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Business Model Canvas
         How to innovate a new business model
Based on Business Model Generation by Alex Osterwalder




                           अिभजीत मजुमदार
Business Reality
• Today countless
  innovative business
  models are emerging.
  Entirely new industries
  are forming as old ones
  crumble.
• Upstarts are challenging
  the old guard, some of
  whom are struggling
  feverishly to reinvent
  themselves.
A business model describes
    the rationale of how an
         organisation
creates, delivers, and captures
             VALUE.
Business Model Canvas

• The Business Model Canvas concept allows
  you to describe and think through the
  business model of any organisation

• This concept has been applied and tested
  around the world and is already used in
  organisations like IBM, Ericsson, Delloite and
  many others
Business Model Canvas
The 9 Building Blocks
•    Customer Segments

•    Value Propositions

•    Channels

•    Customer Relationships

•    Revenue Streams

•    Key Resources

•    Key Activities

•    Key Partnerships

•    Cost Structure
The 9 Building Blocks
                 Key                       Customer
               Activities                 Relationships

  Key                          Value                      Customer
Partners                    Proposition                   Segments

                 Key
                                           Channels
              Resources




              Cost                             Revenue
           Structures                          Streams
The 9 Building Blocks
                 Key                       Customer
               Activities                 Relationships

  Key                          Value                      Customer
Partners                    Proposition                   Segments

                 Key
                                           Channels
              Resources




              Cost                             Revenue
           Structures                          Streams
Customer Segments
• The different groups of people or organizations an enterprise aims to
  reach or serve

       • For whom are we creating
         value?

       • Who are our most important
         customers?

       • There are different types of
         Customer Segments like Mass
         market, Niche Market,
         Segmented, Diversified, Multi-
         Sided platforms

       • Business models must be
         designed around a strong
         understanding of specific
         customer needs
Value Propositions
  The bundle of products and services that
create value for a specific Customer Segment

• What value do we deliver to
  the customer?

• Which one of our customer
  problems are we helping to
  solve?

• Which customer needs are
  we satisfying?

• What bundle of products and
  services are we offering to
  each Customer Segment?
Channels
How a company communicates with and reaches its
 Customer Segments to deliver a Value Proposition
 • 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 the best?

 • Which ones are the most cost
   efficient?

 • How are we integrating them with
   customer routines?
Customer Relationships
The types of relationships a company establishes with specific
                      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 costly are they?

  • How are they integrated with
    the rest of our business model?
Revenue Streams
  The cash the company generates 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?
Key Resources
The most important assets required to make a
           business model work


• What Key Resources do our
  Value Proposition require?

• Our Distribution Channels?

• Customer Relationships?

• Revenue Streams?
Key Activities
The most important things a company must do to make its
                 business model work


    • What Key Activities do our
      Value Propositions require?

    • Our Distribution Channels?

    • Customer Relationships?

    • Revenue Streams?
Key Partnerships
The network of suppliers and partners that make the
               business model work

  • Who are our Key Partners?

  • Who are our Key Suppliers?

  • Which Key Resources are we
    acquiring from partners?

  • Which Key activities do
    partners perform?
Cost Structure
All Costs incurred to operate a business model


 • What are the most costs
   inherent in our business
   model?

 • Which Key Resources are
   the most expensive?

 • Which Key Activities are
   most expensive?
The Business Model Canvas

                 Key                       Customer
               Activities                 Relationships

  Key                          Value                      Customer
Partners                    Proposition                   Segments

                 Key
                                            Channels
              Resources




              Cost                            Revenue
           Structures                         Streams
What Should Be My Business Model?

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Designing a Business Model

  • 1. Business Model Canvas How to innovate a new business model Based on Business Model Generation by Alex Osterwalder अिभजीत मजुमदार
  • 2. Business Reality • Today countless innovative business models are emerging. Entirely new industries are forming as old ones crumble. • Upstarts are challenging the old guard, some of whom are struggling feverishly to reinvent themselves.
  • 3. A business model describes the rationale of how an organisation creates, delivers, and captures VALUE.
  • 4. Business Model Canvas • The Business Model Canvas concept allows you to describe and think through the business model of any organisation • This concept has been applied and tested around the world and is already used in organisations like IBM, Ericsson, Delloite and many others
  • 6. The 9 Building Blocks • Customer Segments • Value Propositions • Channels • Customer Relationships • Revenue Streams • Key Resources • Key Activities • Key Partnerships • Cost Structure
  • 7. The 9 Building Blocks Key Customer Activities Relationships Key Value Customer Partners Proposition Segments Key Channels Resources Cost Revenue Structures Streams
  • 8. The 9 Building Blocks Key Customer Activities Relationships Key Value Customer Partners Proposition Segments Key Channels Resources Cost Revenue Structures Streams
  • 9. Customer Segments • The different groups of people or organizations an enterprise aims to reach or serve • For whom are we creating value? • Who are our most important customers? • There are different types of Customer Segments like Mass market, Niche Market, Segmented, Diversified, Multi- Sided platforms • Business models must be designed around a strong understanding of specific customer needs
  • 10. Value Propositions The bundle of products and services that create value for a specific Customer Segment • What value do we deliver to the customer? • Which one of our customer problems are we helping to solve? • Which customer needs are we satisfying? • What bundle of products and services are we offering to each Customer Segment?
  • 11. Channels How a company communicates with and reaches its Customer Segments to deliver a Value Proposition • 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 the best? • Which ones are the most cost efficient? • How are we integrating them with customer routines?
  • 12. Customer Relationships The types of relationships a company establishes with specific 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 costly are they? • How are they integrated with the rest of our business model?
  • 13. Revenue Streams The cash the company generates 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?
  • 14. Key Resources The most important assets required to make a business model work • What Key Resources do our Value Proposition require? • Our Distribution Channels? • Customer Relationships? • Revenue Streams?
  • 15. Key Activities The most important things a company must do to make its business model work • What Key Activities do our Value Propositions require? • Our Distribution Channels? • Customer Relationships? • Revenue Streams?
  • 16. Key Partnerships The network of suppliers and partners that make the business model work • Who are our Key Partners? • Who are our Key Suppliers? • Which Key Resources are we acquiring from partners? • Which Key activities do partners perform?
  • 17. Cost Structure All Costs incurred to operate a business model • What are the most costs inherent in our business model? • Which Key Resources are the most expensive? • Which Key Activities are most expensive?
  • 18. The Business Model Canvas Key Customer Activities Relationships Key Value Customer Partners Proposition Segments Key Channels Resources Cost Revenue Structures Streams
  • 19. What Should Be My Business Model?