Business Model Canvas

Expectations?

What actually is a

business model?

Tell me...

“A business model describes the rationale of how an organization creates, delivers, and captures value”

Customer Segments

People or organizations an enterprise aims to reach.

Customer Segments

For  whom  are  we  crea+ng  value?  Who  are  our  most  important  customers?  

Customer Segments

They represent separate segments if:

¤ Their needs require and justify a distinct offer; ¤ They are reached through different distribution channels; ¤ They require different types of relationship; ¤ They have substantially different profit abilities; ¤ They are willing to pay for different aspects of the offer.

Customer Segments

They represent separate segments if:

¤ Their needs require and justify a distinct offer; ¤ They are reached through different distribution channels; ¤ They require different types of relationship; ¤ They have substantially different profit abilities; ¤ They are willing to pay for different aspects of the offer.

Who are Facebook’s customers? To who is Facebook selling its products?

Value Proposition

Bundle of products and services that create value for a specific Customer Segment.

Value Proposition

What  value  do  we  deliver  to  the  customers?  Which  problem  are  we  helping  to  solve?  Which  customer  needs  are  we  sa+sfying?    

Value Proposition

Customer value creation:

¤ “Getting the job done”; ¤ Performance; ¤ Customization; ¤ Design; ¤ Brand; ¤ Price

Value Proposition

Customer value creation:

¤ “Getting the job done”; ¤ Performance; ¤ Customization; ¤ Design; ¤ Brand; ¤ Price

Facebook?

Channels

The way a company communicates with and reach its customers segments to deliver a value proposition.

Channels

Through which channels do our Customer Segments want to be reached?

How are we reaching them now? How are we integrating them with customer routines?

Channels

¤ Raising awareness among customers about company’s

products and services;

¤ Delivering a Value proposition to customers

¤ Providing post-purchase customer support

Channels

¤ Raising awareness among customers about company’s

products and services;

¤ Delivering a Value proposition to customers

¤ Providing post-purchase customer support

Facebook?

Customer Relationships

Describes the types of relationships a company establishes with a specific Customer Segment.

Customer Relationships

What type of relationship does each of our costumer segments expect us to establish and maintain with them?

Customer Relationships

Drivers:

¤ Customer acquisition; ¤ Customer retention; ¤ Boosting sales (upselling).

Customer Relationships

Drivers:

¤ Customer acquisition; ¤ Customer retention; ¤ Boosting sales (upselling). Facebook?

Revenue Streams

The cash a company generates from each customer segment

Revenue Streams

For what value are our customers really willing to pay? How much does each Revenue Stream contribute to

overall revenues?

Revenue Streams

The different types of revenue streams:

¤ Transaction revenues resulting from one-time customer payment.

¤ Recurring revenues resulting from ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support.

Revenue Streams

The different types of revenue streams:

¤ Transaction revenues resulting from one-time customer payment.

¤ Recurring revenues resulting from ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support.

Facebook?

Key resources

The most important assets required to make a business model work.

Key resources

What Key Resources do our Value Proposition require? Our Distribution Channels? Customer Relationship?

Revenue Streams?

Key resources

¤ Physical;

¤  Intellectual;

¤ Human;

¤ Financial.

Key resources

¤ Physical;

¤  Intellectual;

¤ Human;

¤ Financial. Facebook?

Key activities

The most important things a company must do to make its business model work.

Key activities

What Key Activities do our Value Proposition require? Our Distribution Channels? Customer Relationship?

Revenue Streams?

Key activities

Some categories:

¤ Production;

¤ Marketing

¤ Problem solving;

¤ Network.

Key activities

Facebook?

Some categories:

¤ Production;

¤ Marketing

¤ Problem solving;

¤ Network.

Key partnerships

Describes the network of suppliers and partners that make the business model work.

Key partnerships

Who are our Key Partners/Suppliers? Which Key resources/activities are we acquiring from partners?

Key partnerships

Motivation for creating partnerships:

¤ Optimization and economy of scale;

¤ Reduction of risk and uncertainty;

¤ Acquisition of particular resources and activities.

Key partnerships

Motivation for creating partnerships:

¤ Optimization and economy of scale;

¤ Reduction of risk and uncertainty;

¤ Acquisition of particular resources and activities.

Facebook?

Cost structure

All costs incurred to operate a business model.

Cost structure

What  are  the  most  important  costs  inherent  in  our  business  model?  

Which  Key  Resources/Ac+vi+es  are  most  expensive?  

Cost structure

Facebook?

Loans that change lives

Business Model Prototyping

Napkin  Sketch   Canvas   Business  Case   Field  Test  

Business Model Prototyping

Napkin  Sketch   Canvas   Business  Case   Field  Test  

We look for the apropriate business model

Business Model Prototyping

Napkin  Sketch   Canvas   Business  Case   Field  Test  

We look for the apropriate business model

...so let’s generate option first!

Interested in knowing more? Contact me at rafael@startuppirates.org

Credits...

1.  http://www.businessmodelgeneration.com/ 2.  http://www.slideshare.net/Alex.Osterwalder/what-is-a-

business-model 3.  http://www.slideshare.net/Alex.Osterwalder/business-models-

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