BUSINESS MODEL GENERATION SUMMARY
"Are you an entrepreneurial spirit? Are you constantly thinking about how to create value and build new businesses, or how to improve or transform your organization? Are you trying to find innovative ways of doing business to replace old, outdated ones?"
Written by: Alexander Osterwalder & Yves Pigneur?|??Co-created by: An amazing crowd of 470 practitioners from 45 countries?|??Designed by: Alan Smith, The Movement
Canvas – The nine building blocks
?
1. Customer segments
For whom are we creating value? Who are our most important customers?
Mass market. Niche market. Segmented. Diversified. Multi-sided markets.
?2. Value propositions
Value can be quantitative or qualitative. Which one of our customers problems are we solving? Needs we satisfy? Bundles of products and services for each customer segment? What value do we deliver?
Newness. Performance. Customization.
Example Value propositions:
Getting the job done.?Design. Brand and status. Price. Cost reduction. Risk reduction. Accessibility. Convenience and usability.
?3. Channels
Through which channels do our customer segments want to be reached? How are our channels integrated? Which ones work best? Which ones are most cost efficient? How are we integrating them with customer routines?
We can distinguish between direct channels indirect channels as well as owned channels and partner channels.
Channels have five distinct phases.
?4. Customer relationships
What type of relationship does each customer segment expect us to establish and maintain? What have we established so far and not established? How costly are they? How are they integrated with the rest of the business model?
Personal assistance. Dedicated personal assistance. Self assistance. Automated services. Communities. Co-creation.
?
5. Revenue streams
The two basic revenue stream types or transaction revenues from a one-time payment and reoccurring revenues. Prices are either a fixed menu or dynamic based on market conditions.
What value are customers really willing to pay for? What are they paying now? How are they paying? What would they prefer to pay? How does each revenue stream contribute to the total company revenue?
Asset sale. Usage fee. Subscription fees. Renting or leasing. Licensing.?Brokerage fees. Advertising.
领英推荐
?
6. Key resources
What key resources do we need for our value propositions, distribution channels, customer relationships and revenue streams?
Physical. Intellectual. Human. Financial.?For further examples of key resources,?read this article.
?
7. Key activities
What key activities to our value propositions distribution channels customer relationships and revenue streams require?
Production. Problem-solving. Platform and network.?For further examples of key activities,?read this article.
?
8. Key partnerships
There are three motivations for creating partnerships:
?
9. Cost structure
Is your business cost driven or value driven? Cost structures can have the following characteristics:
Fixed cost. Variable cost. Economies of scale. Economies of scope.
Download an original high-res PDF of this image directly from the?Strategyzer?website.?OR you can download an easier to edit PowerPoint version of?Business Model Canvas here.
Patterns
?
Unbundling Business Models
This theory holds there are three fundamentally different types of businesses. Customer relationship businesses, product innovation businesses and infrastructure businesses. Ideally a company should focus on one of these and create partners to handle the other two to avoid conflicts and undesirable trade-offs.
?
The Long Tail
This is a shift from selling a small number of hit items in large volumes to selling a very large number of niche items each in small quantities.?The author feels eBay is an example of this. Each item may not sell a lot but the total net volume is enough to create large revenue.??
?The lower cost of producing professional level music in short films has allowed an army of creators to create niche content. For each creator it doesn’t need to be a worldwide best seller.?When YouTube hosts such a large range of indie creator work...