Updated Business Model Canvas 23 May 2016
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The document introduces the Business Model Canvas tool. It aims to define a business model, show a real-life example, and explore the 9 building blocks of the Business Model Canvas, which are: value proposition, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The Business Model Canvas is a strategic planning tool that allows businesses to describe, analyze, and design business models in a visual and dynamic way compared to traditional business plans.
Updated Business Model Canvas 23 May 2016
- 1. Welcome An Introduction to Business Model Canvas Catherine Duggan Monday 23 May 2016
- 2. About Me
- 3. Aim Aim: • To introduce the Business Model Canvas Tool Objectives: 1. Define a Business Model 2. Show a real life example 3. Explore the 9 Building Blocks of the Business Model Canvas
- 4. Business Model Definition A business model describes the thinking behind how an organisation: • Creates • Delivers • Captures value
- 5. Future based: • Predictions • Estimations • Timings Traditional Business Plan
- 6. Dynamic tool for: • Describing • Analyzing • Designing A Business Model Source: Business Model Generation created by Alexander Osterwalder http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf Video: Business Model Canvas in 5 minutes with example company Made online designer furniture company https://www.youtube.com/watch?v=_4MHqyf4Vw0 Business Model Canvas
- 7. Business Model Canvas Strategic business planning tool with 9 Building Blocks 1. Value Proposition 2. Customer Segments 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partnerships 9. Cost Structure
- 8. 1. Value Proposition Tries to solve customer problem & satisfy their needs with value propositions. • What value do we deliver to the customer? • Which one of our customer’s problems are we helping to solve? • What bundles of products & services are we offering to each Customer Segment? • Which customer needs are we satisfying?
- 10. 2. Customer Segments For whom are we creating value? Who are our most important customers? • Mass Market • Niche Market • Segmented
- 12. 3. Channels Value propositions are delivered to customers through communication, distribution, and sales channels. • How are we reaching them now? • How are our Channels integrated? • Which ones work best? • Which ones are most cost-efficient? • How are we integrating them with customer routines?
- 13. 3. Channels Phases Channel Phases 1. Awareness: How to raise awareness about our company’s products & services? 2. Evaluations: How to help customers evaluate our organisation's Value Proposition? 3. Purchase: How to allow customers to purchase specific products and services? 4. Delivery: How to deliver a Value Proposition to customers? 5. After sales: How to provide post-purchase customer support?
- 14. 4. Customer Relationships Customer relationships are established & maintained with each Customer Segment. • What type of relationship does each of our Customer Segments expect us to establish & maintain with them? • Which ones have we established? • How are they integrated with the rest of our business model? • How costly are they?
- 16. 5. Revenue Streams A result from value propositions successfully offered to customers. • For what value are our customers really willing to pay? • For what do they currently pay? • How are they currently paying? • How would they prefer to pay? • How much does each Revenue Stream contribute to overall revenues?
- 17. 5. Revenue Streams Types • Subscription Fees • Lending/Renting/Leasing • Licensing • Brokerage fees • Advertising
- 19. 6. Key Resources These are the assets required to provide • Distribution Channels • Customer Relationships Types Physical Intellectual (brand patents, copyrights, data) Human Financial
- 20. 6. Key Resources
- 21. 7. Key Activities What Key Activities do Value Propositions require? • Distribution Channels? • Customer Relationships? • Revenue Streams? Categories • Production • Problem Solving • Platform/Network
- 22. Some activities are outsourced & some resources are acquired outside • Who are our Key Partners? • Who are our Key Suppliers? • Which Key Resources are we acquiring from partners? • Which Key Activities do partners perform? Motivation Optimisation & economy Reduction of risk & uncertainty Acquisition of particular resources & activities 8. Key Partnerships
- 24. 9. Cost Structure The business model elements result in the cost structure • What are the most important costs? • Which Key Resources are most expensive? • Which Key Activities are most expensive? Is your business more? • Cost Driven (leanest cost structure) • Value Driven (focused on value creation) Sample characteristics • Fixed Costs (salaries, rents, utilities) • Variable costs
- 26. What next? • Test the guesses in the Building Model Canvas • Get out of the building and talk to customers • Only when potential customers validate the idea, then build the product or service • Saves time & money • Or Pivot
- 27. Summary Aim: • To introduce the Business Model Canvas Tool Objectives: 1. Define a Business Model 2. Show a real life example 3. Explore the 9 Building Blocks of the Business Model Canvas
- 28. Additional Information YouTube Business Model Canvas in 5 minutes https://www.youtube.com/watch?v=_4MHqyf4Vw0 Strategyzer.com Business Model Canvas Explained • https://www.youtube.com/watch?v=QoAOzMTLP5s Business Model Canvas Tutorial Episodes 1 - 6 • https://www.youtube.com/watch?v=wwShFsSFb-Y • https://www.youtube.com/watch?v=wlKP-BaC0jA • https://www.youtube.com/watch?v=iA5MVUNkSkM • https://www.youtube.com/watch?v=7O36YBn9x_4 • https://www.youtube.com/watch?v=-2gd_vhNYT4 • https://www.youtube.com/watch?v=SshglHDKQCc Catherine Duggan: gmail: duggancatherine56@gmail.com LinkedIn: ie.linkedin.com/pub/catherine-kearns/40/b4a/126/
- 29. Conclusion Thank you for your attention Questions & Answers