| Business Model Canvas | Consist of 9 building blocks to represent the
business model
Customer Centric:
• Customer Segment
• Value Proposition
• Customer Relationship
• Channels
Organization Centric:
• Key Partners
• Key Activities
• Key Resources
• Revenue Stream
• Cost Structure |
| Customer Segment | • Definition: The segment(s) of clients that are addressed by the value proposition;
• Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients. e.g. Car
• Niche Market: Customer segmentation based on specialized needs
and characteristics of its clients. e.g. Rolex
• Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.
• Diversify: A business serves multiple customer segments with different
needs and characteristics.
• Multi-Sided Platform / Market: For a smooth day-to-day business
operation, some companies will serve mutually dependent customer
segment. A credit card company will provide services to credit card holders while simultaneously assisting merchants who accept those credit cards. |
| Value Proposition | •definition: The collection of products and services a business offers to
meet the needs of its customers. A company's value
proposition is what distinguishes itself from its competitors
•the value proposition provides value through various
elements such as newness, performance, customization,
"getting the job done", design, brand/status, price, cost
reduction, risk reduction, accessibility, and
convenience/usability.
The value propositions may be:
• Quantitative- price and efficiency
• Qualitative- overall customer experience and outcome |
| Customer Relationship | • To ensure the survival and success of any
businesses, companies must identify the type of
relationship they want to create with their customer
segments.
• 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?
• Personal Assistance : assist during, after or both sales
Dedicated Personal Assistance: eg. sales rep
Self Service: org prov tools needed for customer to serve themselves
Automated Services: A system similar to self-service
Communities: Creating a community allows for a direct interaction
Co-creation: A personal relationship is created through the customer’s direct input |
| Channels | definition: The methods of communication, distribution and
sales used by the organization to interface with its
customer segments.
• 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? |
| Key Partners | •Definition: The network of cooperative agreements with other people or
organizations (including governments) necessary to efficiently offer
and distribute the organization’s mission and programs.
• In order to optimize operations and reduce risks of a business
model, organization usually cultivate buyer-supplier relationships so
they can focus on their core activity.
• Complementary business alliances also can be considered through
joint ventures, strategic alliances between competitors or non-
competitors.
• Who are our Key Partners?
• Who are our key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform? |
| Key Activities | • Definition: The main actions which an organization needs to
perform to create its value proposition.
• The most important activities in executing a
company's value proposition. An example for “Bic”
would be creating an efficient supply chain to drive
down costs.
• What Key Activities do our:
• Value Propositions require?
• Distribution Channels require?
• Customer Relationships require?
• Revenue streams require? |
| Key Resources | • Definition: The physical, financial, intellectual or human assets required
to make the business model work.
• The resources that are necessary to create value for the
customer. They are considered an asset to a company, which
are needed in order to sustain and support the business.
• These resources could be human, financial, physical and
intellectual.
• What Key Resources do our:
• Value Propositions require?
• Distribution Channels require?
• Customer Relationships require?
• Revenue Streams require? |
| Revenue Streams | • Definition: The way a company makes income from
each customer segment.
• 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?
ways to generate a revenue steam : asset sales, usage fee, subscription fees, lending/leasing/renting, licensing, brokerage fees, advertising |
| Cost Structure | •Definition: This describes the most important monetary
consequences while operating under different
business models.
• What are the most important costs inherent in our
business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• Classes of Business Structures:
• Cost-Driven - This business model focuses on minimizing all costs and
having no frills
• Value-Driven -Less concerned with cost, this business model focuses on
creating value for their products and services
Characteristics of Cost Structures: Fixed costs, Variable Costs, Economies of Scale, Economies of Scope |
| Business Model Canvas | pic |
