Business Model Genera6on Crea%ng Your Canvas
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1 Business Model Genera6on Crea%ng Your Canvas Adapted from Business Model Genera/on by Alexander Osterwalder & Yves Pigneur, Copyright 2010 and The Startup Owner's Manual by Steve Blank and Bob Dorf
2 The Business Model Canvas
3 Understanding the Business Model Genera=on It describes how you create and deliver value; How you will solve a problem/make money It is an itera=ve process It can form the founda=on of a business plan It is dynamic and agile It is focused on the customer It has nine building blocks
4 The Nine Building Blocks LeP Side Key Resources Key Ac=vi=es Key Partnerships Cost Structure Right Side Value Proposi=on Customer Segment/s Channels Customer Rela=onships Revenue Streams
5 Value Proposi=on It s the reason why customers will come to you over a compe=tor This solves a problem or sa=sfies a need for the customer It s the bundle of benefits that you will offer to the customer Product or Service value can be created by newness, performance, customiza=on, gevng the job done, design, brand/status, price, cost reduc=on, risk reduc=on, accessibility, convenience/usability
6 Value Proposi=on The product or service being offered to customers The Startup Owner s Manual, p. 76 Things that should be included are below. Details about the product or service Its features and benefits watch this Your company s long-term product vision The ini=al minimum viable product The Startups Owner s Manual, p. 76
7 Customer Segment/s Who are you trying to reach and serve? How many are there? How big is your market Paint a detailed picture of your customer Types of segments (Mass, Niche, Segmented, Diversified, Mul=-sided) Absolutely essen=al to success key to remainder Steve Blank s Customer Discovery Integrates the canvas into his model IDs TAM, SAM, and Target Market Step prior to the actual canvas
8 Channels How are you going to reach the customer segment to deliver your value proposi=on how do they want reached? These are your touch points w/ your customers These rise awareness, helps w/ proposi=on evalua=on, allows purchase, the delivery, and ways of post-purchase support 5 phases of the channels: awareness, evalua=on, purchase, delivery, ager sales Channel types: Own (direct & indirect) and Partner (indirect)
9 Customer Rela=onships What type of rela=onship does each of our customer segments expect? Which ones have we established? How costly are they? How are they integrated with the rest of your business model? Categories of Rela=onships Personal assistance, dedicated personal assistance, self-service, automated services, communi=es, co-crea=on
10 Revenue Streams How will your business make money? For what value are your customers really willing to pay? For what do they currently pay? How much does each revenue stream contribute to overall revenue? Two types One =me customer payment On-going customer payment Mul=ple ways to generate revenue Different pricing mechanisms
11 Key Resources These will allow you create and offer your value proposi=on, reach your market, maintain the rela=onships and earn revenues What key resources does your value proposi=ons require? Distribu=on Channels? Customer Rela=onships, Revenue Streams Types of resources Physical, Financial, Intellectual, and Human
12 Key Ac=vi=es These are the most important ac=ons required to create and offer your value proposi=on, reach your customer segments, maintain your customer rela=onships, and earn revenue Key ac=vity categories Produc=on, Problem Solving, Plalorm/Network (website, sogware, brand, etc.)
13 Key Partnerships These are the network of suppliers and partners that makes it possible to create and offer your value proposi=on to your customer segment, maintain your rela=onships, and earn revenue. Who are your key partners, key suppliers? Which key resources are you acquiring from partners, which key ac=vi=es do partners perform? Why do you need a par=cular partnership?
14 Cost Structure This tells you all the costs incurred to operate your business model This is the cost of doing business What are the most important costs inherent to your business model? What key resources are the most expensive? Which key ac=vi=es are the most expensive? Two broad classes of cost structures: Cost-driven & Value- Driven Cost Structure Characteris=cs
15 Discussion Ques=ons Remember Itera=on # 1, 2, 3,.or 4 is not your final canvas Every =me you find a difference or make a change make the adjustment
16 Customer Discovery Steve Blank Searching for problem/solu=on fit: have we found a problem lots of people want us to solve (or a need they want us to fill) and does our solu=on (a product, a website, or an app) solve the problem in a compelling way? Your startup s value proposi=on matches the customer segment it plans to target. p. 57, The Startup Owner s Manual, Steve Blank and Bob Dorf Size of Market----Addi=onal Step
17 Business Model Genera=on Special ARribu6on Adapted from Business Model Genera/on by Alexander Osterwalder & Yves Pigneur, Copyright 2010 Steve Blank Serial Entrepreneur & Professor, Stanford U. The Startup Owner s Manual, Steve Blank & Bob Dorf 2012
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