Business Model Canvas

Transcription

1 Business Model Canvas 1-1 Customer Segments Defines the different groups of people or organizations to serve Separate segments if: Needs require and justify distinct offer Reached through different channels Require different types of relationships Are willing to pay for different aspects Have different profitabilities 1-2 1

2 Customer Segments Customer segments may exist in different types Mass market One large group comprising only one segment Niche market Specific, specialized customer group Segmented Slightly different customer groups Diversified Multiple unrelated customer segments Multi-sided markets 1-3 Customer Segments 1-4 2

3 Value Proposition Describes the bundle of products or services that create value for a specific customer segment What value do we deliver to the customer? Which customer needs are we satisfying? What are we offering to each customer segment? 1-5 Value Proposition Value propositions exist in quantitative and qualitative areas Quantitative : Price Cost reduction Risk reduction Convenience Usability Qualitative Newness Performance Design Brand Customization 1-6 3

4 Value Proposition Qualitative Newness Performance Design Brand Customization 1-7 Value Proposition - APPLE Qualitative Newness Performance Design Brand Customization 1-8 4

5 Channels Describes how a company communicates with and reaches its customer segments to deliver a value proposition 1. Raising awareness of the products and services 2. Helping customers evaluate the value proposition 3. Allowing customers to purchase 4. Delivering a value proposition 5. Providing post-purchase customer support 1-9 Channels Channels demand consideration of key questions Through which channels do our customer segments want to be reached? How can we integrate our channels? What measures define which channels work best?

6 Channels - Google 1-11 Customer Relationships Describes the types of relationships a company establishes with specific customer segments Driven by motivations to include: Customer acquisition Customer retention Upselling

7 Customer Relationships 1-13 Customer Relationships

8 Revenue Streams Represents the cash a company generates from each Customer Segment Revenues Costs = Profits Types of revenue streams Transaction revenues resulting from one-time customer payments Recurring revenues resulting from ongoing payments to either deliver a value proposition to customers and/or provide post-purchase customer support 1-15 Revenue Streams Revenue stream opportunities require you to ask several core questions For what value are customers really willing to pay? For what do they currently pay (competitors)? How will this change in the future? Ways to generate revenue streams Buying (asset sale) Renting Subscription Licensing Advertising

9 Revenue Streams 1-17 Revenue Streams

10 Key Resources Describes the most important assets required to make a business model work Can be physical, financial, intellectual, or human Key resources can be owned or leased by the company or acquired from key partners 1-19 Key Resources

11 Key Activities Describes the most important things a company must do to make its business model work For PC manufacturer Dell, key activities include supply chain management. For consultancy McKinsey, key activities include problem solving Key Activities - Categories Production Designing, making, and delivering a product in substantial ti quantities and/or of superior quality Problem solving Coming up with new solutions to individual customer problems Platform/network Networks, matchmaking platforms, software, and even brands can function as a platform. Activities relate to platform management, service provisioning, and platform promotion

12 Key Activities 1-23 Key Partnerships Describes the network of suppliers and partners that make the business model work Types of partnerships: Strategic alliances between non-competitors Joint ventures to develop new businesses Buyer-supplier relationships Coopetition: strategic partnerships between competitors

13 Motivations to Partnerships Optimization and economy of scale Most basic form of partnership or buyer-supplier relationship designed d to optimize i resources and activities (i.e. reduce cost). Acquisition of particular resources and activities Extend capabilities by relying on other firms to furnish particular resources or perform certain activities Motivated by needs to acquire knowledge, licenses, or access to customers Reduction of risk and uncertainty 1-25 Key Partners - APPLE

14 Cost Structure Describes all costs incurred to operate a business model Creating and delivering value, maintaining customer relationships, and generating revenue all incur costs Costs can be calculated relatively easily after defining key resources, key activities, and key partnerships 1-27 Cost Structure Cost-driven business models focus on minimizing costs wherever possible. Aims at creating and maintaining the leanest possible cost structure, using low price value propositions, maximum automation, and extensive outsourcing. Value-driven companies are less concerned with the cost implications, and instead focus on value creation. Premium value propositions and a high degree of personalized service usually characterize value-driven business models

15 Cost Structure 1-29 Recap - Canvas Filling