Business Model Canvas Explained

What we are talking about
today…

What we are NOT talking
about today…

What else is important to
know?

Opinions not facts!

?
„Some other guys“

Environment / Market ?
?

Start-up ?

A business model describes
the rationale of how an
organization creates,
delivers, and captures value

Value Price
What the What the
customer gets customer pays*

*or someone else

Willingness to „buy“ Ability to „pay“

How does your business
make money?

Why you should personally
care!

Right idea, right hands, right time = Luck

F. O. C. U. S.
„If something is everything, it is nothing“

If you try to do everything, you will
probably end up achieving nothing

2 General Approaches

Design vs. Emerging

?
Université de
Strategy Lausanne,
Consultant Business Faculty

„Some other guys“

Alexander Prof. Yves Pigneur
Osterwalder

Co-created by a crowd
of 470 practitioners
from 45 countries
Source: www.businessmodelgeneration.com

It is a visual framework preformatted with 9 building blocks


Customer Segment (CS)
Defines the different groups of people or
organizations an enterprise aims to reach
and serve

Key Question: For whom are we creating value?


The cinema is little more than a
fad. It’s canned drama. What
audiences really want to see is
flesh and blood on the stage.”

– Charlie Chaplin

Value Propositions (VP)
Describes the bundle of products and
services that create value for a specific
Customer Segment

Key Question: What value do we deliver to the customer?


Channels (CH)
Describes how a company communicates
with and reaches its Customer Segments to
deliver a Value Proposition
Key Question: Through which Channels do our Customer
Segments want to be reached?


C.A.C. L.V.C.
1 : ~4-6

X : 1

Customer Relationships (CR)
Describes the types of relationships a
company establishes with specific
Customer Segments
Key Question: What type of relationship does each of our
Customer Segments expect us to establish & maintain with them?


Revenue Streams (RS)
Represents the cash a company generates
from each Customer Segment (revenues –
costs = earnings)
Key Question: For what value are our customers really willing to
pay?


Key Resources (KR)
Describes the most important assets
required to make a business model work

Key Question: What Key Resources do our Value Propositions
require?


Key Activities (KA)
Describes the most important things a
company must do to make its business
model work
Key Question: What Key Activities do our Value Propositions
require?


Key Partnerships (KP)
Describes the network of suppliers and
partners that make the business model
work
Key Question(s): Who are our Key Partners? Who are our key
suppliers?


Cost Structure(CS)
Describes all costs incurred to operate a
business model

Key Question: What are the most important costs inherent in our
business model?


It wanted to be the „next Facebook“, before Facebook even existed

“90% of the time consumer Internet companies fail for 1
reason: Inability to acquire and retain substantial number
of users. In isolation the founders can articulate a
reasonable value proposition, but in the real world cutting
through the clutter of the 3,000 advertisements per day that
the average American is bombarded by is extraordinarily
difficult. There are only 24 hours in a day and most are
already claimed by family obligations, work, sleep and
existing entertainment options; even if you get a user's
attention your new product needs to be so compelling that
he is willing to forego something else he is already invested
in.”

- Keith Rabois
(worked at PayPal, LinkedIn, Slideshare and others)

Generate cash flows a.s.a.p.

„Traction“ & Speed = key

Keep „burn rate“ low

(Pre-)Seed: bottom-up

Think but don‘t over-analyze

Find „wrong paths“ quickly

„Falor, ergo sum“

I err, therefore I am

- St. Augustine

Hopefully
you now
understahd
why I did
chose the
failure
approach

Hopefully There is a
you now 100% failure
understahd rate among
why I did those who
chose the never try
failure because they're
approach afraid to fail.

Maybe you
now also
understood
why the colour
theme is black
(death) and
white (life)

The single most important
trait of entrepreneurs?

The single most important
trait of entrepreneurs?

THEY TAKE ACTION!

Business Model Canvas Explained

Business Model Canvas Explained

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