business model canvas explaination
TRANSCRIPT
Business Model Canvas Explaination
Center for Entrepreneurial DevelopmentIBA – Karachi
What’s A Company?
What’s A Company?
A business organization which sells a product or service in exchange for revenue and profit
How Are Companies Organized?
How Are Companies Organized?
Companies are organized around Business Models
What’s a Business Model?
What’s a Business Model?
A business model describes all the parts of the company necessary to make money
What About My Technology?
What About My Technology?
Your technology is one of the many critical pieces necessary to build a company.
It is part of the “Value Proposition”
What About My Technology?
Customers don’t care about your technologyThey are trying to solve a problem
What’s A Startup?
What’s A Startup?
A startup is a temporary organization designed to search for a repeatable and scalable business model
How to Build A Startup
IdeaBusiness ModelSize Opportunity
Customer Development
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
• Web startups get the product in front of customers earlier
Business Model(s)
Size of the Opportunity
?what is the most powerful about using a shared language, such as the Business Model Canvas?
?What will happen if you don’t have Business Model and you want to discuss you business with your team?
?A business model describes all the parts of the company necessary to make money
?what are those parts? what parts is a business model composed of?
Business Model Canvas
to describe, challenge, design, and invent business models more systematically
building blocks 9
CUSTOMER SEGMENTS
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The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve
Customer groups represent separate segments if:• Their needs require and justify a distinct offer• They are reached through different Distribution Channels• They require different types of relationships• They have substantially different profitabilities• They are willing to pay for different aspects of the offer
For whom are we creating value?
Who are our most important customers?
Different types of Customer Segments
Types of Customer Segments
Mass Market Niche Market Segmented DiversifiedMulti-sided platforms
(or multi-sided market)
VALUE PROPOSITIONS
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“The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment.”
• Some Value Propositions may be innovative and represent a new or disruptive offer.
• Others may be similar to existing market offers, but with added features and attributes.
What value do we deliver to the customer?
Which one of our customer’s problems are we helpingto solve?
Which customer needs are we satisfying?
What bundles of products and services are we offeringto each Customer Segment?
VALUE PROPOSITIONS
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Customer Value Creation List• Newness• Performance• Customization• Getting the job done• Design• Brand/status• Price• Cost reduction• Risk Reduction• Accessibility• Convenience/usability
Values• Quantitative • Qualitative
CHANNELS
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“The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.”
Channels serve several functions, including:• Raising awareness among customers about a company’sproducts and services• Helping customers evaluate a company’s Value Proposition• Allowing customers to purchase specific products and services• Delivering a Value Proposition to customers• Providing post-purchase customer support
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
Channel Types & Phases
CUSTOMER RELATIONSHIPS
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“The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.”
Customer relationships may bedriven by the following motivations:• Customer acquisition• Customer retention• Boosting sales (upselling)
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?
Which ones have we established?
How costly are they?How are they integrated with the rest of our business model?
CUSTOMER RELATIONSHIPS
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Categories of Customer Segments1. Personal Assistance2. Dedicated Personal Assistance3. Self Service4. Automated Service5. Communities6. Co-creation
REVENUE STREAMS
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“The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings)”
A business model can involve two different types of Revenue Streams:1. Transaction revenues 2. Recurring revenues
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
REVENUE STREAMS
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Ways to generate Revenue Stream1. Asset Sale2. Usage fee3. Subscription fees4. Lending/Renting/Leasing5. Licensing6. Brokerage fees7. Advertisemement
Pricing Mechanism
KEY RESOURCES
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“The Key Resources Building Block describes the most important assets required to make a business model work.”
These resources allow an enterprise to:• Create • Offer a Value Proposition• Reach markets• Maintain relationships with Customer Segments• Earn revenues.
What Key Resources do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
KEY RESOURCES
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Key Resources are Categorised into:1. Physical2. Intellectual3. Human4. Financial
KEY ACTIVITIES
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“The Key Activities Building Block describes the most important things a company must do to make its business model work “
These resources allow an enterprise to:• Create • Offer a Value Proposition• Reach markets• Maintain relationships with Customer Segments• Earn revenues.
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
KEY ACTIVITIES
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Key Activities are Categorised into:1. Production2. Problem Solving3. Platform/network
KEY PARTNERS
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“The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work.”
