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BUSINESS MODEL CANVAS
What’s a CANVAS?
It’s a useful tool created to express a BUSINESS MODEL in an effective way…
First introduced by Alex Osterwalder
“Business model innovation is about new ways of creating, delivering and capturing value”
How is CANVAS?…just like a graphic scheme summarizing how a company should create, deliver and capture value
• EXHAUSTIVE: all features of the business are clearly expressed!
• SIMPLE: it’s easy to understand and communicate!
• SHORT: it avoids huge documentations!
How does a CANVAS appear?
The CANVAS structure:
1. Value Proposition
VALUE PROPOSITION
The Value PropositionHow could my company create value?
Performance (better; faster)?Customization?Design?Cost reduction?Risk reduction?Accessibility?Usability?
The CANVAS structure:
2. Customer Segments
CUSTOMER SEGMENT
The Customer SegmentWho’s the consumers subset for whom the created value is higher?
•Their needs are well defined and recognizable;
•They are reached through different distribution channels;
•They require different types of relationships;
•They have substantially different profit abilities;
•They are willing to pay for different aspects than the others;
Customer groups represent separate segments if:
The CANVAS structure:
3. Customer Channels
CUSTOMER CHANNELS
The Customer ChannelsWhich is the best way to deliver and communicate the created value?
It’s about evaluating issues concerning:
• Delivery (web, dealers, sales agents,…)• Awareness • Evaluation • After Sales
The CANVAS structure:
4. Customer Relationship
CUSTOMER RELATIONSHIP
The Customer RelationshipWhat could I do to keep my customer network?
It’s about choices concerning:
• Personal assistance• Automated assistance• Self service• Cooperation or Co-creation
The CANVAS structure:
5. Revenue Streams
REVENUE STREAMS
The Revenue StreamsHow could my company earn money?
It’s about choosing the proper way to make the customer pay:
• Asset sale• Pay per use• Fee• Leasing• Royalties
The CANVAS structure:
6. Key Activities
KEY ACTVITIES
C
The Key ActivitiesWhat must I do to put my business up?
The choice of the steps I should follow depends on the progress level of the startup:
• early idea MVP development andMarket assessment
• Product is ready!
Building up of sales channels
The CANVAS structure:
7. Key Resources
KEY RESOURCES
C
The Key ResourcesWhich resources should I use to make my business successful?
It’s about choosing and then planning the proper set of resources,which could be:• Physical (machineries, raw material) • Intellectual (patents, brand)• Human (developers, managers)• Financial
The CANVAS structure:
8. Key Partners
KEY PARTNERS
C
The Key PartnersWho could I cooperate to create value with?
We can distinguish between four different types of partnerships:• Strategic alliances• Coopetition • Joint Ventures• Buyer-Supplier relationships
The CANVAS structure:
9. Cost Structure
COST STRUCTURE
The Cost StructureWhich are the cost items I will incurr in my business?
They could be classified into:
• Industrial vs Overhead • Fixed vs variable• Accounts departments (production, logistics,
marketing, …)
Where can I find all information?
• Literature
• Personal know how
• Background
• Experts Opinion
• Buyers or other partners
• Customers
Let’s go on with an example…
Everybody knows
How was the business raised? • value proposition?• customer segments?• customer channels?• customer relationship?• revenue streams?• key activities?• key resources?• key partners?• cost structure?
Thanks for your attention and…
Let’s start up our Business Game