This document discusses business model innovation and the business model canvas. It provides various resources for learning about business models, including books, online courses, videos, and templates. It then explains the nine building blocks of the business model canvas - key partnerships, key activities, key resources, value propositions, customer relationships, channels, customer segments, revenue streams, and cost structure. Each block is defined and an example of filling out a business model canvas for a farm business is provided. The document encourages the reader to draw their own business model canvas and fill it out with ideas and hypotheses.

1. Business Model Innovation

2. 2
Format Title/Author
Books Business Model Generation (Ostewalder & Pigneur)
Value Proposition Design (Ostewalder & Pigneur)
MOOCs/
Videos/
Podcasts
How to Build a Startup – Lean LaunchPad on Udacity
Hundreds of Videos on BMC on Google Search
Goto www.strategyser.com
E-Books/
PDFs
Business Model Generation (Ostewalder & Pigneur): First 50
pages may be downloaded on PDF for FREE

3. @FergalBrophy

4. A business model
describes how an
organisation
creates, delivers
and captures value

6. @FergalBrophy

7. BMC 9 Building Blocks
Key
Partnerships
Revenue
Streams
Value
Proposition
Cost
Structures
Customer
Segments
Key
Resources
Customer
Relationships
Key Activities Channels

8. GAME TIME
1. Place 9 post-its or 2*2 inch square
pieces of paper in front of you
2. Write a different building block on
each of the 9 notes
3. Think about each of the building
blocks and play around with them until
you find a single layout for the 9 notes
that makes sense to you

9. LET’S TALK ABOUT…
YOUR LAYOUT

10. BUSINESS
MODEL
CANVAS

14. INNOVATE
with one or more
building blocks

15. DISRUPT

16. VIDEO
ALEXANDER OSTEWALDER
Business Model Canvas
(https://www.youtube.com/watch?v=2FumwkBMhLo)

17. YOUR
business model canvas
gives you a
helicopter view
of your venture

18. BMC is a set of
HUNCHES
helps organise our
THOUGHTS

21. @FergalBrophy

24. @FergalBrophy

25. Business Model Canvas

26. VIDEO
Dunkin Donuts
Business Model Canvas
(https://www.youtube.com/watch?v=NIRmmigG3pY)

27. Customer Segments
Describe the main
segments in your space.
Choose which segment(s)
to serve; the target market
Bases for segmentation
include jobs-to-be-done,
behaviour, demographics
and/or psychographics

28. the narrower the focus the greater the opportunity
David Walshe, Founder & CEO, Netwatch

29. House Proud
(25%)
Trendsetters
(10%)
Entertainers
(10%)
Cooks
(10%)
Zappits
(25%)
Just Feed Me
(20%)
Introducing the Foodies

30. True Blue
Believers
(20%)
Hearth &
Homemakers
(20%)
Fiscal
Conservatives
(15%)
Woeful
Worriers
(5%)
Intense
Individualists
(15%)
Liberal
Loners
(10%)
In-Charge
Intellectuals
(8%)
Active
Achievers
(7%)
Welcome to the Seniors

31. • Dislike the routine of regular grocery shopping
Shopping avoiders
• Limited in their ability to go shopping
Necessity users
• Younger customers who are eager to embrace and feel comfortable with new
technologies
New technologists
• Do not worry much about the price and are willing to pay extra to save time
Time-starved
• Have a lot of free time and enjoy shopping
Responsibles
• Older people who avoid new technologies and enjoy shopping in high-street
shops
Traditional customers
Online Shoppers

32. Use Personas
to better
understand the
segments

33. Paul-RegularExerciser
• 20 – 45
• Aim to maintain and
track active lifestyle
• Looking for
inspiration on diet &
exercise regimes
• Gets a buzz from
exercising
Sheetal-SpiritualHealth
•
• 30 – 55
• Already follows a
healthy lifestyle
• Interested in
alternative
medicines/
treatments
• Believes eating well
is as important as
exercise
Barbara-On-OffDieter
•
• 30 +
• Yo-yo dieter, has
tried many of the fad
diets but never stuck
to one
• Needs tips and
motivation to keep
up a healthy lifestyle
• Irregular or
infrequent exerciser
Wellness is a Big Thing

34. Can you identify and describe
the key customer segments
for your venture?
34

35. What is the problem to
be solved or aspiration?
Describe the benefits for
your customers?
Describe ‘gain creators’, how does your
product create customer gains
Describe ‘pain relievers’, how does your
product alleviate customer pains
Value Proposition

