Business Model Canvas

The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. The presentation is a summary and explanation of key building blocks of the business model canvas.

1. Business Model Canvas

2. Alexander Osterwalder
Swiss business theorist, author and consultant
Proposed by

3. Li Wei
Technology Commercialization Manager
Exploit Technologies PteLtd (ETPL)
Agency for Science, Technology and Research (A*STAR, Singapore)
Presentation by
[REF•ER•ENCES]
Business Model Generation
By Alexander Osterwalder& Yves Pigneur, 2010

4. A shared language for describing, visualizing,
assessing, and changing business models
THE BUSINESS
MODEL CANVAS

5. 9 Building Blocks
1Customer Segment2Value Proposition3Channels 4Customer Relationships
5Revenue Streams6Key Resources7Key Activities8Key Partnerships9Cost Structure

6. Business model
The rationale of how an organization creates, delivers and captures value

7. 1Customer Segment
The different groups of people or organizations an
enterprise aims to reach and serve
Mass market
Niche market
Segmented
Diversified
Multi-sided markets
Different types of Customer Segments

8. Elements contributing
to customer value creation
2Value Proposition
The bundle of products and services that create
value for a specific Customer Segment
Newness
Performance
Customization
“Getting the job done”
Design
Brand/Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience/Usability

9. 3Channels
How a company communicates with the reaches its
customer segments to deliver a value proposition
Channel Types
Own Partner
Direct Indirect
Sales
force
Web
sales
Own
Stores
Partner
Stores
Whole
-saler
Channel Phases
1. Awareness
2. Evaluation
3. Purchase
4. Delivery
5. After sales
Channel types and
their five distinct phases

10. 4Customer Relationships
The types of relationships a company establishes
with specific Customer Segments
Personal assistance
Dedicated personal assistance
Self-service
Automated service
Communities
Co-creation
Categories of Customer Relationships
that may co-exist in a Customer Segment

11. 5Revenue Stream
The cash a company generates from each Customer
Segments
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
Ways to generate Revenue Streams

12. 5Revenue Stream
The cash a company generates from each Customer
Segments
Pricing Mechanisms
Fixed Menu PricingDynamicPricing
List Price Negotiation
Product feature
dependent
Yield
management
Customer segment
dependent
Real time
market
Volume dependentAuctions

13. 6Key Resources
The most important assets required to make a
business model work
Physical
Intellectual
Human
Financial
Categories of Key Resources

14. 7Key Activities
The most important things a company must do to
make its business model work
Production
Problem Solving
Platform/Network
Categories of Key Activities

15. 8Key Partnerships
The network of suppliers and partners that
make the business model work
Optimization and
economy of scales
Three motivations
for creating partnerships
Acquisition of particular
resources and activities
Reduction of risk
and uncertainty

16. 9Cost Structure
All costs incurred to operate a business model
Three motivations
for creating partnerships
Class of
Business model
Cost-drivenValue-driven
Characteristics
of Cost
Structures
Fixed costs
Variable costs
Economies of scale
Economies of scope

17. The nine business model Building Blocks form the basis for a
handy tool, which we call the Business Model Canvas

18. Plot it on a poster
and work with your team

19. LEFT BRAIN
logic
RIGHT BRAIN
emotion

20. LEFT CANVAS
efficiency
RIGHT CANVAS
value

21. www.innodiary.org