4.5 business model canvas
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From the book by alex osterwalder . Buy it and get a lot more info than is posted here. Check out http://www.businessmodelgeneration.com
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4.5 business model canvas
- 1. This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rick Rasmussen and do not necessarily reflect the views of USAID or the United States Government. The Business Model Canvas 1
- 2. Business Model Canvas • A tool designed to analyze all parts of your business and how they fit together • Test and hypothesize, continuous improvement • A “dashboard” for the company • Employees can see and contribute 2
- 4. Value Propositions – Center of the model… • What value is delivered to the customer? – Which problems are we helping to solve? – Which customer needs are we satisfying? • What are customers willing to buy?
- 5. Examples of Value Propositions Newness Performance Customization “Getting the job done” Design Brand / Status Price Cost Reduction Risk Reduction Accessibility Convenience / Usability
- 6. Key Activities • What is required to support the Value Propositions? • Set up distribution channels • Establish customer relationships – Access – Traditional – Social Media • Generate revenue streams • Chase categories – Production – Problem Solving – Platform / Network
- 7. Key Resources • Who can help us support the value propositions? • Resources needed: – Physical (facilities, machinery, etc.) – IP – Human • Hires • Contractors – Financial • Money, banking, … – Distribution channels
- 8. Key Partners • Porter Model… • Suppliers • Vendors • Supporters • Motivation for Partnerships: – Optimization and economy – Reduction of risk and uncertainty – Acquisition of particular resources and activities
- 9. Cost Structure • The most important costs inherent in our business model • Worry about your largest costs: – Expensive Key Resources – Expensive Key Activities • Is your Business: – Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) – Value Driven (focused on value creation, premium value proposition, services, customer satisfaction) • Sample Characteristics: – Fixed costs (salaries, rents, utilities) – Variable costs
- 10. Customer Relations • Types of relationship each Customer Segment expects us to establish and maintain with them • Which ones have we established? • How are they integrated with the rest of our business model? • How costly are they? • Examples: – Personal assistance – Dedicated personal assistance – Self-service – Automated Services – Communities – Co-creation
- 11. Customer Segments • For whom are we creating value? • Who are our most important customers? – Mass Market – Niche Marketed – Segmented – Diversified – Multi-sided Platform
- 12. Revenue Streams • For what value are our customers really willing to pay? • For what do they currently pay? • How are they currently paying? • How would they prefer to pay? • How much does each Revenue Stream contribute to overall revenues? • Types: – Asset Sale – Usage Fee – Subscription Fee – Lending / Renting / Leasing – Brokerage Fees – Advertising
- 13. An Example
- 14. Tools for design and collaboration • Yellow stickies on a wall • For your iPad www.businessmodelgeneration.com/toolbox • Business Model Canvas https://www.leanlaunchlab.com • http://list.ly/list/9E-tools-and-services-for-a-lean-startup • Strategyzer 14
- 15. Key Partnerships Key Activities Value Propositions Key Resources Cost Structure Revenue Streams Customer Relationships Channels Customer Segments Billboards (street, airports, bus terminal) Joint venture Cityblis Sponsors Events/promo Retailers New... Content Direct marketing on steroids Increases online store conversion Affiliate commisiso ns Platform development and network License fees for media Advertising on bloggers' sites Emerging brands Trend Setters Automated services Community Switching costs From self- service to personal or dedicated assistance Financial Sales team Convenient automated search product and reviews Dev. team Add to my style and status Dev Team Platform network/ development Platform promotion marketing Content management and sourcing Service to media Mass market shopper Expanded distribution Forefront stores Service to retailers Save money and time: Price and sales alerts Increases sales/ customer Brand Buzz Analyst Increases in store and online sales Customer acquisition Marketing and sales Sales team Retailers (in store, fitting rooms and front store Brandbuzz Analyst BrandBuzz Analyst Sales team Shopping malls (Publicitad) Magazines Billboards plugins on retailers' websites pop-up stores Wikitude Aggregated data reportsPremium subscriptio ns community Manager and Retailer Specialist Publicitad Joint Venture: Publicitad Print (media) Community management and retailer specialist Seamless user experience Brand Buzz Data and revenue for media Customization: mix and match color match Bragging points Shop'nBrag A/R shopping Guide Data on consumer trends telecom? Boku?
