The document describes the business model canvas tool, which provides a common language to describe, evaluate, and change business models through 9 building blocks that address key aspects of a business such as customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The business model canvas is a visual chart that presents the nine elements and their interactions in a simple format to help communicate how a company operates. It allows businesses to better understand their models and identify opportunities for improvement or innovation.

1. Business Modeling
Introduction

2. ?
What is a
Business
Model

3. “ Describes how
your business
makes money
”

4. How does this
help me?

5. How do we describe a
business model?

6. ... no common language

7. How do we communicate
a business model?

8. 1% 18%
Strategy
300%
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Development plan
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... in improper ways

9. How do we measure the
success of a business model?

10. ...well, we don’t

11. How do we change an existing
business model and innovate?

12. ... (re)inventing the wheel

13. the right
equipment!
...obviously a
tool is needed...

14. Business Model Canvas
A common “language”, tool to
describe, evaluate and change
business models

15. The business model describes:
how the how the
business business
creates delivers
value value
how the business
realizes value

16. BUSINESS MODEL "
CANVAS:"
9 Building
blocks

17. CUSTOMER SEGMENTS"
Different groups of people or
organizations which we want to
reach and serve"
www.businessmodelgeneration.com

18. Customer Segment"
If they require different:
"
• Value proposition"
• Aspects of the offer"
• Channels"
• Relationships"
• Profitability"
…they may represent a separate segment"

19. VALUE PROPOSITION"
the unique bundle of products and
services which has value for the
target customer"
www.businessmodelgeneration.com

20. Attributes of the value
proposition "
"
• Novelty"
• Performance (tech specs)"
• Customization"
• “Getting the job done”"
• Design"
• Brand/Status"
• Price"
• Cost reduction"
• Risk reduction"
• Accessibility"
• Convenience/usability"

21. CHANNELS"
how do we communicate with and
reach the target customer"
www.businessmodelgeneration.com

22. Channels are for…"
"
• Raising awareness"
• Helping customers evaluate your “gift”"
• Allowing customers to purchase your “gift”"
• Delivering the “gift”"
• Providing post-purchase customer support"
Could be:"
• owned Channels"
• partner Channels"

23. CUSTOMER RELATIONSHIPS"
type of relationships we have to
establish with the target customer"
www.businessmodelgeneration.com

24. Types of relationships"
"
• Transactional, one-time "
• Long-term, repetitive"
• Individual approach"
• Preferential individual approach"
• Self-service"
• Automated service"
• Building a community"
• Co-creation "
• Switching costs"

25. REVENUE STREAMS"
feasible revenue streams, through
which the business will make money"
www.businessmodelgeneration.com

26. Types of revenue streams?"
"
• Sale of assets"
• “Pay per view”"
• Subscription "
• Rent/Lease"
• Licensing"
• Commission"

27. KEY RESOURCES"
The key «assets» the company needs for
the business model to work"
www.businessmodelgeneration.com

28. Types of resources?"
"
• Physical"
• Intellectual property"
• Financial "
• Human resources"

29. KEY ACTIVITIES"
the key activities the company must
perform well for the business model to
work"
www.businessmodelgeneration.com

30. Types of activities"
"
• Production"
• Problem solving"
• Platform/network "

31. KEY PARTNERS"
network of suppliers and partners, without
which the business model wonʼt work"
www.businessmodelgeneration.com

32. Why should we create
partnerships?"
"
• Optimization and savings in scope/range"
• Reduction of the risk"
• Access and acquisition of resources"

33. COST STRUCTURE"
the essential costs without which the
business model wonʼt work"
www.businessmodelgeneration.com

34. Cost: types, cost structures,
attributes"
"
• Cost-driven (structure)"
• Value-driven (structure)"
• Fixed vs. operational cost (type)"
• Economy of scale (attribute)"
• Economy of scope(attribute)"

35. Key Value Customer"
Activities" Proposition" Relationships"
Key Target
Partners" Customers"
Cost Revenue
Structure" Key Channels" Streams"
Resources"
www.businessmodelgeneration.com

36. www.businessmodelgeneration.com

37. THE CANVAS"
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMERS
PROPOSITION RELATIONSHIPS SEGMENTS
KEY RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAM
www.businessmodelgeneration.com

38. Examples

39. КЛЮЧОВИ Co mpliance
КЛЮЧОВИ Simple,
ПРЕДЛОЖЕНИЕ ВЗАИМО- ТАРГЕТ КЛИЕНТ
practical ting
Co m munica rt
ПАРТНЬОРИ ДЕЙНОСТИ d ОТНОШЕНИЯ
Storage an
Разработване design at a
sma
log istics i deas an d
Автоматизира- ple
на софтуер reasonable
Приблизително но lution s for Yo ung peo
so масово
pr гласова къстъмизиране Глобално rage
Максимално Няма поддръж-същатаice
S uppliers Suppliers the ho me w ith ave
аутсорсване ка relationships услуга
на мрежа inco me
покритие без
ограничения-
Easy self-
КЛЮЧОВИ КАНАЛИ
IKEA
The Bran d
РЕСУРСИ та на мрежа
hen Онлайн,ing
Advertis евтино
chise ser vice w
IKEA The fran
Няма инфра- cho osing, Catalog
разпростране-
IKEA
структура buying an d ние на софтуер
Store assembling
manageme
nt Stores
РАЗХОДНА СТРУКТУРА ИЗТОЧНИЦИ НА ПРИХОДИ
system
Разходна структура на 90% ползват безплатно
Go o ds an d
софтуерна rketing
Ma компания 10% плащат за услугите
deliver y ds an d
Selling go o ome Restaurant
he h et
o nn e l Store an d i deas for t Super mark
Pers ure
infrastruct

