An introduction to

Business Model Canvas

Sven Olsson 2015-03-18

©  LU  innovation  system  Sven  Olsson  2015  

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Business Model Canvas SVEN OLSSON, LU INNOVATION

Agenda »  Business Model Canvas

–  Introduction

–  Part 1 Value Side

–  Part 2 Efficiency Side

–  Part 3 The Business model Canvas

© LU Innovation 2015, SOL

Business Model Canvas

2015-03-13

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The Business Model Canvas (the BMC)

The Business Model Canvas (the BMC)

The Business Model Canvas (the BMC)

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The BMC

Business Model Generation: A handbook for Visionaries, Game Changers, and Challengers.

Alexander Osterwalder and Yves Pigneur,

John Wiley & Sons

Agenda »  Business Model Canvas

–  Introduction

–  Part 1 Value Side

–  Part 2 Efficiency Side

–  Part 3 The Business model Canvas

© LU Innovation 2015, SOL

Part 1 VALUE SIDE

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» For whom are we creating value?

» Who are our most important customer?

» Several segments?

Customer Segments

» What Customer Value do we deliver?

» Which Problems do we solve?

» Which Customer Needs do we satisfy?

» One Value Proposition for each Customer Segment

Value Proposition

» A seamless Music Experience

» A free city commuter Newspaper

» Ad space in high circulation free news paper

» An ergonomic, more efficient, plastic surgery needle-holder

» Video Traffic Surveillance and Traffic analysis

»  Ipod

» Metro

» Metro

» Techmentum

» Trafvid

Ex. Value Propositions

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» How can we reach our customer?

» Which Channels does the Customer prefer?

» What works best? Long term - short term

Channels

» Own Sales force

» Web sales

» Own Stores

» Partner stores

» Distributer

» Agents, Franchise

1.  Awareness

2.  Evaluation

3.  Purchase

4.  Delivery

5.  After Sales

Selecting a channel

» Type of relation?

» How to establish?

» How to maintain?

» Cost?

Customer Relation

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» Personal contact

– Visit, e-mail, telephone, call centers

» Self-service, automated services

» Communities

» Co-creation (e.g. youtube)

Ex. Relations

» What are customers willing to pay for? How much?

» How would they like to pay?

» License, Pay per usage, Subscription

» Renting, Lending, Leasing

» List price, discount, dynamic pricing

Revenue Streams

Left & Right side of the Canvas

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Agenda »  Business Model Canvas

–  Introduction

–  Part 1 Value Side

–  Part 2 Efficiency Side

–  Part 3 The Business model Canvas

© LU Innovation 2015, SOL

Part 2 THE EFFICIENCY SIDE

» What Key Resources are needed for our

»  Value Proposition?

»  Distribution Channel?

»  Customer Relationship?

»  Revenue Streams?

» Physical, Intellectual, Human, Financial

Key Resources

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» What Key Activities are needed for our

»  Value Proposition?

»  Distribution Channel?

»  Customer Relationship?

»  Revenue Streams?

» Production, Problem solving, Platform/network, Updating

Key Activities

» Who are our Key Partners?

» Who are our Key Suppliers?

» Which Key Resources are we acquiring from partners?

» Reasons for Partnership:

①  Scale Optimization

②  Reduction of Risk

③  Acquisition of resources and activities

Key Partnerships

»  What are the most important costs?

»  Most expensive

–  Key Resources?

–  Key Activities ?

»  Cost-driven vs. Value-driven

»  Fixed costs, Variable costs

»  Large scale Advantages

»  Synergies of Scope

Cost Structure

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Agenda »  Business Model Canvas

–  Introduction

–  Part 1 Value Side

–  Part 2 Efficiency Side

–  Part 3 The Business model Canvas

© LU Innovation 2015, SOL

Part 3 THE BUSINESS MODEL CANVAS

The Business Model Canvas

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The Business Model Canvas (the BMC)

That´s it!