Alex Osterwalder has given the world the most innovative yet simple model to Design a Business Model. This presentation is based on his classic book Business Model Generation.
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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
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