1. Welcome to 41631
Business Model Canvas
Thomas J. Howard
thow@mek.dtu.dk
Unless otherwise stated, this material is under a Creative
Commons 3.0 Attribution–Share-Alike licence and can be
freely modified, used and redistributed but only under the
same licence and if including the following statement:
“Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product
Development Department of Mechanical Engineering, Technical University of Denmark”

2. Business Model Canvas
http://upload.wikimedia.org/wikipedia/commons/1/10/Business_Model_Canvas.png
Business Model Generation
By Alexander Osterwalder & Yves Pigneur
ISBN13: 978-2-8399-0580-0
2 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

3. 3 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

4. Customer Segments
• Mass market
• Niche market
• Segmented
• Diversified
• Multisided platforms
?
4 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

5. Value Propositions
• Newness
• Performance
• Customisation
• “Get the job done”
• Styling
• Brand/status
• Price
• Cost reduction
• Risk reduction
• Accessibility
• Convenience/usability ?
5 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

6. ?
Channel Types
• Sales force
• Web sales
• Own stores
Awareness stores
• Partner
• Wholesaler
Channel Phases
Awareness Evolution Purchase Delivery After sales
6 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

7. Customer Relationships
• Personal assistance
• Dedicated personal assistance
• Self-service
Awareness service
• Automated
• Communities
• Co-creation
?
7 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

8. Revenue Streams
• Asset sales
• Usage fee
• Subscription fee
?
• Lending/Renting/Leasing
• Licensing
Awareness • Brokerage fees
• Advertising
8 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

9. Key resources
• Physical/material
• Intellectual
• Human
• Financial
?
Awareness
9 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

10. Key activities
• Production
• Problem solving
• Platform/network
Awareness
?
10 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

11. Key partners
• Optimisation & economies of scale
• Reduction of risk and uncertainty
• Acquisition of particular resources
and activities
Awareness
?
11 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

12. Cost structure
• Cost driven
• Value driven
• Fixed costs
• Variable costs
Awareness
• Economies of scale
• Economies of scope
?
12 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

13. Exercise
In your teams, try to draw up the Spotify business model...
how does it differ from conventional retail?
13 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

14. Value Propositions
• Newness
• Performance
• Customisation
What is the
• “Get the job done”
• Styling
value
• Brand/status proposition
of your
• Price
• Cost reduction
• Risk reduction
• Accessibility technology?
• Convenience/usability
14 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

15. Figure out
what
parameters
your
technology
outperforms
other Then work out how this
may be of value to a user
Now lets try to identify
some customer
technology or customer... segments that will really
...Now the benefit from the
CBS students can be value proposition.
involved!
15 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark

16. ?
16 Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development 2013
Department of Mechanical Engineering, Technical University of Denmark