Module 2 Business Model Canvas

BMC developed by

Alexander Osterwalder

Simply a plan describing how a business intends to make money. It explains who your customer base is and how you deliver value to them and the related details of financing.

Business Model

____________ is either a one-size-fits-all model, common in the industry or it is a random amalgamation of systems and processes, created at the spur of the moment to further the main goal; sell the product or service.

Business Model

Provides a holistic view of the business as a whole and is especially useful in running a comparative analysis on the impact of an increase in investment may have on any of the contributing factors.

Business Model Canvas

ensure reliable supplies

Buyer-supplier relationships:

This block is to describe how your company will communicate with and reach out to your customers. Are the touch points that let your customers connect with your company.

Channels

strategic partnership between partners

Coopetition

in this block, you will classify all the costs associated with in your business. You'll need to emphasis on appraising the cost of generating and distributing your value propositions, creating revenue streams, and continuing customer relationships.

Cost structure

In this section, you need to establish the type of relationship you will have with each of your customer segments or how you will interact with them throughout their journey with your company.

Customer Relationship

These are the groups of people or companies that you are trying to target and sell your product or service to.

Customer Segment

Why you need business model canvas

Devoid of unnecessary details Easier to refer to and understand Easily shared with employees and Stakeholders Can be used by large corporations as well as startups with just a few employees. Clarifies how different aspects of the business are related to each other. Guide a brainstorming session on defining your business model effectively.

T/F The last thing that an entrepreneur was 'expected' to do was to create a business plan outlining the key opportunities, activities and strategies, as well as initial financial projections for the business. I

F

TYPE OF COSTS

Fixed Costs: costs that remain the same over a period of time Variable Costs: as the name suggests, these costs vary according to a variance in production Economies of Scale: costs decrease as production increases Economies of Scope: costs are decreased by investing in businesses related to the core product.

3 advantages of BMC

Focus Speed and Agility Common Language

partners developing a new business

Joint ventures

In this section, you should list down all the activities you need to do to make your business model work.

Key Activities

are the external companies or suppliers that will help you carry out your key activities. These partnerships are forged in order to reduce risks and acquire resources. are the network of suppliers and partners who complement each other in helping the company create its value proposition

Key Partners

9 Block or Components of the BMC

Key Partnerships Key Resources Key Activities Values Proposition Customer Market Segment Customer Relationships Channels Cost Structure Revenue Streams

the main inputs you need to carry out your key activities in order to create your value proposition. This gives you a clear idea of what final product or service your company needs to create for the customer and which resources are dispensable, resulting in cost savings for your company.

Key Resources

Types of Market Segment

Niche Mass Segmented Diversified Multi-sided

Several Types of Customer Relationship

Personal Assistance Dedicated Personal Assistance Self Service Automated Services Communities Co-creation

3 categories of Key Activities

Production Problem-solving Platform/ Network

Value Proposition Types

Quantitative: this stresses the price or efficiency of the product or service Qualitative: this value proposition highlights the experience and results the product and its use, produce.

are the sources from which a company generates money by selling their product or service to the customers. And in this block, you should describe how you will earn revenue from your value propositions.

Revenues streams

partnership between non-competitors

Strategic Alliance

T/F Businesses can either be cost-driven (focuses on minimizing costs whenever possible) and value-driven (focuses on providing maximum value to the customer).

T

T/F With a one-page business model canvas acting as the strategic undergirding for your roadmap, you'll always be able to quickly spot any items or plans that need updating whenever priorities change or new realities demand that you adjust your approach.

T

In this building block, this is at the heart of the business model canvas. Since this will it signifies your exceptional solution (product or service) for a problem faced by a customer segment, or that creates value for the customer segment.

Value Proposition

The medium through which an organization provides its value proposition to its customer segment is known as a

channel