1.ProblemSolutionValue PropositionUnique AdvantageCustomer SegmentsThe Business Model Canvas The Un-Business Plan Key MetricsChannelsPresented By Art Helmstetter Cost StructureRevenue StreamsDeveloped by Steve Blank

2. Business Model Canvas ProblemSolutionValue PropositionUnique AdvantageCustomer SegmentsHow is a business model different than a business plan?1. It is an empirically based system that 2. Forms a hypothesis around a market/business Key Metrics Channels 3. Tests the hypothesis on real customers 4. Revises the concept and tests it again if needed 5. Simplifies the key business concept 6. Speeds market entry and response changes rapidly 7. Can test numerous hypotheses at once Revenue Streams Cost Structure 3. Build The Model Piece By Piece ProblemSolutionKey MetricsCost StructureValue PropositionUnique AdvantageCustomer SegmentsChannelsRevenue Streams 4. Define The Problem Solved Problem The SPECIFIC customer problem(S) that you solve A financial need A need to live or exist A required function more efficiently An emotional desire Need to simplify or speed somethingBe as specific and detailed as you can to pinpoint the problem or need met 5. Define Customer Segment(s) Customer SegmentsSpecific and common characteristics of the customer Business (B2B) or Consumer (B2C) Geographic location For business Size of segment ? Lifetime Sales Value? Size of company, industry, culture etc. Buying behavior quality/price For Consumer Age, gender, cultural or family orientation Size and number of purchases Preferences for service, quality, price, etc.An any others which define the customer 6. Unique Value Proposition Value PropositionSpecific and detailed explanation of how your offer provides unique value to customers Statement of the offering, Its benefits, Differentiation, and Value provided to customers (net of benefits value minus cost) Examples: Newness, Performance, Customization Getting the Job Done Design, Brand/Status Price, Cost Reduction Risk Reduction Accessibility Convenience/Usability 7. State Solutions Provided Solution ProvidedSpecific and detailed explanation of how you solve the problem or meet a need Provide a financial benefit Fill a need to exist or live Perform a required function Fill an emotional desire Simplify or do something faster Improve quality 8. Competitive Advantage Competitive AdvantageDetailed explanation of the uniqueness of your offer, market position, or relationships The KEY element that competitors cannot match. Core function that provides differentiation from competitors. Assets, intellectual property, employee skills or relationships, proprietary systems Control of commodities or raw materials via ownership, licenses or contracts Unique customer relationship or interaction 9. Channels to Customers Channels How can you reach and serve your customers most efficiently?Channel phases: 1. Awareness - How do we raise awareness about our companys products and services? 2. Evaluation - How do we help customers evaluate our organizations Value Proposition? 3. Purchase - How do we allow customers to purchase specific products and services? 4. Delivery - How do we deliver a Value Proposition to customers? 5. After sales - How do we provide post-purchase customer support 10. Key Metrics Key Metrics How do we measure the effectiveness or productivity of our key activities and resources?Key Activities Sales & Marketing Production Problem Solving Platform/Network Key Resources Physical Intellectual (patents, copyrights, data) Human Financial 11. Cost Structure Cost Structure What are the most important costs of key resources and key activities?Is your business more: Cost Driven (leanest cost structure, low price value proposition Value Driven ( focused on value creation, premium value proposition) Can you control key costs through : Economies of scale Economies of scope 12. Revenue Streams Revenues For what value are customers really willing to pay? For what do they currently pay?Revenue Sources: Asset sale Usage fee Subscription Fees Lending/Renting/Licensing Brokerage fees Advertising/exposureRevenue Costs = Profitability 13. ProblemSolutionProblemUnique Value PropositionUnfair AdvantageSolution Unique Value CustomerKey Metrics SegmentChannelsUnfair Advantage Cost Structure Revenue Streams Cost StructureRevenue StreamsCustomer Segments (SPECIFIC) 14. ProblemSolutionKey MetricsCost StructureValue PropositionUnique AdvantageCustomer SegmentsChannelsRevenue Streams 15. Thank you for your timeContact Us Now To Find Out More About The Business Model Process Or call 937-985-0481