36. Can you describe your
VALUE PROPOSITION for your
customer segment?

37. Jobs-to-be-Done
Understand what
customers are you
trying to get done and
how do you currently
do this?

38. When we buy a
product, we essentially
‘hire’ something to get
a job done

39. And we ‘fire’ the
existing product that
is helping use get the
job done

40. What could be better
about how they
currently solve the Job-
to-be-Done?
The Pains & Gains

41. Case-Study
Milkshake
Marketing
Clayton Christensen HBS

42. Outcome-Driven Innovation (ODI)
Achieve these jobs they have certain
measurable outcomes that they are
attempting to achieve. It links a
company's value creation activities
to customer-defined metrics
Anthony Ulrick

43. Value Proposition Canvas

44. VIDEO
Value Proposition Canvas
Explained
(http://youtu.be/aN36EcTE54Q)
44

45. VIDEO
Amazon’s Value Proposition
Never Run Out Of Toilet Paper!
(http://youtu.be/aN36EcTE54Q)

46. Complete the
Value Proposition Canvas
for your new venture

47. Channels
How can you create awareness?
Where and how can customers purchase
your product? Direct v Indirect Channels?
Potential Channel Conflict?
How can you help end users evaluate your
product versus competitive offerings?
How do you deliver? After sales follow-up?
Cross-selling opportunities?

48. Can you identify your
CHANNELS (route-to-market).
Are you planning on going
direct or indirect or both?
48

49. How to get, keep and grow customers?
Types of relationship
- Personal assistance
- Dedicated personal service
- Self-service and automated services
- Communities and Co-creation
Customer Relationships

50. How are you going to
‘GET AND KEEP’
your customers?

51. What are customers willing to pay for your
product? What are they currently paying?
Asset Sale, Usage Fee, Subscription, Renting,
Licensing, Broker Fee, Advertising
How much does each revenue stream
contribute to overall revenues?
Can you charge for consumables?
Can you think of new revenue streams?
Revenue Streams

52. How many potential
REVENUE MODELS
can you identify for your
venture?

53. Key Activities
Production | Problem-solving|Platform/Network

54. What are the KEY ACTIVITIES
involved in running your
venture?
54

55. Key Resources
Physical | Human |Financial | Intellectual

56. What are the KEY RESOURCES
required for your venture?

57. Four types of Partnerships
- Strategic alliances
- Coopetition
- JVs
- Buyer-supplier
Key Partnerships
Motivations for
partnerships include
1. Optimisation and
Economies of
Scale
2. Reduction of Risk
and Uncertainty
3. Acquisition of
particular
Resources and
Activities

58. Can you identify KEY PARTNERS
that will help you launch and
grow your venture?
58

59. Two types of Cost Structures
- Cost-driven
- Value-driven
Cost Structure
Think about
1. Fixed costs
2. Variable costs
3. Economies of
scale
4. Economies of
scope

60. What are the MAIN COSTS
that you will incur pre and
post-launch of your venture?

61. Business Model Canvas

62. Think about External Environment

65. CASE-STUDY

67. Beef and
sheep
production
Meat
processors
Marts,
buyers
Customer
dictates
price
Market
price
Feed, energy, labour,
health bills
Production
Farm land,
stock,
machinery
Feed companies,
vets,
Their Traditional Farm

69. @FergalBrophy

70. Foodies
Premium
food
consumers
ABC 1
Young
dynamic
shoppers
Chefs
owners
Farm shop
Van distribution
Markets
Shops
Community
development
Social media
Cookery demos
Special offers
Retail price
Added value
Feed, energy, labour, health
bills, labour, rent, rates,
utilities, distribution,
production
Production
Sales and
marketing
Processing
Feed companies,
vets,
Distributors
CEB
Bord Bia
Land, machinery
Labour, retail until,
processing equip
A trusted and
traceable
source of high
quality food:
- Dry aged angus
beef
- Free range
pork
- Lamb
- Free range
bronze
turkeys
- Meat Pies
Castlemine Farm

71. Your Turn!
1. Draw out the BMC on a blank flip-chart or
use a poster.
2. Use blu-tac or tape and place it on a wall.
3. Think about each of the 9 building blocks for
your idea.
4. Write one idea per post-it and place the
post-its on the appropriate building block.
Try have several post-its per building block.
5. Saturate the canvas with your hunches.

72. Remember
Your BMC
is just a set of
HUNCHES

74. Business Model Innovation