Business Model Canvas
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Business Model Canvas [REF•ER•ENCES] Business Model Generation By Alexander Osterwalder & Yves Pigneur, 2010
Transcript of Business Model Canvas
Business Model Canvas[REF•ER•ENCES]
Business Model GenerationBy Alexander Osterwalder & Yves Pigneur, 2010
Alexander OsterwalderSwiss business theorist, author and consultant
Proposed by
Li WeiTechnology Commercialization ManagerExploit Technologies Pte Ltd (ETPL)Agency for Science, Technology and Research (A*STAR, Singapore)
Presentation by
A shared language for describing, visualizing, assessing, and changing business models
THE BUSINESSMODEL CANVAS
9 Building Blocks
1 Customer Segments 2 Value Propositions 3 Channels 4 Customer Relationships
6 Key Resources 7 Key Activities 8 Key Partnerships 9 Cost Structure5 Revenue Streams
Business model
The rationale of how an organization creates, delivers and captures value
1 Customer SegmentsThe different groups of people or organizations an enterprise aims to reach and serve
Mass market
Niche market
Segmented
Diversified
Multi-sided markets
Different types of Customer Segments
2 Value PropositionsThe bundle of products and services that create value for a specific Customer Segment
Elements contributing to customer value creation
Newness
Performance
Customization
“Getting the job done”
Design
Brand/Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience/Usability
3 Channels
Chan
nel T
ypes Own Partner
Direct Indirect
Salesforce
Websales
OwnStores
PartnerStores
Whole-saler
Chan
nel P
hase
s
1. Awareness
2. Evaluation
3. Purchase
4. Delivery
5. After sales
How a company communicates with the reaches its customer segments to deliver a value proposition
Channel types andtheir five distinct phases
4 Customer RelationshipsThe types of relationships a company establishes with specific Customer Segments
Personal assistance
Dedicated personal assistance
Self-service
Automated service
Communities
Co-creation
Categories of Customer Relationships that may co-exist in a Customer Segment
5 Revenue StreamsThe cash a company generates from each Customer Segments
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
Ways to generate Revenue Streams
5 Revenue StreamsThe cash a company generates from each Customer Segments
Pricing Mechanisms
Fixed Menu Pricing Dynamic Pricing
List Price Negotiation
Product featuredependent
Yieldmanagement
Customer segment dependent
Real timemarket
Volume dependent Auctions
6 Key ResourcesThe most important assets required to make a business model work
Physical
Intellectual
Human
Financial
Categories of Key Resources
7 Key ActivitiesThe most important things a company must do to make its business model work
Production
Problem Solving
Platform/Network
Categories of Key Activities
8 Key PartnershipsThe network of suppliers and partners that make the business model work
Optimization andeconomy of scales
Three motivations for creating partnerships
Acquisition of particularresources and activities
Reduction of riskand uncertainty
9 Cost StructureAll costs incurred to operate a business model
Three motivations for creating partnerships
Class of Business model Cost-driven Value-driven
Characteristics of CostStructures
Fixed costs
Variable costs
Economies of scale
Economies of scope
The nine business model Building Blocks form the basis for a handy tool, which we call the Business Model Canvas
Plot it on a posterand work with your team
LEFT BRAINlogic
RIGHT BRAINemotion
LEFT CANVASefficiency
RIGHT CANVASvalue
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