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The Business Model Canvas

Value Propositions

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 and services are we offering to each Customer Segment?

- Which customer needs are we satisfying?

NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/Status

CHARACTERISTICS

PriceCost ReductionRisk ReductionAccessibilityConvenience/Usability

Customer Segments

Customer Segments

- For whom are we creating value?

- Who are our most important customers?

Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform

Channels

Channels

- Through which Channels do our Customer Segments want to be reached?

- 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?

1. Awareness2. Evaluation3. Purchase

CHANNEL PHASES:

4. Delivery5. After sales

Customer Relationships

Customer Relationships

- What type of relationship does each of our Customer

- Segments expect us to establish and maintain with them?

- Which ones have we established?

- How are they integrated with the rest of our business model?

- How costly are they?

Personal assistanceDedicated Personal AssistanceSelf-Service

Automated ServicesCommunitiesCo-creation

EXAMPLES

Key Activities

Key Activities

- What Key Activities do our Value Propositions require?

- Our Distribution Channels?

- Customer Relationships?

- Revenue streams?

CATEGORIESProductionProblem SolvingPlatform/Network

Key Partners

Key Partners

- Who are our Key Partners?

- Who are our key suppliers?

- Which Key Resources are we acquiring from partners?

- Which Key Activities do partners perform?

MOTIVATIONS FOR PARTNERSHIPS:Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities

Key Resources

Key Resources

- What Key Resources do our Value Propositions require?

- Our Distribution Channels? Customer Relationships?

- Revenue Streams?

TYPES OF RESOURCESPhysicalIntellectual (brand patents, copyrights, data)HumanFinancial

Cost Structure

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

- Which Key Resources are most expensive?

- Which Key Activities are most expensive?

IS YOUR BUSINESS MORE:Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven ( focused on value creation, premium value proposition)

SAMPLE CHARACTERISTICS:Fixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope

Revenue Streams

Revenue Streams- 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?

TYPES:Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising

FIXED PRICINGList PriceProduct feature dependentCustomer segment dependentVolume dependent

DYNAMIC PRICINGNegotiation( bargaining)Yield ManagementReal-time-Market

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