can havenumerous business models
  60. 60. BUSINESS MODELThe Art Of Pivoting
  61. 61. BUSINESS MODELHypothesesYour business model idea isjust a set of hypotheses4
  62. 62. BUSINESS MODELTest Your HypothesesYou need to adapt thebusiness model until you canprove it works
  63. 63. BUSINESS MODELHypothesesDon’t build your company, untilyou’ve verified your Business Model5
  64. 64. BUSINESS MODELTest Your HypothesesBuild when you’ve found yourmodel, otherwise you’reburning cash really fast
  65. 65. BUSINESS MODELLet’s put our hands onthe Business Model Canvas NOW