Four different types of partnerships:1. Strategic alliances between non-competitors2. Coopetition: strategic partnerships between competitors3. Joint ventures to develop new businesses4. Buyer-supplier relationships to assure reliable supplies
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
KEY PARTNERS
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Three motivation for creating Partnership1. Optimization and economy of scale2. Reduction of risk and uncertainty3. Acquisition of particular resources and activities
COST STRUCTURE
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“The Cost Structure describes all costs incurred to operate a business model.”
What are the most important costs inherent in our
business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
COST STRUCTURE
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Cost Structures can have the following characteristics: Fixed Cost | Variable Cost | Economies of Scales |Economies of Scope
Business model Cost Structures:1. Cost-driven 2. Value-driven
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customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
images by JAM
But,Realize They’re Hypotheses
9 Guesses
Guess Guess
GuessGuess
GuessGuess
Guess
GuessGuess
CANVAS OVERLAY
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OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
images by JAM
CANVAS OVERLAYOFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
Idea: A renren app that facilities event meeting in China collegesUser size: 20 million college students in China
Serviceable Addressable Market: US$ 100 millionCustomer Interviewed: 154
Online Surveyed: 48
ZiiLion
Sources• Stanford Technology Venture Program• Steve Blank’s Lectures• Chuck Eesley’s Lectures
EXAMPLES
Diabetics
Sweet Sensors Yi Lu, Tian LanNeil KaneChris Sorensen
Business Model Canvas
Clinicians (in rural area)Triage nurses
Pre-diabetics
Product supports
Patient network/community
Retailers (Walgreen)
Online vendors (Amazon)
Direct sales
Disposable test kit (used repeatedly on a regular basis)
At home
Convenient
Less exposure to infectious diseases in the hospitalCheaper
More frequent
Better indicator of health (diabetic management)
Conferences
Product R&DQC
Marketing
IP
Personnel
Glucose monitor manufacturers
Kit manufacturers
Reagent suppliers
Reagents
ManufactureLicensing
FDA certification?
Diabetics
Sweet Sensors Yi Lu, Tian LanNeil KaneChris Sorensen
Action Plan
Clinicians (in rural area)Triage nurses
Pre-diabetics
Product supports
Patient network/community
Retailers (Walgreen)
Online vendors (Amazon)
Direct sales
Disposable test kit (used repeatedly on a regular basis)
At home
Convenient
Less exposure to infectious diseases in the hospitalCheaper
More frequent
Better indicator of health (diabetic management)
Conferences
Product R&DQC
Marketing
IP
Personnel
Glucose monitor manufacturers
Kit manufacturers
Reagent suppliers
Reagents
ManufactureLicensing
FDA certification?
General methodology for adding fluorine to
lead compounds of interest
The Business Model Canvas
Accessibility (RCY)PuritySpeedPET/SPECTMultiplatformSensitivity (nca)Specific compounds
IPPoP dataRegulatory planUnderstanding of the regulatory process
Contract cGMP precursor manufactureSalary, RentsClinical trials
SOPs for precursors and drugsRecruit clinical sitesIn vivo animal studiesDevelop regulatory plan for pre IND meetingID cGMP CROFund-raising
cGMP manufacturerRadiopharmaciesNuclear Medicine and Radiology departments
Technical Assistance (Image Atlas)FDA regulatory support
Radiopharmacies
Equipment producers
Prescribing physicians
Radiologist who perform studies
Sales of intermediates
Technology license
Product license (royalty)
Direct sales of precursor
R&D and clinical studies presented in journals and meetings
Drug developers
Pharmaceutical development companies
IPPoP data
Radiologists
Technical assistance
General methodology for adding fluorine to
lead compounds of interest
The Business Model Canvas
Accessibility (RCY)PuritySpeedPET/SPECTMultiplatformSensitivity (nca)Specific compounds
IPPoP dataRegulatory planUnderstanding of the regulatory process
Contract cGMP precursor manufactureSalary, RentsClinical trials
SOPs for precursors and drugsRecruit clinical sitesIn vivo animal studiesDevelop regulatory plan for pre IND meetingID cGMP CROFund-raising
cGMP manufacturerRadiopharmaciesNuclear Medicine and Radiology departments
Technical Assistance (Image Atlas)FDA regulatory support
Radiopharmacies
Equipment producers
Prescribing physicians
Radiologist who perform studies
Sales of intermediates
Technology license
Product license (royalty)
Drug developers
Pharmaceutical development companies
IPPoP data
Radiologists
Technical assistance
Direct sales of precursor
R&D and clinical studies presented in journals and meetings
Sales of precursor through global finished pharmaceutical distributor