Business Model CanvasHow to innovate a new business model

Based on Business Model Generation by Alex Osterwalder

अभि�जीत मजुमदार

Business Reality• Today countless

innovative business models are emerging. Entirely new industries are forming as old ones crumble.

• Upstarts are challenging the old guard, some of whom are struggling feverishly to reinvent themselves.

A business model describes the rationale of how an

organisation creates, delivers, and

captures VALUE.

Business Model Canvas

• The Business Model Canvas concept allows you to describe and think through the business model of any organisation

• This concept has been applied and tested around the world and is already used in organisations like IBM, Ericsson, Delloite and many others

Business Model Canvas

The 9 Building Blocks

• Customer Segments

• Value Propositions

• Channels

• Customer Relationships

• Revenue Streams

• Key Resources

• Key Activities

• Key Partnerships

• Cost Structure

The 9 Building Blocks

KeyKeyPartnersPartners

KeyKeyActivitiesActivities

KeyKeyResourcesResources

ValueValuePropositionProposition

CustomerCustomerRelationshipsRelationships

ChannelsChannels

CustomerCustomerSegmentsSegments

RevenueRevenueStreamsStreams

CostCostStructuresStructures

The 9 Building Blocks

KeyKeyPartnersPartners

KeyKeyActivitiesActivities

KeyKeyResourcesResources

ValueValuePropositionProposition

CustomerCustomerRelationshipsRelationships

ChannelsChannels

CustomerCustomerSegmentsSegments

RevenueRevenueStreamsStreams

CostCostStructuresStructures

Customer Segments• For whom are we creating

value?

• Who are our most important customers?

• There are different types of Customer Segments like Mass market, Niche Market, Segmented, Diversified, Multi-Sided platforms

• Business models must be designed around a strong understanding of specific customer needs

• The different groups of people or organizations an enterprise aims to reach or serve

Value Propositions

• What value do we deliver to the customer?

• Which one of our customer problems are we helping to solve?

• Which customer needs are we satisfying?

• What bundle of products and services are we offering to each Customer Segment?

The bundle of products and services that create value for a specific Customer

Segment

Channels• 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 the best?

• Which ones are the most cost efficient?

• How are we integrating them with customer routines?

How a company communicates with and reaches its Customer Segments to deliver a

Value Proposition

Customer Relationships

• What type of relationship does each of our Customer Segments 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?

The types of relationships a company establishes with specific Customer Segments

Revenue Streams• 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?

The cash the company generates from each Customer Segment

Key Resources

• What Key Resources do our Value Proposition require?

• Our Distribution Channels?

• Customer Relationships?

• Revenue Streams?

The most important assets required to make a business model work

Key Activities

• What Key Activities do our Value Propositions require?

• Our Distribution Channels?

• Customer Relationships?

• Revenue Streams?

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

Key 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?

The network of suppliers and partners that make the business model work

Cost Structure

• What are the most costs inherent in our business model?

• Which Key Resources are the most expensive?

• Which Key Activities are most expensive?

All Costs incurred to operate a business model

The Business Model Canvas

KeyKeyPartnersPartners

KeyKeyActivitiesActivities

KeyKeyResourcesResources

ValueValuePropositionProposition

CustomerCustomerRelationshipsRelationships

ChannelsChannels

CustomerCustomerSegmentsSegments

RevenueRevenueStreamsStreams

CostCostStructuresStructures

What Should Be My Business Model?