L 03 - Business Model.pdf

Business Model Generation Business Model “ A Business Model Describe the Rationale of How an Organization Create, Deliver and Capture Values”  09 Building Blocks of Alexander Osterwalder & Yves Pigneur Business Model Canvas...

Business Model Generation Business Model “ A Business Model Describe the Rationale of How an Organization Create, Deliver and Capture Values”  09 Building Blocks of Alexander Osterwalder & Yves Pigneur Business Model Canvas  SUPPLY DEMAND 09 Building Blocks of Alexander Osterwalder & Yves Pigneur Business Model Canvas  Customer Segments An organization serves one or more customer segments Business Model Canvases  Customer Segments An organization serves one or more customer segments For whom are we creating value? Who are our most important customers? Is our customer base a Mass Market, Niche Market, Segmented, Diversified, Multi-sided Platform Business Model Canvases  Value Customer Propositions Segments It seeks to solve An organization customer problems serves one and satisfy or more customer customer needs with segments value propositions Business Model Canvases  Value Customer Propositions Segments It seeks to solve An organization customer problems serves one and satisfy or more customer What value do customer we deliver needsto the customer? with segments value propositions Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each customer Segment? Which customer needs are we satisfying? CHARACTERISTICS Newness, Performance, Customization, “Getting the Job Done”, Design, Brand/Status, Price, Cost Reduction, Risk Reduction, Accessibility, Convenience/Usability Business Model Canvases  Value Customer Propositions Segments It seeks to solve An organization customer problems serves one and satisfy or more customer customer needs with segments value propositions Channels Value propositions are delivered to customers through distribution, and sales Channels Business Model Canvases  Value Customer Propositions Segments Through which ChannelsItdo our seeks to solve An organization customer problems serves one Customer Segments want to be and satisfy or more customer reached? customer needs with segments value propositions How are we reaching them now? Channels How are our Channels integrated? Value propositions Which ones work best? are delivered to customers Which ones are most cost-efficient? through distribution, and sales How are we integrating them with Channels customer routines? Business Model Canvases  Value Customer Customer Propositions Relationships Segments It seeks to solve Customer An organization customer problems relationships serves one and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer segment Channels Value propositions are delivered to customers through distribution, and sales Channels Business Model Canvases  Value Customer Customer Propositions Relationships Segments It seeks to solve Customer An organization customer problems relationships serves one and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer What type of relationship does each segment of our Customer Segments expect Channels us to establish and maintain with Value propositions are delivered to them? customers through distribution, Which ones have we established? and sales How are they integrated with the Channels rest of our business model? How costly are they? Business Model Canvases  Value Customer Customer Propositions Relationships Segments It seeks to solve Customer An organization customer problems relationships serves one and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer segment Channels Value propositions are delivered to customers through distribution, and sales Channels Revenue Streams Revenue streams result from value propositions successfully offered to customers Business Model Canvases  Value Customer Customer What For what value are ourPropositions Relationships Segments customers really willing to pay? It seeks to solve customer problems Customer relationships An organization serves one For what do they currently pay?and satisfy are established and or more customer customer needs with maintained with segments How are they currently paying? value propositions each customer segment How would they prefer to pay? Channels How much does each Revenue Value propositions Stream contribute to overall are delivered to customers revenues? through distribution, TYPES: Asset sale, Usage fee, and sales Subscription Fees, Channels Lending/Renting/Leasing, Revenue Streams Licensing, Brokerage fees, Revenue streams result from value propositions Advertising successfully offered to customers Business Model Canvases  Value Customer Customer Propositions Relationships Segments It seeks to solve Customer An organization customer problems relationships serves one and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer segment Key Resources Channels Key resources are the Value propositions assets required to are delivered to offer and deliver customers values propositions through distribution, and sales Channels Revenue Streams Revenue streams result from value propositions successfully offered to customers Business Model Canvases  Value Customer Customer Propositions What Key Resources Relationships Segmentsdo our It seeks to solve CustomerValue Propositions require? An organization customer problems relationships serves one and satisfy Our Distribution are established and or Channels? more customer customer needs with Customer maintained with Relationships segments ? value propositions Revenue Streams? each customer segment Key Resources Channels Key resources are the Value TYPES OF RESOURCES: propositions assets required to are delivered to offer and deliver Physical, Intellectual (brand customers values propositions patents, through copyrights, data), distribution, and