Presented in Lean circle - Bangalore meetup http://bangalore.leanstartupcircle.com/events/84149722/ by Rammohan and Pallav Barah. There are 5-6 examples of Indian companies and their plausible Business Model canvas

1. Rammohan
Pallav
Barah

2. Burn your Business Plan
No Business Plan
Survives First Contact
With A Customer

3. Business Model
Describes the rational of
how an organization
creates, delivers and
captures value

4. Value Proposition
What Are You Building and For Who?

5. Value Proposition
 It’s about solving a need or a problem
 Distinct mix of elements catering to the segments need
 Type of Value Prop (non-exhaustive list)
 Newness – Cell phones
 Performance – Mostly Technology
 “Getting the job done” – Airlines pays Rolls-Royce fee for
every hour engine runs
 Design – Mostly Fashion & consumer electronics
 Brand – Rolex watch
 Price – Southwest , Deccan, Nano
 Cost reduction – SalesForce – CRM app
 Risk reduction – Used cars buyers receives 1-year
guarantee
 Accessibility – Mutual funds , NetJets(rental private jets,
fractional ownership)
 Convenience/Usability – iPod, iTunes

6. Customer Segments
Who Are They?
Why Would They Buy?

7. Customer Segments
 Who are they
 Demography
 Age etc.,
 Types of Segment
 Mass Market – Consumer electronics
 Niche market – Supplier/Buyer relationship
 Segmented – Retail Arm of Credit Suisse for
assets <100k USD, and >500K USD
 Diversified – Amazon retail diversification
w/cloud
 Multi-Sided – Media companies, Credit Card
companies

8. Channels
How does your deliver your product to your
Customers?

9. Channels
 Web
 Mobile
 Physical

10. Customer Relationships
How do you Get, Keep and Grow Customers?

11. Customer Relationships

12. Customer relationship
 Personal assistance - POS, call center
 Dedicated – Relationship manager
 Self-Service – ATM
 Automated Services – Online profile
 Communities – Sears social
 Co-creation – Amazon encourages
reviews

13. Revenue Streams
How do you Make Money?

14. Revenue Streams
 How do you make money from each
customer segment
 Some Revenue Streams (non-
exhaustive)
 Subscription fee – World of Warcraft
 Leasing / renting – Zipcar (rent cars by hour)
 Licensing – Netflix
 Brokerage fee – Credit card providers
 Usage fee – Telecom operators
 Fixed Menu Pricing vs Dynamic
Pricing

15. Key Resources
What are your most important Assets required to
make the business model work?

16. Key Resources
 Physical
 Intellectual
 Human
 Financial

17. Key Partners
Who are your Partners and Suppliers?

18. Key Partners
 What key resources are we acquiring
from partners
 What key activities do they perform
 Strategic alliance

19. Key Activities
What’s Most Important for the Business?

20. Key Activities
 Production
 Problem solving
 Platform/Networks

21. Cost Structure
What are the Costs and Expenses

22. Costs
 Fixed costs
 Variable costs
 What are the most important costs

23. Example BMCs
Disclaimer : We had no inside
information in creation of these BMCs.
The BMCs have been created with
publicly available information available
on websites, reports, personal
experience etc.,

24. Competitive BMCs - FlipKart
Vision : Online Value-Shopping
KEY KEY VALUE CUSTOMER CUSTOMER
ACTIVITIES SEGMENTS
PARTNERS • Supply chain PROPOSITION RELATIONSHIPS
Through email,
Publishers optimisation online chat and • Urban Indian
• Delivery optimisation database marketing
• Convenience book lovers
• SEO
• Wide selection
• Auto recommendations
• Cheaper • Internet-
• Trust (CoD) connected
KEY
CHANNELS people with
no credit
RESOURCES
• Delivery staff Web cards
• Technology
capability • First-time
online
shoppers
COST STRUCTURE REVENUE STREAMS
Book sales
Technology, warehouses, deep
discounts

