What is a Business Model?

The three qualities of an effective CVP

- Better value than the competition. - Measurable in monetary terms. - It must be sustainable.

Exploring the nine components through an idea for a new retail store that sells trendy T- shirts:

- Customer value proposition. - Customer segments. - Channels. - Customer relationships. Exploring the nine components - Key activities. - Key resources. - Key partners. - Revenue streams. - Cost structure.

The four parts of the BMC

- What the offering constitutes. - What customers relate to. - What the infrastructure includes. - What financial viability means.

What is a Business Model?

1. Describes how a new venture creates, delivers, and captures value. 2. Evidence is gathered from talking to people, investigating, and asking questions. 3. Built over time by collecting evidence that what you are creating works. 4. Startup: Temporary organization in search of a scalable business model. 5. Helps entrepreneurs understand what they are doing.

Four Problems Experienced by Customers

1. lack of time 2. lack of money 3. lack of skills 4. lack of access

Four Problems Experienced by Customers

Customers face problems when it comes to getting a job done. • Lack of time: The example waiting time in hospitals. • Lack of money: Delivering previously unaffordable products or services for less money.

infrastructure

Inclusive of all the resources an an entrepreneur must have to deliver the CVP. - Justin Gold of the nut butter brand created a the competitive advantage using the infrastructure.

Customers

Individuals or businesses willing to pay for what you are offering. - Bryan Bitticks, franchise owner of Great Clips hair salons, created a virtual online experience.

Types of Business Models:

Innovation, disruption, differentiation, and imitation. It- Easier to make quick changes to the business model during the startup stage. - The ability to change business models is not as quick for established organizations.

Design thinking is a collaborative effort

It is business from the customer's viewpoint

The Customer Value Proposition (CVP)

It is the value generated for the customer.

The Business Model

Knowing how a customer intends to create, capture and deliver value. The BMC introduced in 2008.

Jobs, Pain Points, & Needs

Successful CVP: Understanding what the customer wants .- Businesses survive because they successfully answer three questions. - It is about one big benefit. - Credibility in the eyes of the customer. - Dramatic difference relates to uniqueness.

Four interlocking parts of a business model

the offering, customers, infrastructure, financial viability USE • Innovation and advantage over the competition. • Competitive advantage can come from other areas of the business.

Different Types of CVPs and Customer Segments

• Convincing people about a great product. • Problems with marketing and execution. • Delineating the value of an idea to meet customer needs

Financial Viability

• Defines the revenue and cost structures a business needs to meet its operating expenses. • A business model is more than a financial model.

Types of Customer Segments definition

• Different CVPs for different customer segments. • Creating a product or service that the customer would be willing to buy.

The Offering

• Identifies what you are offering to a particular customer segment. • Customer value proposition describes what products your business offers. • The "value" part of the CVP: How much your product or service is worth to customers.

Types of Customer Segments

• Mass market: Many customers. • Niche market: Customers with specific needs. • Segmented market: Breaking customer segments into groups. • Diversified market: Variety of services. • Multisided markets: Two or more customer segments

Types of Value Propositions

• The all-benefits approach to CVP . • The points-of-difference approach. • A CVP that stems from the resonating-focus approach.