business modeling intro
DESCRIPTION
Describes how your business makes moneyTRANSCRIPT
Business Modeling Introduction
What is a Business Model ?
Describes how your business makes money
“ ”
How does this help me?
How do we describe a business model?
... no common language
How do we communicate a business model?
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• Etiam at arcu. Vestibulum lacinia nunc in eros. Suspendisse potenti. Aliquam erat volutpat. Donec gravida. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Maecenas vel enim et metus semper fringilla. Donec ornare arcu. Maecenas faucibus ligula convallis nibh. Mauris dui quam, congue eu, commodo nec, tristique in, enim. Nulla auctor semper urna. Quisque a elit eu purus iaculis vestibulum. Aliquam dictum risus at odio. Fusce at lorem et elit faucibus placerat. Aenean velit. Proin elit odio, blandit et, scelerisque quis, pulvinar a, dui. Nunc magna dolor, bibendum ut, accumsan congue, tincidunt sit amet, neque. Proin consequat tincidunt lacus. In urna dui, congue nec, tincidunt sit amet, facilisis imperdiet, lorem.
• Morbi sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat fringilla. Cras magna risus, placerat eget, egestas consectetuer, ornare vel, felis. Nam ornare justo id orci mattis ultricies. Morbi luctus. Ut pretium odio ac libero. Nunc sollicitudin pharetra lorem. Aenean scelerisque, lacus eget ullamcorper scelerisque, ipsum urna viverra mi, eget viverra quam eros eget velit. Ut lacinia feugiat purus. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Etiam nunc nisl, aliquam blandit, luctus id, commodo laoreet, sem. Phasellus sit amet orci ut sapien vulputate pellentesque. Pellentesque dapibus purus et quam. Nam sit amet magna in neque dignissim sodales. Aenean non justo nec magna lobortis volutpat.
Strategy Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras in tortor. Sed posuere erat. Maecenas pulvinar nulla eu magna. Vivamus semper, risus ut egestas pulvinar, lectus ante feugiat quam, sit amet congue odio lacus ac ipsum. Aliquam suscipit, est ut volutpat vulputate, nulla felis pulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros nec diam. Vivamus sem arcu, imperdiet nec, congue ac, scelerisque vel, nulla. Donec et mauris. Integer a nulla vulputate pede consequat euismod. Praesent molestie urna nec leo. Proin eros. Maecenas ac sem nec dui sodales tempus. Maecenas suscipit egestas velit. Suspendisse vel tortor. Proin imperdiet, sem nec aliquet ultrices, nunc est egestas eros, non hendrerit magna eros eget augue. Maecenas sed leo vitae leo faucibus vulputate. Proin dignissim eros at augue. Nam luctus nulla non nibh. Nam at lorem ac mauris laoreet viverra. In placerat consequat nunc. Donec rhoncus nunc ac urna. Integer vestibulum condimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tincidunt et, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitae purus. Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tincidunt blandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque.
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... in improper ways
How do we measure the success of a business model?
...well, we don’t
How do we change an existing business model and innovate?
... (re)inventing the wheel
the right equipment!
...obviously a tool is needed...
Business Model Canvas
A common “language”, tool to describe, evaluate and change
business models
The business model describes:
how the business creates value
how the business delivers value
how the business realizes value
Building blocks 9
BUSINESS MODEL "CANVAS:"
CUSTOMER SEGMENTS"
Different groups of people or organizations which we want to reach and serve"
www.businessmodelgeneration.com
Customer Segment"
If they require different:"• Value proposition"• Aspects of the offer"• Channels"• Relationships"• Profitability"
…they may represent a separate segment"
VALUE PROPOSITION"
the unique bundle of products and services which has value for the target customer"
www.businessmodelgeneration.com
Attributes of the value proposition ""• Novelty"• Performance (tech specs)"• Customization"• “Getting the job done”"• Design"• Brand/Status"• Price"• Cost reduction"• Risk reduction"• Accessibility"• Convenience/usability"
CHANNELS"
how do we communicate with and reach the target customer"
www.businessmodelgeneration.com
Channels are for…""• Raising awareness"• Helping customers evaluate your “gift”"• Allowing customers to purchase your “gift”"• Delivering the “gift”"• Providing post-purchase customer support"
Could be:"• owned Channels"• partner Channels"
CUSTOMER RELATIONSHIPS"
type of relationships we have to establish with the target customer"
www.businessmodelgeneration.com
Types of relationships""• Transactional, one-time "• Long-term, repetitive"• Individual approach"• Preferential individual approach"• Self-service"• Automated service"• Building a community"• Co-creation "• Switching costs"
REVENUE STREAMS"
feasible revenue streams, through which the business will make money"
www.businessmodelgeneration.com
Types of revenue streams?"
