Based on

Business Model

Generation

by

Alexander

Osterwalder

The Business Model Canvas

9 Building Blocks Of A Business Model

Customer Segments

the different groups of people ororganizations an enterprise aimsto reach and serve

For whom are we creating value?

Who are our most important

customers?

Customer Segment Types

Mass market

Niche market

Segmented market

Diversified market

Multi-sided platforms

Value Proposition

Value Proposition

The bundle of products andservices that create value fora specific Customer Segment

Value Proposition

What value do we deliver to thecustomer?

Which one of our customer’sproblems are we helping to solve?

What bundles of products andservices are we offering to eachCustomer Segment?

Elements Of Value Proposition

Newness

Performance

Customization

Getting the job done

Design

Brand/status

Elements Of Value Proposition

Price

Cost reduction

Risk reduction

Accessibility

Convenience/usability

Channels

Channels

How a companycommunicates with andreaches its CustomerSegments to deliver aValue Proposition

Channels

Through which Channels do ourCS want to be reached?

Which channels work best?

Which ones are most cost-efficient?

How are we integrating them withcustomer routines?

Channels Types

Sales force

Web sales

Own stores

Partner stores

Wholesaler

Customer Relations

Customer Relations

Describes the types ofrelationships a companyestablishes with specificCustomer Segments

Customer Relations

What type of relationship dowe establish and maintainwith CS?

How costly are they?

How are they integrated withthe rest of our businessmodel?

Customer Relations Types

Personal assistance

Dedicated personal assistance

Self-service

Automated services

Communities

Co-creation

Revenue Streams

The cash a company

Revenue Streams

generates from eachCustomer Segment (costsmust be subtracted fromrevenues to create earnings)

Revenue Streams

For what value are ourcustomers really willing to pay?

For what do they currently

pay?

How are they currently paying?

How much does each RS

contribute to overall revenues?

Revenue Streams Types

Asset sale

Usage fee

Subscription fees

Lending/Renting/Leasing

Licensing

Brokerage fees

Advertising

Key Resources

Key Resources

The most important assetsrequired to make a businessmodel work

Key Resources

What Key Resources do ourValue Propositions require?

Our Distribution Channels?

Customer Relationships?

Revenue Streams?

Key Resources Types

Physical

Intellectual

Human

Financial

Key Activities

Key Activities

The most important things acompany must do to make itsbusiness model work

Key Activities

What Key Activities do ourValue Propositions require?

Our Distribution Channels?

Customer Relationships?

Revenue Streams?

Key Activities Types

Production

Problem solving

Platform/network

Key Partnerships

Key Partnerships

The network of suppliers andpartners that make thebusiness model work

Key Partnerships

Who are our Key Partners?

Who are our key suppliers?

Which Key Resources are we

acquiring from partners?

Which Key Activities dopartners perform?

Partnership Types

Strategic alliances betweennon-competitorsCoopetition: strategic

partnerships betweencompetitors

Joint ventures to develop newbusinesses

Buyer-supplier relationships toassure reliable supplies

Motivations For Creating Partnerships

Optimization and economyof scale

Reduction of risk anduncertainty

Acquisition of particularresources and activities

Cost Structure

Cost Structure

All costs incurred to operate abusiness model

Cost Structure

What are the most importantcosts inherent in our businessmodel?

Which Key Resources aremost expensive?

Which Key Activities are mostexpensive?

Cost Structure Types

Cost-driven

Value-driven

Fixed costs

Variable costs

Economies of scale

Economies of scope