The Business Model Canvas

key partners

describe the network of suppliers and partners that make the business model work.

1. physical 2. financial 3. intellectual 4. human

what are the 4 types of key resources?

1. human 2. financial

what key resources do you absolutely have to have on your business model?

revenue streams

represents the cash a company generates from each customer segment.

customer acquisition cost goes into the circle and life time customer value comes out of it.

what goes into the circle (customer relationship) and what comes out of it?

key activities

what most companies must do to make this business model work.

raising awareness help evaluate my value propositions help make purpose deliver the product post-purchase support

what should your channels serve (different functions)?

customer relationships

describes the types of relationships they desire from that particular segment.

customer segments

the different groups of people or organizations that an enterprise aims to reach and serve.

1. customers 2. offer 3. infrastructure 4. financial viability

what are the 4 main areas of business?

1. customer segments 2. value propositions 3. channels 4. customer relationships 5. revenue streams 6. key resources 7. key activities 8. key partners 9. cost structure

what are the 9 building blocks of the business model canvas in order?

demographics behaviors needs

what are the different types of things we should be thinking about for customer segments?

-strategic alliance between non-competitors -co-opetition (cooperation between competition) -joint ventures -buyer/seller relationships

what are the types of key partners?

transactional revenues (1-time transaction) recurring revenues (subscription) -need a blend of both

what do you need a blend of for revenue streams?

1. what type of relationship does each of our customer segment expect to establish with us? (& maintain them). 2. which relationships have we established already and how costly were they?

ask these question for customer relationships.

1. what value are our customers really willing to pay for? 2. for what value are they currently paying for? 3. how are they currently paying? 4. how does this revenue stream contribute to other revenue streams?

ask these questions about revenue streams.

what are the most important costs inherent in our business model? what key resources and activities are our costs most expensive?

ask yourself these questions about cost structure.

1. for whom are we creating value? 2. who are our most important customers?

ask yourself these questions about customer segments

what key resources are required for our value propositions, channels, customer relationships, and revenue streams?

ask yourself this for key resources.

customer acquisition customer retention (to retain customers) boosting sales (cross-scaling/up-scaling) -These are all costs.

customer relationships are driven by the following motivations:

needs justify a distinct offer different channels different relationships

customer segment if:

value propositions

describe the bundle of products and services (benefits) that create value for a specific customer segment.

key resources

describe the most important assets required to make the business model work and they allow the enterprise to create an offer value propositions, reach markets with customer segments, and earn revenues.

cost structure

describes all the cost incurred to create a business model.

channels

describes how does a business communicates and deliver product its customers

sales force web your own retail partner owned stores wholesale

examples of channels?

fixed costs (rent) variable costs economy of scale economy of scope

examples of cost structure.

personal assistant trainer dedicated personal assistant (1 on 1) self-service automated service communities co-creation

examples of customer relationships?

mass market segment niche market diversified multi-sided platforms

examples of customer segments?

production: designing, making and delivering a product in substantial quantities and superior quality. problem solving. network.

examples of key activities.

Physical: facilities, buildings, vehicles, machines. (Wal-mart) Intellectual: brands, IP, patents, copyrights, partnerships. Human: employees Financial: cash, lines of credit, stock options.

examples of key resources.

asset sale usage fee subscription fee lend/lease/rent licensing brokerage fees

examples of revenue streams?

newness performance customization design brand/status price cost reduction

examples of value propositions?

1. cost-driven (minimizing costs) 2. value-driven (premium value)

what are the 2 extremes of cost structure?

1. what value do we deliver to the customer? 2. which one of their problems are we helping them solve? 3. which customer needs are we satisfying?

what are the 3 questions you have to answer for value propositions?