1. Business Model generation

2. Business Model is how to create economical value out of your idea 3. Are you creating value Design a process to oversee the valueSelected featuresConfirm the revenue streamsIdentify the market segment What is the benefit 4. The business model canvas 5. Customer Segment Mass market Niche market Segmented Diversified Multi-Sided platform 6. Value proposition Newness Performance Customization Getting the job done Design Price Cost reduction Risk reduction Accessibility Usability 7. Channels Direct Vs. Indirect channels Channel phase Awareness Evaluation Purchase Delivery After sale 8. Customer relationships Personal assistance Dedicated personal assistance Self-service Automated service Communities Co-creation 9. Revenue streams Assets sale Usage fees Subscription fees Lending/Renting/Leasing Licensing Brokerage fees Advertising 10. Pricing mechanisms Fixed menu pricing List price Product features dependent Customer segment Value dependent Dynamic pricing Negotiation Yield management Real-time market Auctions 11. Key Resources Physical Intellectual Human Financial 12. Key activities Production Problem solving Platform/network 13. Key partnerships Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources 14. Cost structure Cost-driven Value-driven Fixed costs Variable costs 15. Innovation in Business Model 16. HardwareSoftware1990FinanceServicesHardwareSoftwareFinanceServicesGeneral Motors Business Model 2004 17. Importation questions for the Business Model 1. How are we solving the problem or meeting the need? 2. What are the customers willing to pay to solve this problem 3. How large is my market 4. Do we have a competitive offering? 5. What is the status of the market/technology 6. How should I presented the product and its image 7. How much it will cost me to get my solution ready for the market