Lecture for StartUP Academy Sofia on Business Model Generation - Business Model Canvas building blocks

1. BUSINESS MODEL
BUSINESS MODEL CANVAS
Bm
Business model
2
Bc
Business model
canvas
2

2. BUSINESS MODEL
LEARN THE CHEMISTRY OF SUCCESS

3. BUSINESS MODEL
Based on
Business Model
Generation
by
Alexander
Osterwalder

4. BUSINESS MODEL
The Bright Future
It starts with great founder(s)
★ good education
★ excellent credentials
★ killer idea

5. BUSINESS MODEL
The Bright Future
Based on the credentials,
research, and plan, they have
secured...
VC funding

6. BUSINESS MODEL
How Likely Is To Succeed?
Despite the experience,
research and plan...

7. BUSINESS MODEL
5 Things Start-ups Should Consider

8. BUSINESS MODEL
Business Plans
“No business plan survives
the first customer contact.”
1
Steve Blank

9. BUSINESS MODEL
Business Plans Suck
Plans are for the known
future, do not work in the
start-up context

10. BUSINESS MODEL
Business Model
It’s the Business Model that
really matters
2

11. BUSINESS MODEL
Explain Your Business Model
Explain your business
(model) to your seat
neighbor!
5 min

12. BUSINESS MODEL
Explain Your Business Model
How did it go?

13. BUSINESS MODEL
Do You Have A Business Model?
“A business model describes
the rationale of how an
organization creates, delivers,
and captures value”

14. BUSINESS MODEL
The Business Model Canvas

15. BUSINESS MODEL
9 Building Blocks Of A Business Model

16. BUSINESS MODEL
Customer Segments
the different groups of people or
organizations an enterprise aims
to reach and serve
For whom are we creating value?
Who are our most important
customers?

17. BUSINESS MODEL
Customer Segment Types
Mass market
Niche market
Segmented market
Diversified market
Multi-sided platforms

18. BUSINESS MODEL
Value Proposition

19. BUSINESS MODEL
Value Proposition
The bundle of products and
services that create value for
a specific Customer Segment

20. BUSINESS MODEL
Value Proposition
What value do we deliver to the
customer?
Which one of our customer’s
problems are we helping to solve?
What bundles of products and
services are we offering to each
Customer Segment?

21. BUSINESS MODEL
Elements Of Value Proposition
Newness
Performance
Customization
Getting the job done
Design
Brand/status

22. BUSINESS MODEL
Elements Of Value Proposition
Price
Cost reduction
Risk reduction
Accessibility
Convenience/usability

23. BUSINESS MODEL
Channels

24. BUSINESS MODEL
Channels
How a company
communicates with and
reaches its Customer
Segments to deliver a
Value Proposition

25. BUSINESS MODEL
Channels
Through which Channels do our
CS want to be reached?
Which channels work best?
Which ones are most cost-
efficient?
How are we integrating them with
customer routines?

26. BUSINESS MODEL
Channels Types
Sales force
Web sales
Own stores
Partner stores
Wholesaler

27. BUSINESS MODEL
Customer Relations

28. BUSINESS MODEL
Customer Relations
Describes the types of
relationships a company
establishes with specific
Customer Segments

29. BUSINESS MODEL
Customer Relations
What type of relationship do
we establish and maintain
with CS?
How costly are they?
How are they integrated with
the rest of our business
model?

30. BUSINESS MODEL
Customer Relations Types
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation

31. BUSINESS MODEL
Revenue Streams

32. BUSINESS MODEL
Revenue Streams
The cash a company
generates from each
Customer Segment (costs
must be subtracted from
revenues to create earnings)

33. BUSINESS MODEL
Revenue Streams
For what value are our
customers really willing to pay?
For what do they currently
pay?
How are they currently paying?
How much does each RS
contribute to overall revenues?

34. BUSINESS MODEL
Revenue Streams Types
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising

35. BUSINESS MODEL
Key Resources

36. BUSINESS MODEL
Key Resources
The most important assets
required to make a business
model work

37. BUSINESS MODEL
Key Resources
What Key Resources do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?

38. BUSINESS MODEL
Key Resources Types
Physical
Intellectual
Human
Financial

39. BUSINESS MODEL
Key Activities

40. BUSINESS MODEL
Key Activities
The most important things a
company must do to make its
business model work

41. BUSINESS MODEL
Key Activities
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?

42. BUSINESS MODEL
Key Activities Types
Production
Problem solving
Platform/network

43. BUSINESS MODEL
Key Partnerships

44. BUSINESS MODEL
Key Partnerships
The network of suppliers and
partners that make the
business model work

45. BUSINESS MODEL
Key Partnerships
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we
acquiring from partners?
Which Key Activities do
partners perform?

46. BUSINESS MODEL
Partnership Types
Strategic alliances between
non-competitors
Coopetition: strategic
partnerships between
competitors
Joint ventures to develop new
businesses
Buyer-supplier relationships to
assure reliable supplies

47. BUSINESS MODEL
Motivations For Creating Partnerships
Optimization and economy
of scale
Reduction of risk and
uncertainty
Acquisition of particular
resources and activities

48. BUSINESS MODEL
Cost Structure

49. BUSINESS MODEL
Cost Structure
All costs incurred to operate a
business model

50. BUSINESS MODEL
Cost Structure
What are the most important
costs inherent in our business
model?
Which Key Resources are
most expensive?
Which Key Activities are most
expensive?

51. BUSINESS MODEL
Cost Structure Types
Cost-driven
Value-driven
Fixed costs
Variable costs
Economies of scale
Economies of scope

52. BUSINESS MODEL
Business Model Building Blocks

53. BUSINESS MODEL
Business Model Building Blocks

54. BUSINESS MODEL
Business Model Building Blocks

55. BUSINESS MODEL
Business Model Building Blocks
HOW WHAT WHO
HOW MUCH

56. BUSINESS MODEL
Business Model Canvas

57. BUSINESS MODEL
Business Model Canvas

58. BUSINESS MODEL
Possible Alternatives
Take time to think through
alternative possibilities.
3

59. BUSINESS MODEL
The Art Of Pivoting
The same technology,
product, or service can have
numerous business models

60. BUSINESS MODEL
The Art Of Pivoting

61. BUSINESS MODEL
Hypotheses
Your business model idea is
just a set of hypotheses
4

62. BUSINESS MODEL
Test Your Hypotheses
You need to adapt the
business model until you can
prove it works

63. BUSINESS MODEL
Hypotheses
Don’t build your company, until
you’ve verified your Business Model
5

64. BUSINESS MODEL
Test Your Hypotheses
Build when you’ve found your
model, otherwise you’re
burning cash really fast

65. BUSINESS MODEL
Let’s put our hands on
the Business Model Canvas NOW

66. PRODUCTIVITY