business model generation(ppt)

A business model describes the rationale of how an organization creates, delivers, and captures value

Def_Business Model

Customer Segments

An organization servesone or several Customer Segments.

1:

The 9 Building Blocks

Customer Segments


1: ValuePropositions

It seeks to solve customer problems and satisfy customer needs with value propositions.

2:


Customer Segments




2: Channels

Value propositionsare delivered to customers through communication,distribution, and sales Channels.

3:


Customer Segments




2: Channels

Value propositionsare delivered to customers through communication,distribution, and sales Channels.

3: CustomerRelationships

Customer relationshipsare established andmaintained with eachCustomer Segment.

4:


RevenueStreams

Revenue streams result from value propositionssuccessfully offered to customers.

5:


RevenueStreams


5: KeyResources

Key resources are the assets required to offer and deliver the previouslydescribed elements…

6:


RevenueStreams


5: KeyResources


6: KeyActivities

…by performing a numberof Key Activities.

7:


RevenueStreams


5: KeyResources


6: KeyActivities


7: KeyPartnerships

Some activities are outsourced and someresources are acquiredoutside the enterprise.

8:


RevenueStreams


5: KeyResources


6: KeyActivities


7: KeyPartnerships

Some activities are outsourced and someresources are acquiredoutside the enterprise.

8: CostStructure

The business model elements result in thecost structure.

9:


1: Customer Segments

The Customer Segments Building Block definesthe different groups of people or organizations anenterprise aims to reach and serve.


For whom are we creating value?Who are our most important customers?


For whom are we creating value?Who are our most important customers?

There are different types of Customer Segments.Here are some examples:

Mass marketNiche marketSegmentedDiversifiedMulti-sided platforms (or multi-sided markets)

2: Value Propositions

The Value Propositions Building Block describesthe bundle of products and services that createvalue for a specific Customer Segment

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?


NewnessPerformancesCustomization‘Getting the job done’DesignBrand/status


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?

PriceCost reductionRisk reductionAccessibilityConvenience/usability

A Value Proposition creates value for a Customer Segment through a distinct mix of elements catering to that segment’s needs.

3: Channels

The Channels Building Block describes how acompany communicates with and reaches itsCustomer Segments to deliver a Value Proposition

Through which Channels do our Customer Segmentswant to be reached? How can we reaching them?How can our Channels integrate? Which ones will work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

3: Channels

AwarenessEvaluationPurchaseDeliveryAfter sales

Channels have five distinct phases. Each channel can cover some or all of these phases.

Through which Channels do our Customer Segmentswant to be reached? How can we reaching them?How can our Channels integrate? Which ones will work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

3: Channels

4: Customer Relationships

The Customer Relationships Building Blockdescribes the types of relationships a companyestablishes with specific Customer Segments

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 can they integrate with our business model?


Personal assistanceDedicated personal assistanceSelf-serviceAutomated servicesCommunitiesCo-creation

We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particularCustomer Segment:

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 can they integrate with our business model?


5: Revenue Streams

The Revenue Streams Building Block representsthe cash a company generates from each CustomerSegment (costs must be subtracted from revenues to create earnings)

For what value are our customers really willing to pay?For what do they currently pay? How are they currentlypaying? How would they prefer to pay?

5: Revenue Streams

Asset saleUsage feeSubscription feesLending/Renting/LeasingLicensingBrokerage feesAdvertising

There are several ways to generate Revenue Streams:

For what value are our customers really willing to pay?For what do they currently pay? How are they currentlypaying? How would they prefer to pay?

5: Revenue Streams

5: Revenue Streams

6: Key Resources

The Key Resources Building Block describesthe most important assets required to make abusiness model work

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

6: Key Resources

PhysicalIntellectualHumanFinancial

Key Resources can be categorized as follows:

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

6: Key Resources

7: Key Activities

The Key Activities Building Block describesthe most important things a company must doto make its business model work

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

7: Key Activities

ProductionProblem solvingPlatform/network

Key Activities can be categorized as follows:

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

7: Key Activities

8: Key Partnerships

The Key Partnerships Building Block describesthe network of suppliers and partners that makethe business model work

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

8: Key Partnerships

Optimization and economy of scale

Reduction of risk and uncertainty

Acquisition of particular resources and activities

It can be useful to distinguish between threemotivations for creating partnerships:

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

8: Key Partnerships

9: Cost Structure

The Cost Structure describes all costs incurred tooperate a business model

Cost-driven

Value-driven

Naturally enough, costs should be minimized in every business model. But low Cost Structures are more important to some business models than to others. Therefore it can be useful to distinguish between two broad classes of business model

What are the most important costs inherent in your businessmodel? Which Key Resources are most expensive? Which Key Activities are most expensive?

9: Cost Structure

The nine business model Building Blocks formthe basis for a handy tool, which we call theBusiness Model Canvas.

The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.

Example: Apple iPod/iTunes Business Model

Tips

1: Use Sticky Notes

Use a sticky note for each and every one of the building blocks of your business model. Ideas need to be mobile.

Tips

2: Draw

Use words AND images to describe your business model building blocks to enhance big picture understanding.

Tips

3: Use colours

Increase the clarity of your business model by color-coding all elements related to a specific client segment.

Tips

4: Sketch Alternatives

Don't fall in love with your first idea. Sketch out alternative business models for the same product, service, or technology.

Tips

5: Tell a story

Start from a blank Canvas when you explain your business model. Tell your business model story one sticky note at a time.

Tips

6: Learn from the best

Map out every new and innovative business model you come across. Understand, learn and try to apply to your model.

Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries. Business Model Generation offers you powerful, simple, tested tools for understanding, designing, re-working, and implementing your business model.