sales Channels Human, Financial Revenue Streams Revenue streams result from value propositions successfully offered to customers Business Model Canvases Key Activities Value Customer Customer Key activities are the Propositions Relationships Segments activities required to It seeks to solve Customer An organization offer and deliver customer problems relationships serves one values propositions and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer segment Key Resources Channels Key resources are the Value propositions assets required to are delivered to offer and deliver customers values propositions through distribution, and sales Channels Revenue Streams Revenue streams result from value propositions successfully offered to customers Business Model Canvases Key Activities Value Customer Customer Key activities are the Propositions Relationships Segments activities required to It seeks to solve Customer An organization offer and deliver customer problems relationships serves one values propositions and satisfy are established and or more customer customer needs with maintained with segments value propositions each customer segment Key Resources What Key Activities do our Value Channels Key resources are the Propositions require? Value propositions assets required to are delivered to offer and deliver Our Distribution Channels? customers values propositions Customer Relationships? Revenue through distribution, and sales streams? Channels Revenue Streams CATEGORIES: Revenue streams result from value propositions Production, successfully offered Problem Solving, to customers Platform/Network Business Model Canvases Key Partners Key Activities Value Customer Customer Some activities are Key activities are the Propositions Relationships Segments outsourced and activities required to It seeks to solve Customer An organization some resources are offer and deliver customer problems relationships serves one acquired values propositions and satisfy are established and or more customer outside the customer needs with maintained with segments organization value propositions each customer segment Key Resources Channels Key resources are the Value propositions assets required to are delivered to offer and deliver customers values propositions through distribution, and sales Channels Revenue Streams Revenue streams result from value propositions successfully offered to customers Business Model Canvases Key Partners Key Activities Value Customer Customer Some activities are Key activities are the Propositions Relationships Segments outsourced and activities required to It seeks to solve Who are our Key Partners? Customer An organization some resources are offer and deliver customer problems relationships serves one acquired values propositions and satisfy Who are are ourand established key suppliers? or more customer outside the customer needs withWhich Keywith maintained Resources are we segments organization value propositions each customer acquiring from partners? segment Key Resources Which Key Activities do partners Channels Key resources are the assets required to perform? Value propositions are delivered to offer and deliver customers values propositions MOTIVATIONS through distribution, FOR and sales PARTNERSHIPS: Channels Optimization and economy Revenue Streams Reduction of risk and uncertainty Revenue streams result from value propositions Acquisition successfully offeredoftoparticular customers resources and activities Business Model Canvases Key Partners Key Activities Value Customer Customer Some activities are Key activities are the Propositions Relationships Segments outsourced and activities required to It seeks to solve Customer An organization some resources are offer and deliver customer problems relationships serves one acquired values propositions and satisfy are established and or more customer outside the customer needs with maintained with segments organization value propositions each customer segment Key Resources Channels Key resources are the Value propositions assets required to are delivered to offer and deliver customers values propositions through distribution, and sales Channels Cost Structure Revenue Streams The business model elements result in the cost structure Revenue streams result from value propositions successfully offered to customers Business Model Canvases Key Partners Key Activities Value Customer Customer Some activities are Key activities are Propositions theWhat Relationships are the most important Segments costs inherent in our outsourced and activities required to It seeks to solve Customer An organization some resources are offer and deliver customer problems business model? relationships serves one acquired values propositions andWhich Key Resources satisfy are mostandexpensive? are established or more customer outside the customer needs with maintained with segments organization Which value Key Activities propositions each are most expensive? customer segment Key Resources Channels MORE: IS YOUR BUSINESS Key resources are the Value propositions assets required to Cost Driven (leanest cost structure, are delivered to low price value offer and deliver proposition, maximum automation, extensive customers values propositions through distribution, outsourcing), and sales Value Driven (focusedChannelson value creation, premium value proposition). Cost Structure Revenue Streams The business model elements result in the cost structure Revenue streams result from value propositions SAMPLE CHARACTERISTICS: successfully offered to customers Fixed Costs (salaries, rents, utilities), Variable costs, Business Model Canvases Economies of scale Dr. Krishantha Wisenthige B.Sc., MBA (Pera), Ph.D (WHUT) Email - [email protected] Mobile - 0773 279826 FB / Linkedin - krishanthawisenthige