BUSINESS MODEL CANVAS

What’s a CANVAS?

It’s a useful tool created to express a BUSINESS MODEL in an effective way…

First introduced by Alex Osterwalder

“Business model innovation is about new ways of creating, delivering and capturing value”

How is CANVAS?…just like a graphic scheme summarizing how a company should create, deliver and capture value

• EXHAUSTIVE: all features of the business are clearly expressed!

• SIMPLE: it’s easy to understand and communicate!

• SHORT: it avoids huge documentations!

How does a CANVAS appear?

The CANVAS structure:

1. Value Proposition

VALUE PROPOSITION

The Value PropositionHow could my company create value?

Performance (better; faster)?Customization?Design?Cost reduction?Risk reduction?Accessibility?Usability?

The CANVAS structure:

2. Customer Segments

CUSTOMER SEGMENT

The Customer SegmentWho’s the consumers subset for whom the created value is higher?

•Their needs are well defined and recognizable;

•They are reached through different distribution channels;

•They require different types of relationships;

•They have substantially different profit abilities;

•They are willing to pay for different aspects than the others;

Customer groups represent separate segments if:

The CANVAS structure:

3. Customer Channels

CUSTOMER CHANNELS

The Customer ChannelsWhich is the best way to deliver and communicate the created value?

It’s about evaluating issues concerning:

• Delivery (web, dealers, sales agents,…)• Awareness • Evaluation • After Sales

The CANVAS structure:

4. Customer Relationship

CUSTOMER RELATIONSHIP

The Customer RelationshipWhat could I do to keep my customer network?

It’s about choices concerning:

• Personal assistance• Automated assistance• Self service• Cooperation or Co-creation

The CANVAS structure:

5. Revenue Streams

REVENUE STREAMS

The Revenue StreamsHow could my company earn money?

It’s about choosing the proper way to make the customer pay:

• Asset sale• Pay per use• Fee• Leasing• Royalties

The CANVAS structure:

6. Key Activities

KEY ACTVITIES

C

The Key ActivitiesWhat must I do to put my business up?

The choice of the steps I should follow depends on the progress level of the startup:

• early idea MVP development andMarket assessment

• Product is ready!

Building up of sales channels

The CANVAS structure:

7. Key Resources

KEY RESOURCES

C

The Key ResourcesWhich resources should I use to make my business successful?

It’s about choosing and then planning the proper set of resources,which could be:• Physical (machineries, raw material) • Intellectual (patents, brand)• Human (developers, managers)• Financial

The CANVAS structure:

8. Key Partners

KEY PARTNERS

C

The Key PartnersWho could I cooperate to create value with?

We can distinguish between four different types of partnerships:• Strategic alliances• Coopetition • Joint Ventures• Buyer-Supplier relationships

The CANVAS structure:

9. Cost Structure

COST STRUCTURE

The Cost StructureWhich are the cost items I will incurr in my business?

They could be classified into:

• Industrial vs Overhead • Fixed vs variable• Accounts departments (production, logistics,

marketing, …)

Where can I find all information?

• Literature

• Personal know how

• Background

• Experts Opinion

• Buyers or other partners

• Customers

Let’s go on with an example…

Everybody knows

How was the business raised? • value proposition?• customer segments?• customer channels?• customer relationship?• revenue streams?• key activities?• key resources?• key partners?• cost structure?

Thanks for your attention and…

Let’s start up our Business Game