"• Sale of assets"• “Pay per view”"• Subscription "• Rent/Lease"• Licensing"• Commission"
KEY RESOURCES"
The key «assets» the company needs for the business model to work"
www.businessmodelgeneration.com
Types of resources?"
"• Physical"• Intellectual property"• Financial "• Human resources"
KEY ACTIVITIES"
the key activities the company must perform well for the business model to work"
www.businessmodelgeneration.com
Types of activities"
"• Production"• Problem solving"• Platform/network "
KEY PARTNERS"
network of suppliers and partners, without which the business model wonʼt work"
www.businessmodelgeneration.com
Why should we create partnerships?"
"• Optimization and savings in scope/range"• Reduction of the risk"• Access and acquisition of resources"
COST STRUCTURE"
the essential costs without which the business model wonʼt work"
www.businessmodelgeneration.com
Cost: types, cost structures, attributes"
"• Cost-driven (structure)"• Value-driven (structure)"• Fixed vs. operational cost (type)"• Economy of scale (attribute)"• Economy of scope(attribute)"
Target Customers"
Key Partners"
Cost Structure"
Revenue Streams"Channels"
Customer"Relationships"
Key Activities"
Key Resources"
Value Proposition"
www.businessmodelgeneration.com
www.businessmodelgeneration.com
VALUE PROPOSITION
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERS SEGMENTS
REVENUE STREAM COST STRUCTURE
KEY ACTIVITIES KEY PARTNERS
KEY RESOURCES
THE CANVAS"
www.businessmodelgeneration.com
Examples
ПРЕДЛОЖЕНИЕ �
КАНАЛИ�
ВЗАИМО-ОТНОШЕНИЯ�
ТАРГЕТ КЛИЕНТ�
ИЗТОЧНИЦИ НА ПРИХОДИ�РАЗХОДНА СТРУКТУРА�
КЛЮЧОВИ �ДЕЙНОСТИ�
КЛЮЧОВИ ПАРТНЬОРИ�
КЛЮЧОВИ РЕСУРСИ�
Приблизително �същата гласова �услуга �
Глобално покритие без ограничения-та на мрежа �
90% ползват безплатно�10% плащат за услугите �
Разходна структура на �софтуерна компания �
Няма инфра- �структура �
Максимално �аутсорсване�
Разработване �на софтуер�Няма поддръж- �ка на мрежа �
Автоматизира- �но масово �къстъмизиране �
Онлайн, евтино �разпростране- �ние на софтуер�
Young people
with average income�
Communicating
ideas and smart
solutions for the home �
Advertising �Catalog�
Stores �
Simple, practical
design at a reasonable
price�
Compliance�
Suppliers relationships�
The Brand IKEA � The franchise
IKEA �
Store management
system�
Suppliers ��IKEA �
Goods and delivery�
Marketing �
Personnel �Selling goods an
d
ideas for the home�
Easy self-service when
choosing, buying and
assembling �
Storage and logistics�
Store and
infrastructure�
Restaurant �
Supermarket �
ПРЕДЛОЖЕНИЕ
КАНАЛИ
ВЗАИМО-ОТНОШЕНИЯ
ТАРГЕТ КЛИЕНТ
ИЗТОЧНИЦИ НА ПРИХОДИ РАЗХОДНА СТРУКТУРА
КЛЮЧОВИ ДЕЙНОСТИ
КЛЮЧОВИ ПАРТНЬОРИ
КЛЮЧОВИ РЕСУРСИ
Online retail store
Global consumers
market
Sale discounts
Amazon.com affiliated websites
Individual profiles and
recommendations Logistis
Affiliated websites
Marketing Technology
Content Delivery
Software development and support
Software Supply
infrastructure
Internet !users all !
over the globe!
