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    Business Model Canvas

    Uploaded by

    Arshad Ullah
    The document introduces the Business Model Canvas, which is a strategic management template for developing new or documenting existing business models. It breaks down a business model into nine building blocks including key partners, activities, resources, customer segments, value propositions, channels, customer relationships, revenue streams, and cost structure. The business model canvas provides a visual chart to help analyze and understand the elements involved in a company's business model.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Business Model Canvas

    Uploaded by

    Arshad Ullah
    343 views26 pages
    The document introduces the Business Model Canvas, which is a strategic management template for developing new or documenting existing business models. It breaks down a business model into nine building blocks including key partners, activities, resources, customer segments, value propositions, channels, customer relationships, revenue streams, and cost structure. The business model canvas provides a visual chart to help analyze and understand the elements involved in a company's business model.

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    The document introduces the Business Model Canvas, which is a strategic management template for developing new or documenting existing business models. It breaks down a business model into nine building blocks including key partners, activities, resources, customer segments, value propositions, channels, customer relationships, revenue streams, and cost structure. The business model canvas provides a visual chart to help analyze and understand the elements involved in a company's business model.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    343 views26 pages

    Business Model Canvas

    Uploaded by

    Arshad Ullah
    The document introduces the Business Model Canvas, which is a strategic management template for developing new or documenting existing business models. It breaks down a business model into nine building blocks including key partners, activities, resources, customer segments, value propositions, channels, customer relationships, revenue streams, and cost structure. The business model canvas provides a visual chart to help analyze and understand the elements involved in a company's business model.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26
    At a glance
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    The key takeaways are the 9 building blocks of a business model which are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.

    The 9 building blocks are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.

    A company communicates and reaches its customers through channels. Channels can be direct like personal assistance or indirect like advertising. The text discusses direct and indirect channels.

    Business Model

    Canvas
    Alexander Osterwalder
    “A business model describes the

    About
    rationale of how an organization
    creates, delivers, and captures
    value”
    9
    Building Blocks
    9
    Building Blocks
    Different groups of people or
    organization an enterprise aims to
    reach and serve.

    -Mass market
    -Niche market
    Customer -Segmented
    -Diversified
    Segments Multi-sided Platforms

    Questions?

    For Whom we are creating value?


    Our most important customers?
    Bundle of products or services that
    create value for a specific Customer
    Segment

    Elements which contribute to

    Value
    customer value creation:

    -Newness
    Proposition -Performance
    -Customization

    Questions:

    Which problems are we solving?


    What value are we delivering?
    How a company communicates with
    and reaches its Customer Segments to
    deliver it Value Proposition

    Channel Types:

    Channels -Direct Channels


    -Indirect Channels

    Questions?

    -Through which channels we reach?


    -How are we reaching them now?
    Type of relationship a company
    establishes with its Customer
    Segments

    -Personal assistance

    Customer -Dedicated Personal assistance


    -Self-service
    Relationships -Automated Services

    Questions?

    What types of relationship customers


    expect us to establish and maintain
    with them?
    Represents the cash a company

    Revenue generates from each Customer


    Segment
    Streams Transaction revenues v/s Recurring
    revenues
    Key Questions to ask:

    For what value are our customers


    really willing to pay?

    Revenue For what do they currently pay?

    Streams How are they currently paying?

    How would they prefer to pay?

    How much does each Revenue Stream


    contribute to overall revenues?
    Ways to generate revenue streams:

    Asset Sale

    Usage Fee

    Revenue
    Subscription fee

    Lending/Renting/Leasing
    Streams Licensing

    Brokerage

    Advertising

    Donations and Govt funding


    Revenue
    Streams
    Most important assets required to
    make a business model work

    Balance Sheet Resources:

    - Current resources

    - Productive resources
    Key Resources - Intangible resources

    Other non-Balance Sheet Resources

    Questions?

    What key resources do our Value


    Proposition require?
    Most important things a company
    must do to make its business model
    work

    -Production
    -Problem Solving
    Key Activities -Platform/Network

    Questions?

    -What key activities do our Value


    Proposition require?
    -Our distribution channel require?
    Porter argues that the performance of each activity is a potential source
    of competitive advantage, either by its performance at a lower cost or by
    delivering superior buyer value and hence differentiation (Porter 1985, p.
    39)
    Network of suppliers and partners
    required to make the business model
    work

    3 motivations for creating

    Key
    partnerships:

    -Optimization and economies of scale


    Partnerships -Reduction of risk and uncertainty
    -Acquisition of particular resources

    Questions?

    Who are our key partners?


    Who are our key suppliers?
    All costs incurred to operate a
    business model

    Key Questions

    What are the most important costs


    Cost Structure inherent in our business model?

    Which Key Resources are most


    expensive?

    Which Key Activities are most


    expensive?
    Business Model Cost Structures:

    Cost-driven v/s Value-driven

    Characteristics of Cost structures:

    - Fixed Costs
    Cost Structure - Variable Costs

    - Economies of Scale

    - Economies of Scope
    9
    Building Blocks
    9
    Building Blocks
    Examples
    9
    Building Blocks
    9
    Building Blocks
    9
    Building Blocks

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