Understanding and Designing Business Models

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    Understanding and Designing Business M

    Nishant Bhaskar6th March 2016

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     A business model describes the rationale of how an organizadelivers, and captures value.

    - Osterwalde

    What is a Business Model?

    Osterwalder, A., Pigneur, Y

    A handbook for visionari

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    Business Model Canvas

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    Video: Business Model CanvasExplained

    www.youtube.com/watch?v=QoAOzMTLP5s

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    Value Proposition

    NewnessPerformance

    Customization

    “Getting the Job Done”

    Design

    Cost Reduction

    Risk Reduction

     Accessibility

    Convenience/Usability

    What value do we deliver to the customer?Which one of our customer’s problems are we h

    What bundles of products and services are we of

    Customer Segment?

    Which customer needs are we satisfying?

    Examples

    Key Questions

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    Customer Segments

     Mass MarketNiche Market

    Segmented

    Diversified

     Multi-sided Platform

    For whom are we creating value?Who are our most important customers/users?

    What are the key dimensions (geography, offer, so

    to segment your customers?

    Examples

    Key Questions

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    Channel

    Retail chainsBrand stores

    Online

    Direct Sale

    Local Distributors

    Through which Channels do our Customer Segmreached? How are we reaching them now?

    How are our Channels integrated? Which ones w

    Which ones are most cost-efficient?

    How are we integrating them with customer rout

    Examples

    Key Questions

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    Customer Relationship

    Personal AssistanceSelf-Service

     Automated Services

    Communities

    Co-creation

    Switching Cost

    Lock-in

    What type of relationship does each of our CustoSegments expect us to establish and maintain wit

    Which ones have we established?

    How are they integrated with the rest of our bus

    How costly are they?

    Examples

    Key Questions

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    Key Activities

    ProductionProblem Solving

    Platform/Network

    R&D

    Litigation

    What Key Activities do our Value Propositions re

    Our Distribution Channels? Customer Relationsh

    Revenue streams?

    Examples

    Key Questions

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    Key Resources

    PhysicalIntellectual (brand patents, copyrights, data)

    Human

    Financial 

    What Key Resources do our Value Propositions r

    Our Distribution Channels? Customer Relationsh

    Revenue Streams?

    Examples

    Key Questions

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    Key Partners

    Technical supportSuppliers

    Distributers

    Governments

    Who are our Key Partners?

    Who are our key suppliers?

    Which Key Resources are we acquiring from part

    Which Key Activities do partners perform?

    Examples

    Key Questions

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    Cost Structure

    Fixed Costs (salaries, rents, utilities)Variable costs

    Economies of scale

    Economies of scope

    Royalties

    Promotional Activities

    What are the most important costs inherent in o

    model?

    Which Key Resources are most expensive? Whic

    are most expensive?

    Is your business more: Cost Driven? Value Driven

    Examples

    Key Questions

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    Revenue Streams

     Asset saleUsage fee

    Subscription Fees

    Lending/Renting/

    Leasing

    Licensing

    Brokerage fees

     Advertising

    For what value are our customers really willing to

    For what do they currently pay?

    How are they currently paying?

    How would they prefer to pay?

    How much does each Revenue Stream contribute

    revenues?

    Examples

    Key Questions

    Fixed Pricing:List Price

    Product feature dependent

    Customer segment dependent

    Volume dependent

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    Revenue Streams

     Asset saleUsage fee

    Subscription Fees

    Lending/Renting/

    Leasing

    Licensing

    Brokerage fees

     Advertising

    For what value are our customers really willing to

    For what do they currently pay?

    How are they currently paying?

    How would they prefer to pay?

    How much does each Revenue Stream contribute

    revenues?

    Examples

    Key Questions

    Fixed Pricing:List Price

    Product feature dependent

    Customer segment dependent

    Volume dependent

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    Lean Canvas

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    Value Web

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    Value Web Components

    Supplier    Non-profit   My Organization   Consumer Company     Gove

    Money    Product Service

    Right Data   ReputationVirtual CreditsExposure

    ExperienceLess Money 

    Ten Items of Transfer

    Six Stakeholders

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    product

    service

    experience

    exposure

    reputation

    money 

    less money 

    data

    right

    credits

    Google Adwords,

    Carbon credits, U

    association or IP

    Patientslikeme, Fa

    Giffgaff, Airline Mi

    Points, Zynga

    Tripadvisor, Airbn

    Normal buying and selling

    Commission (Flipkart, Airbnb),

    Kiva, Kickstarter

    Cars, Cell phones, Food

    Dropbox, Olacabs, Banking

    Starbucks, Nespresso, Harley-

    Davidson, Couchsurfing

    Examples: Items of Transfer

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    DNA Newspaper

    DNA

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    Uber

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    @nbhaskar888

    [email protected]

    nbhaskar888.wordpress.com