Module 2 - Business Model Canvas.vvgvvvppt
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The document outlines the Business Model Canvas, developed by Alexander Osterwalder, consisting of nine key building blocks that illustrate how businesses create value. It emphasizes the canvas's importance for high-level analysis, insights, and visual clarity, making it useful for initial pitches and brainstorming. Additionally, it describes each block's purpose, including customer segments, value propositions, and revenue streams, while identifying various types of business models.
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Module 2 - Business Model Canvas.vvgvvvppt
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- 3. Understanding and Developing Business model Canvas The business model canvas, invented by Alex Osterwalder of Strategyzer, is made up of nine building blocks showing the logic of how a company intends to deliver value and make money. The nine blocks cover the three main areas of a business: desirability, viability and feasibility. 3
- 4. Importance of business model canvas The importance of business model canvas is that it offers a high- level analysis, provides important insights, and a greater understanding of your venture, all while avoiding getting bogged down in the details. As a visual tool, the Business Model Canvas has some key advantages. It provides information at a glance and can be useful as part of an initial pitch. It also focuses on customer value and can be an excellent tool for brainstorming. 4
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- 7. 7 A business model, consists of four interlocking elements that, taken together, create and deliver value: 1. Customers’ value proposition 2. Profit formula 3. Key resources 4. Key processes Develop Befitting Business Model (Master Business Plan)
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- 15. 15 Business Model Canvas The Business Model Canvas Template is likely to be the most well-known and used business modeling system in the world. This tool was developed by Alexander Osterwalder, in his book entitled Business Model Generation. It is user-friendly and different from everything that had been previously proposed, because it dispenses pages and pages of explanations and, on the other hand, focuses the attention of interested parties on a single canvas. This canvas is divided graphically into nine building blocks, which must be filled in as follows: 1. Customer Segments: you should start filling out your Business Model Canvas here. That’s because it’s easier to design your business when you already know who you’re selling to. Try to answer as briefly as possible to the question: “Who is my primary customer?” or “What kind of customer can I generate value for”?
- 16. 16 2. Value Propositions: having defined who your audience is, in the first block, you must now think about what needs of those people your product can meet. Ask yourself “What value do I deliver to my consumer?” Basically, try to highlight what differentiates your product or service from the competition. 3. Channels: the question here is “What are the best ways for me to reach my customer?”. List, in this block, all the ways through which your business can deliver value to your customer, whether sales channels, distribution or even communication and marketing. 4. Customer Relationships: the purpose of this block is to bring together all the service, communication and after-sales strategies that your business will use to create a relationship with the customer, in order to guarantee the retention of your audience, preventing them from migrating to the competition. 5. Revenue Streams: “How and how much will my customer pay for the value proposition I will be delivering?” This block outlines how your business will make money. You can have more than one revenue stream also, and it is important that all of them are included here. For example, sales, subscription, licensing, etc.
- 17. 17 6. Key Resources: to fill this block, you first need to ask yourself “What resources are essential for my business to be able to deliver value to the customer?”. Then, you must also include the necessary resources to keep your channels and relationship strategies working. In short, they are all fundamental assets for the maintenance of the business, such as software, human resources, machines, among others. 7. Key Activities: the purpose of this building block is very similar to the previous one. Indicate here all the essential activities for your business to work out and deliver value to the customer. They can be development and maintenance of technologies, production line, logistics and distribution etc. 8. Key Partners: inform in this block who your business partners are, observing the motivation of each one, whether they are suppliers, service providers, outsourced companies, among others. 9. Cost Structure: it is interesting to let this as the last block of the Business Model Canvas to be completed. By doing so, you will have already defined what the main activities and resources are so that your business can deliver value to the customer. Therefore, you will be able to define the costs that these and the other blocks may involve and, thus, explain them finally.
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- 19. Types of business model by Osterwalder In their book Business Model Generation, authors Osterwalder and Pigneur discuss five different types of business models: 1) Unbundled, 2) Long tail, 3) Multi-sided platform, 4) Free, and 5) Open 19
- 20. Common types of business models And lots of businesses earn money from multiple revenue streams, meaning their business models include several of these types. ? Retailer model. ... ? Manufacturer model. ... ? Fee-for-service model. ... ? Subscription model. ... ? Bundling model. ... ? Product-as-a-service model. ... ? Leasing model. ... ? Franchise model. 20
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