40. КЛЮЧОВИ КЛЮЧОВИ ПРЕДЛОЖЕНИЕ ВЗАИМО- ТАРГЕТ КЛИЕНТ
ПАРТНЬОРИ ДЕЙНОСТИ ОТНОШЕНИЯ
Software Ind ividual
Log is tis development profiles and
tions
and support reco m menda Global
Affiliate d Online retail consumers
websites s tore market
КЛЮЧОВИ КАНАЛИ
РЕСУРСИ
Amazon.co m
Software affiliate d
Supply websites
re
inf ras tructu
РАЗХОДНА СТРУКТУРА ИЗТОЧНИЦИ НА ПРИХОДИ
Marketing
Techno logy Sale d isco un
ts
Content
Deliver y

41. Software ork
t The netw
developme
nt ! The larges (viral) eff
ect!
Paypal! nance ! tform
! and mainte social pla n: Internet !
ur Co-creatio
“share yo users all
!
Zynga! d ed
Network stories an Personaliz lobe!
FarmVille
!
ith ! over the g
developme
nt ! content w profiles!
s”!
the other
IT infra! ’ !
3rd parties
Brand! Targeted ! apps! Advertiser
s !
games and
ed users for !
Key talent adds, game
s
atform!
engineers the FB pl app!
and apps! Game and
!
and developers
Huge DB om!
e ! facebook.c
users bas
! aring !
Personnel nue! R evenue sh
Adds reve and game
with app !
IT infrastructure! developers

42. Software ork
t The netw
developme
nt ! The larges (viral) eff
ect!
Paypal! nance ! tform
! and mainte social pla n: Internet !
ur Co-creatio
“share yo users all
!
Zynga! d ed
Network stories an Personaliz lobe!
FarmVille
!
ith ! over the g
developme
nt ! content w profiles!
s”!
the other
IT infra! ’ !
3rd parties
Brand! Targeted ! apps! Advertiser
s !
games and
ed users for !
Key talent adds, game
s
atform!
engineers the FB pl app!
and apps! Game and
!
and developers
Huge DB om!
e ! facebook.c
users bas
! aring !
Personnel nue! R evenue sh
Adds reve and game
with app !
IT infrastructure! developers

43. One more example:
in Bulgaria

44. Business Students
(wanna-preneurs)"
model S Start-upers"
(segment S)
• Using services as individuals– price sensitive
• Attracting sponsors-clients to make the price
acceptable for them
• The individuals are attracted of a particular value
• Sponsors-clients are attracted to a different
value

45. “Green path” (without sponsors)
KEY KEY ACTIVITIES VALUE CUSTOMERS CUSTOMER
PARTNERS PROPOSITION RELATIONSHIPS SEGMENT
Cisco Systems Workshops Email and
Start-UP Online and offline Practical and telephone
Foundation events relevant Social media
AISEC workshops for Students and
Career centers entrepreneurs, Start-ups
Local centers of the networking
KEY RESOURCES CHANNELS
Cisco Entrepreneur
Institute Social media
Programs and
Successful Direct mailing
content
entrepreneurs Presentations and
Methodology and
seminars
know-how
COST STRUCTURE REVENUE STREAM
Payment (facilitators) Participants fees
Commissions
Franchise fees
Business model based completely on
revenue from individuals

46. “Green path” (with sponsors)
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
PROPOSITION RELATIONSHIPS SEGMENT
Cisco Systems Workshops Email and
Start-UP Online and offline Practical and telephone
Foundation events relevant Social media
Active workshops for Personal
AISEC Students and
selling entrepreneurs, relationships
Career centers Start-ups
Local centers of the networking
KEY RESOURCES CHANNELS
Cisco Entrepreneur Media Medium and
coverage Social media large
Institute Direct mailing
Sales partners Programs and CSR companies
Successful content Presentations and
mainly from
entrepreneurs recruitment
the corporate Methodology and
Networking seminars
Sales contacts
sector know-how
Creating and meeting
relationships
COST STRUCTURE REVENUE STREAM
Payment (facilitators) Participants fees
Commissions
Franchise fees Sales fees Income from sponsorship
packages
Business model sponsored by companies
and directed completely to individuals

47. Exercise

48. Imagine that you become a proud
owner of a soccer team…

49. ... describe the business
model of your team

50. What value proposition will you offer
and to which customer segment?
describing how a wealth management bank acquires its clients

51. How do you reach your customers?

52. How do you build relationships?

53. How do you make money with this
business model?

54. Business model of your team (example)
KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
PROPOSITION RELATIONSHIPS SEGMENT
Play attractively and Website
Food and drinks
win Playing Blog (RSS)
Tickets distribution
Brand management spectacular VIP events with the
TV channel
Video production soccer in team Fans
Mobile operators Personal
offence
relationships
Advertising KEY RESOURCS CHANNELS
agencies/ media Advertising
shop space and good Stadium and tickets- Advertisers
Trainers and visibility offices
players TV channels and
Stadium and cell phones
infrastructure Sales people
COST STRUCTURE REVENUE STREAM
Team and trainrs Tickets sale
Infrastructure and support
Marketing TV channels and mobile Advertising
Video operators

55. Contacts:
Svetlan Stanoev
sstanoev@thebusinessinstitute.eu
Tzvetelina Teneva
tzteneva@thebusinessinstitute.eu