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Business Model Canvas
Expectations?
What actually is a
business model?
   Tell me...
“A business model describes the
rationale of how an organization
creates, delivers, and captures
value”
Customer Segments




People or organizations an enterprise aims to reach.
Customer Segments




For	
  whom	
  are	
  we	
  crea+ng	
  value?	
  
Who	
  are	
  our	
  most	
  important	
  customers?	
  
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.
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 Facebook’s customers? To who is
             Facebook selling its products?
Value Proposition




  Bundle of products and services that create value
         for a specific Customer Segment.
Value Proposition




   What	
  value	
  do	
  we	
  deliver	
  to	
  the	
  customers?	
  
    Which	
  problem	
  are	
  we	
  helping	
  to	
  solve?	
  
    Which	
  customer	
  needs	
  are	
  we	
  sa+sfying?	
  	
  
Value Proposition

Customer value creation:

 ¤ “Getting the job done”;
 ¤ Performance;
 ¤ Customization;
 ¤ Design;
 ¤ Brand;
 ¤ Price
Value Proposition

Customer value creation:

 ¤ “Getting the job done”;
 ¤ Performance;
 ¤ Customization;
 ¤ Design;
 ¤ Brand;
 ¤ Price

                              Facebook?
Channels




The way a company communicates with and reach its
 customers segments to deliver a value proposition.
Channels




Through which channels do our Customer Segments
               want to be reached?
         How are we reaching them now?
How are we integrating them with customer routines?
Channels

¤ Raising awareness among customers about company’s
  products and services;


¤ Delivering a Value proposition to customers


¤ Providing post-purchase customer support
Channels

¤ Raising awareness among customers about company’s
  products and services;


¤ Delivering a Value proposition to customers


¤ Providing post-purchase customer support



                                              Facebook?
Customer Relationships




  Describes the types of relationships a company
  establishes with a specific Customer Segment.
Customer Relationships




  What type of relationship does each of our costumer
segments expect us to establish and maintain with them?
Customer Relationships




   Drivers:

¤ Customer acquisition;
¤ Customer retention;
¤ Boosting sales (upselling).
Customer Relationships




   Drivers:

¤ Customer acquisition;
¤ Customer retention;
¤ Boosting sales (upselling).   Facebook?
Revenue Streams




 The cash a company generates from each customer
                     segment
Revenue Streams




For what value are our customers really willing to pay?
 How much does each Revenue Stream contribute to
                  overall revenues?
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.
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.



                                                     Facebook?
Key resources




The most important assets required to make a business
                   model work.
Key resources




What Key Resources do our Value Proposition require?
 Our Distribution Channels? Customer Relationship?
                 Revenue Streams?
Key resources




¤ Physical;
¤ Intellectual;
¤ Human;
¤ Financial.
Key resources




¤ Physical;
¤ Intellectual;
¤ Human;
¤ Financial.      Facebook?
Key activities




The most important things a company must do to make
             its business model work.
Key activities




What Key Activities do our Value Proposition require?
Our Distribution Channels? Customer Relationship?
                 Revenue Streams?
Key activities

Some categories:

   ¤ Production;
   ¤ Marketing
   ¤ Problem solving;
   ¤ Network.
Key activities

Some categories:

   ¤ Production;
   ¤ Marketing
   ¤ Problem solving;
   ¤ Network.



                         Facebook?
Key partnerships




Describes the network of suppliers and partners that make
                the business model work.
Key partnerships




  Who are our Key Partners/Suppliers? Which Key
 resources/activities are we acquiring from partners?
Key partnerships

Motivation for creating partnerships:
   ¤ Optimization and economy of scale;
   ¤ Reduction of risk and uncertainty;
   ¤ Acquisition of particular resources and activities.
Key partnerships

Motivation for creating partnerships:
   ¤ Optimization and economy of scale;
   ¤ Reduction of risk and uncertainty;
   ¤ Acquisition of particular resources and activities.




                                                        Facebook?
Cost structure




  All costs incurred to operate a business model.
Cost structure




 What	
  are	
  the	
  most	
  important	
  costs	
  inherent	
  in	
  our	
  
                         business	
  model?	
  
 Which	
  Key	
  Resources/Ac+vi+es	
  are	
  most	
  expensive?	
  
Cost structure




                 Facebook?
Loans that change lives
Business Model Prototyping




Napkin	
  Sketch	
     Canvas	
     Business	
  Case	
     Field	
  Test	
  
Business Model Prototyping




Napkin	
  Sketch	
     Canvas	
     Business	
  Case	
     Field	
  Test	
  


              We look for the apropriate
                   business model
Business Model Prototyping




Napkin	
  Sketch	
     Canvas	
     Business	
  Case	
     Field	
  Test	
  


              We look for the apropriate
                   business model
        ...so let’s generate option first!
Interested in knowing more?
Contact me at rafael@startuppirates.org
Credits...
 1.  http://www.businessmodelgeneration.com/
 2.  http://www.slideshare.net/Alex.Osterwalder/what-is-a-
     business-model
 3.  http://www.slideshare.net/Alex.Osterwalder/business-models-
     beyond-profit-social-entrepreneurship-lecture-wise-etienne-
     eichenberger-iqbal-quadir-grameen-bank-grameen-phone

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