25. Competitive BMCs -
Crossword
Vision : Leisure book browsing
KEY KEY VALUE CUSTOMER CUSTOMER
ACTIVITIES SEGMENTS
PARTNERS • Sourcing PROPOSITION In RELATIONSHIPS
store, Crossword
• Publishers • Visual merchandising club
• Franchisees • Urban Indian
• Book reading sessions
• Shopper’s • Crossword Literary • Browsing book lovers
Stop (parent Award experience
co) • Instant • Companies
KEY gratification
CHANNELS • Stationery
buyers
RESOURCES
• Real estate • Store
• Phone • Casual mall
• Web visitors
• Institutional
COST STRUCTURE REVENUE STREAMS
• Book sales • Coffee
Real estate, cost of inventory
• Advertising • Trinkets

26. Multi Sided BMCs – “Mid-
Day”
Vision : Evening Gossip
KEY KEY VALUE CUSTOMER CUSTOMER
ACTIVITIES SEGMENTS
PARTNERS • Brand building PROPOSITION
• Distribution • RELATIONSHIPS
Transactional • Mumbai
• PTI, AP etc. • Deep multi-year
• Newsgathering English-
• Improving ABC • Light high-touch speaking
numbers in key entertainment relationships mass market
demographics after/during a • Office-goers
KEY busy day • Commuters
• “2nd newspaper” CHANNELS
RESOURCES • Corporates
• Journalists • Mumbai-wide • Railway platforms for advertising
reach of readers • Kirana shops
• Salespeople with in a relaxed Advertisers +
media-planning context in a • Direct Agencies:
knowhow unique time • Mass market
window • Mumbai
COST STRUCTURE REVENUE STREAMS • Classified
• Discount
• Retail offtake (5%)
Newsroom, newsprint
• Advertising (95%)
2 or more distinct but interdependent customers –
usually subsidized on one end to attract “other”
side

27. Evolving BMC – Makemytrip in
2000
Vision : Online travel for NRI
KEY KEY VALUE CUSTOMER CUSTOMER
ACTIVITIES SEGMENTS
PARTNERS • Brand building PROPOSITION • RELATIONSHIPS
Online chat
• OTA/Airline Partnership • NRIs
• Email marketing
• OTA • Indian community
• International advertising Cheap tickets to Advertisers +
Airlines • Travel content India online Agencies:
• Travel editors • Mass market
KEY • Mumbai
CHANNELS • Classified
RESOURCES • Discount
• Technology • Online
• People
COST STRUCTURE REVENUE STREAMS
• Technology • Travel Ad network
• Deep Discounts/Offers • Customer Retention rate 30%
3 months into Oct 2000 (launch of MMT)
realized there is no market for online-travel, so

28. Evolving BMC – Makemytrip in
2005
Vision : “One”-stop travel stop
KEY KEY VALUE CUSTOMER CUSTOMER
ACTIVITIES SEGMENTS
PARTNERS • Supplier relations • PROPOSITION
Instant booking • RELATIONSHIPS
Call center
• LCC • Develop domain- • Indian
with real-time • Retail shops business
• Hotels specific skills to offer purchase • 24*7 support
• Travel agents best product travelers
• Search provided • Indian tirth
and tour • Advertising - Media Lowest Price
operators yatra
• Customized travelers
KEY products for
CHANNELS • Indian
social/religious holidayers
RESOURCES trips, weekend
• Proprietary Tech to • Online
package Advertisers +
link all supplier sites
• One-stop for Agencies:
to check inventory
air/rail/bus/hotel • Mass market
• Domain-experts
• Money-back • Mumbai
guarantee • Classified
COST STRUCTURE REVENUE STREAMS • Discount
• MMT developed product in travel+hotel (no Ads)
• Technology
• Marketing done for airlines
• Ticket and hotel consolidators
• Hotels finders fee
India Market ready (external factors – IRTC online so Indians
get comfortable with online CC, Deccan needed to sell tickets
online

29. Google Business Model

30. Other types of Business Models
?
 (Un)bundled business – Bharti Airtel,
 Long Tail – Lego Custom Factory, Lulu
 Freemium – Flickr, RedHat (supports
every release for 7 years over open
source using subscription), Skype
 Bait & Hook – Cell phones for free in
US

31. What after BMC ?
 Create MVP
 Validate BMC with MVP (customer
dev)

32. Reference