The network (viral) effect!
3rd parties’ !games and apps!
!the FB platform!
facebook.com!
The largest social platform
“share your stories and content with !the others”!
Software development !and maintenance !
Network development !
Brand! IT infra!
Key talented
engineers
Huge DB and users base !
Paypal!!
Zynga !FarmVille !
Personnel !
IT infrastructure!
Revenue sharing !
with app and game developers!
Advertisers !
Game and app!developers!
Adds revenue!
Targeted !users for adds, games
and apps!
Co-creation: Personalized
profiles!
Internet !users all !
over the globe!
The network (viral) effect!
3rd parties’ !games and apps!
!the FB platform!
facebook.com!
The largest social platform
“share your stories and content with !the others”!
Software development !and maintenance !
Network development !
Brand! IT infra!
Key talented
engineers
Huge DB and users base !
Paypal!!
Zynga !FarmVille !
Personnel !
IT infrastructure!
Revenue sharing !
with app and game developers!
Advertisers !
Game and app!developers!
Adds revenue!
Targeted !users for adds, games
and apps!
Co-creation: Personalized
profiles!
One more example: in Bulgaria
• Using services as individuals– price sensitive • Attracting sponsors-clients to make the price
acceptable for them • The individuals are attracted of a particular value • Sponsors-clients are attracted to a different
value
Students (wanna-preneurs)"Start-upers"
Business model S (segment S)
VALUE PROPOSITION
CHANNELS
CUSTOMERS RELATIONSHIPS
CUSTOMER SEGMENT
REVENUE STREAM COST STRUCTURE
KEY ACTIVITIES KEY PARTNERS
KEY RESOURCES
“Green path” (without sponsors)
Practical and relevant workshops for entrepreneurs, networking
Email and telephone Social media
Social media Direct mailing Presentations and seminars
Students and Start-ups
Workshops Online and offline events
Programs and content Methodology and know-how
Payment (facilitators) Commissions Franchise fees
Participants fees
Cisco Systems Start-UP Foundation AISEC Career centers Local centers of the Cisco Entrepreneur Institute Successful entrepreneurs
Business model based completely on revenue from individuals
VALUE PROPOSITION
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENT
REVENUE STREAM COST STRUCTURE
KEY ACTIVITIES KEY PARTNERS
KEY RESOURCES
“Green path” (with sponsors)
Practical and relevant workshops for entrepreneurs, networking
Media coverage CSR recruitment
Email and telephone Social media
Social media Direct mailing Presentations and seminars Sales contacts and meeting
Students and Start-ups
Medium and large companies
Workshops Online and offline events
Active selling
Programs and content Methodology and know-how
Networking Creating relationships
Payment (facilitators) Commissions Franchise fees Sales fees
Participants fees
Income from sponsorship packages
Cisco Systems Start-UP Foundation AISEC Career centers Local centers of the Cisco Entrepreneur Institute Successful entrepreneurs
Personal relationships
Sales partners mainly from the corporate sector
Business model sponsored by companies and directed completely to individuals
Exercise
Imagine that you become a proud owner of a soccer team…
... describe the business model of your team
describing how a wealth management bank acquires its clients
What value proposition will you offer and to which customer segment?
How do you reach your customers?
How do you build relationships?
How do you make money with this business model?
VALUE PROPOSITION
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENT
REVENUE STREAM COST STRUCTURE
KEY ACTIVITIES KEY PARTNERS
KEY RESOURCS
Business model of your team (example)
Playing spectacular soccer in offence
Website Blog (RSS) VIP events with the team
Stadium and tickets-offices TV channels and cell phones
Fans
Play attractively and win Brand management Video production
Trainers and players Stadium and infrastructure
Team and trainrs Infrastructure and support Marketing Video
Tickets sale
Food and drinks Tickets distribution TV channel Mobile operators Advertising agencies/ media shop Advertisers
TV channels and mobile operators
Advertising
Advertising space and good visibility
Sales people
Personal relationships
Contacts: Svetlan Stanoev [email protected] Tzvetelina Teneva [email protected]