BusinessModelCanvas

TathagatVarmah6p://ThoughtLeadership.in

BusinessModel?

“AbusinessmodeldescribestheraAonaleofhowanorganizaAoncreates,deliversandcapturesvalue.”

9BuildingBlocks

Let’sexplore…

CustomerSegments

CustomerSegments

DefinesthedifferentgroupsofpeopleororganizaAonsanenterpriseaimstoreachandserve

Acompanymightgroupthembasedoncommonneeds,commonbehaviors,orothera6ributes

AnorganizaAonmustdecidewhichsegmentstoserveandwhichtoignore

Without(profitable)customers,nocompanycansurviveforlong.

Differentcustomersegmentsif…

TheirneedsrequireandjusAfyadisAnctoffer

TheyarereachedthroughdifferentdistribuAonchannels

TheyrequiredifferenttypesofrelaAonships

TheyhavesubstanAallydifferentprofitabiliAes

Theyarewillingtopayfordifferentaspectsoftheoffer

DifferenttypesofCS

Massmarket

Nichemarket Segmented

Diversified MulA-sided

ValueProposiAon

ValueProposiAon

Describesthebundleofproductsandservicesthatcreatevalueforaspecificcustomersegment

ValuemightbequanAtaAve(i.e.price,speedofservice,etc.)orqualitaAve(design,customerexperience)

ValueProposiAonisthereasonwhycustomerschooseoneproduct/serviceoverothers!

SomemightbeinnovaAve/new/disrupAvewhileothersmightbesimilartoexisAngonesbutwithnewfeaturesoroffers

ExamplesofVP

Newness Performance CustomizaAon Ge\ngthejobdone

Design Brand/status Price CostreducAon

RiskreducAon Accessibility Convenience/usability …

Channels

Channels

DescribehowacompanycommunicateswithandreachesitsCustomerSegmentstodeliveraValueProposiAon

Channelsare“touchpoints”thataffectthecustomerexperience

CommunicaAon,distribuAonandsaleschannelscompriseacompany’sinterfacewithcustomers

FuncAonsofChannels

Raisingawarenessamongcustomersaboutacompany’sproductsandservicesHelpingcustomersevaluateacompany’sValueProposiAonAllowingCustomerstopurchaseacompany’sValueProposiAon

DeliveringaValueProposiAontoCustomer

Providingpost-purchasecustomersupport

Channels

CustomerRelaAonships

CustomerRelaAonships

DescribesthetypesofrelaAonshipsacompanywantstoestablishwithspecificcustomersegments

RelaAonshipscanrangefrompersonaltoautomated,andmaybebedrivenbythefollowingmoAvaAons:•   CustomeracquisiAon•   CustomerretenAon•   BoosAngsales(upselling)

DifferenttypesofcustomerrelaAonshipscanco-existwithaparAcularcustomersegment

TypesofCRs

Personalassistance

Dedicatedpersonalassistance

Self-service

Automatedservice CommuniAes Co-creaAon

RevenueStreams

RevenueStreams

RepresentthecashacompanygeneratesfromeachCustomerSegments

Ifcustomerscomprisetheheartofabusinessmodel,RevenueStreamareitsarteries

Eachrevenuestreammighthaveadifferentpricingmechanism,suchasfixedpricelist,discounts,aucAoning,volumedependent,etc.

TypesofRevenueStreams

TransacAonRevenue,resulAngfromone-Amecustomerpayments

RecurringRevenue,resulAngfromongoingpaymentstoeitheraValueProposiAontocustomers,orprovideapost-purchasecustomersupport

RevenueStreams…

AssetSale Usagefee SubscripAonfees

Lending/RenAng/Leasing

Licensing BrokerageFee

AdverAzing

PricingMechanisms

KeyResources

KeyResources

Describesthemostimportantassetsrequiredtomakeabusinessmodelwork

Differentkeyresourcesareneededbasedonthebusinessmodel

Couldbeownedorleasedbythecompanyoracquiredfromleypartners,andcouldbe-•   physical,•   financial,•   intellectualor•   human

KeyAcAviAes

KeyAcAviAes

Describesthemostimportantthingsacompanymustdotomakeitsbusinessmodelsucceed

Dependonthebusinessmodel

Couldinclude

•   ProducAon•   Problemsolving•   Pladorm/network

KeyPartnerships

KeyPartnerships

Describesthenetworkofsuppliersandpartnersthatmakethebusinessmodelwork

CompaniescreatealliancestoopAmizetheirbusinessmodels,reducerisks,oracquireresources

Fourtypesofpartnerships

•   Strategicalliancesbetweennon-compeAtors•   CoopeAAon:strategicpartnershipbetweencompeAtors•   Jointventurestodevelopnewbusinesses•   Buyer-supplierrelaAonshipstoassurereliablesupplies

Whycreatepartnerships?

OpAmizaAonandeconomyofscale

ReducAonofriskanduncertainty

AcquisiAonofparAcular

resourcesandacAviAes

CostStructure

CostStructure

Describesallthecostsincurredtooperateabusinessmodel

Somebusinessmodelsmightbemorecost-intensivethanothers

ClassesofCostStructures

Cost-driven

Value-driven

CharacterisAcs

Fixedcosts Variablecosts

Economiesofscale

EconomiesofScope

SAtchingthemtogether…

BusinessModelCanvas

“Asharedlanguagefordescribing,visualizing,assessing,andchangingbusinessmodels”

h6p://torgronsund.com/wordpress/wp-content/uploads/2011/04/Slide1.jpg

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