1. Business model canvas

2. A BUSINESS MODEL IS
HOW A COMPANY CREATES VALUE
FOR ITSELF
WHILE DELIVERING PRODUCTS OR
SERVICES FOR ITS CUSTOMERS.

3. Business model canvas
Value
proposition
Customer
relationships
Customer
segments
Channels
Revenue
streams
Costs
Key
partners
Key
activities
Key
Resources

5. Business model canvas
Value
proposition

6. Value proposition
NOT a list of features / technologies
How do you create joy or relieve pain?
What need are you addressing?
What problem are you solving?
Look for needs when possible!
=> 5 why’s

7. Business model canvas
Customer
segments

8. Customer segments
• Better multiple detailed than one generic
• Create persona(s) / archetypes per segment
• Learn to know your customer!
– How do they buy?
– How do they learn about new products?
– What is their role?
– What matters for them?

9. Customer segments
Look for the holy grail: product – market fit
• Map value proposition to customer segments
• Make sure these hypotheses are TESTED

10. Business model canvas
Channels

11. Channels
Virtual channel Physical channel
Virtual product • Facebook
• Twitter
• Apps
• Insurance
• Software
• Stocks
Physical product • Shoes
• Books
• Movies
• Consumer electronics
• Food
• Household goods
• Cars

12. Channels

13. Channels

14. Business model canvas
Customer
relationships

15. Customer relationships
• How do we GET customers?
• How do we KEEP them?
• How do we GROW?

16. Customer relationships

17. Customer relationships
Physical channel

18. Customer relationships
Web / mobile / cloud channel

19. Customer relationships
GET customers by PAID demand creation
• Public relations
• Advertising
• Trade shows
• Webinar
• Direct (e-)mail
• Search engine marketing

20. Customer relationships
GET customers by EARNED demand creation
• Publications in journals
• Speeches / conferences
• (Guest) blogging
• Social media

21. Customer relationships
KEEP customers
• Loyalty programs
• Product updates
• Customer satisfaction
• Contests / events
• Blogs / newsletters
• Social media

22. Customer relationships
Keep the metrics!
• # awareness / # consideration
• $ spend on adds / acquired purchase =
customer acquisition cost
First think about GET, once you have some think
about KEEP and GROW

23. Business model canvas
Revenue
streams

24. Revenue streams
NOT ONLY the price people are paying
Revenue stream = the strategy the company
uses to generate cash from each customer
segment
Pricing = the tactics you use to set the price in
each customer segment

25. Revenue streams
What value are customers willing to pay for?
How do customers pay today?
How much are they currently paying?

26. Revenue streams
• Asset sale: ownership of physical product
• Usage fee: proportional fee to usage of service
• Subscription fee: continuous access to service
• Renting: temporary access to good/service
• Licensing: fee for use of some IP
• Intermediation fee: bringing two parties together
• Advertising: fee paid by brands and companies for ads

27. Revenue streams
Common mistakes:
• Price on cost
• Price on value
• By default less than competitor’s

28. Business model canvas
Key
partners

29. Key partners
• Shared economics (2-way)
• Mutual success / failure
• Common customers
• Co-invention / co-development

30. Key partners
Risks:
• Impedance mismatch
• Timing mismatch
• No clear ownership of customer
• Product vision problems
• Different underlying objectives
• Churn in partners strategy / personnel
• IP issues
• Difficult to unwind / end

31. Business model canvas
Key
activities

32. Key activities
What is essential for you to be able to deliver
your value proposition?

33. Business model canvas
Key
Resources

34. Key resources
• Physical resources
– Company facilities
– Products / services
• Financial resources
• Intellectual resources
• Human resources
– Qualified employees
– Mentors / teachers / coaches

35. Business model canvas
Costs

36. Costs
What are your costs?
What are the most expensive resources /
activities?
Fixed / variable?

37. Tips on creating business models
• Separate colors for each customer segment
• Use sticky notes …
… but as few as possible
• Focus on quick communication
• Draw instead of write
• Explore lots of possibilities

38. • You sell your value proposition …
• to a customer segment …
• who you reach through some channel.
• You have an ongoing relationship to create
retention and lock-in.
= That’s how you make money

39. • To create the value proposition, you do certain
key activities …
• using your key resources …
• which costs you money.
• Anything you don’t do or have yourself, you get
from a partner.

40. EXAMPLE