- 16. Other Canvases • Lean Canvas – https://leanstack.com • Startup Cup Canvas
Hinweis der Redaktion
- Value Propositions==================Add to my style and status : People love to be in the know and being followed for your taste or knowledge is flattering. Brand Buzz : Access to new brands and hot products. VIP treatment would allow to buy products even before they hit the stores. This would be from The Find, which is a small booklet published every season. It targets buyers at retailers' stores. It introduces emerging and promising brands and presents the collection one year ahead of time, so buyers can add these products to their collection for the next season. We could add these "hot and trendy" products to our application in a specific section called Brand Buzz. It would be targeting trend setters who like to be in the know and give them a status as they could order products before they hit the stores.The other interest of working with the Find is the expertise of the 2 sisters who have developed this concept. They could become our in-House stylists for advice to users interested in subscribing to a premium service. Convenientautomated searchproduct andreviews : I just need to add something to my shoplist to get either products recommendations or reviews or even coupons (when applicable)Customization:mix and matchcolor match : For clothing, instead of saying "people who buy this also bought...." we would provide a recommendation for outfits, based on the item added to the shoplist or viewed by the user.This would also find products based on colors to create nice outfits. S'nB allows users to create shoplists and to store purchased products. (this part would be free)Mixing both, ("wants" and "have") they can create board for different outfits (instead of putting all the clothes on the bed trying to figure out what is missing and what would be nice with what)for a more personalized mix and match users could susbscribe to a premium service: level 1: receive every month a personalized shopping list based on previous purchaseslevel 2: Work with a stylist at mixing and matching purchases with wish list. Data and revenue for media : The advantage of print media to use our application is as follow:- access to data unavailable now: Number of people who buy a product after seeing an ad Number of people who visit a website after seeing an ad. - time between the moment a user sees an ad and buy the product.- stats about sharing with a friend.but alsoAggregated data on consumers' behavior Benchmark between reader's behavior and general behavior. Tools to attract new advertisers through a better knowledge of their readers' profilesData on consumer trends : Yipit currently regroups deals from Groupon, and many others. They send daily emails to subscribers. They charge $495 for a summary report $1895 for an personal analyst call and $9995 for raw data. This can be used by retailers to better target their customers or identify new segments. It can also help to improve the quality of their inventory to better meet consumer's expectations and needsDirect marketing on steroids : Transform print media into an interactive media; Using augmented reality the ad can be turned into an online store or can be used to show a video or offer a coupon to add to the magazine ad seen by the userExpanded distributionForefront stores : Each shopping list is a forefront store. This is a turning point, this is where the shopping experience totally change. This is where Shop'nBrag becomes the Linkedin of shopping. Actually, this is the vision: Candidates become shoppers; employers become retailers and like linkedin they need to qualify each other before building a relationship; like linkedin, shoppers first trust people they know when it is time to get advice.S'nB aims at being the unique hub where to have advice from trusted connections, where to "qualify" brands, and retailers, while retailers can qualify consumers. The unique hub where retailers and consumers can engage in a dialogue (after qualification)and finally, the unique hub totally built on the power of word of mouth and influence from peers. Succeeding in doing this will transform Shop'nBrag from a social shopping assistant into a social shopping mall. Increases in store and online sales : Presents the right product at the right time. e.g. present products recommendations when a user adds a reminder to his shoplistPresents products matching items on my shoplist when I walk into a store (if participant store)Increases online store conversion : Retailers can add a plugin for each product on their online store allowing visitors to add items on their shoplist if they are not ready to buy. This gives the retailer the opportunity to send special offers and increase conversion ratesFrom a user's perspective, we can achieve the same result with a toolbar bookmark (such as Springpad or Pinterest) that would add products to the user's shoplist. Increases sales/ customer : Application could be available on an ipad inside fitting rooms. A user could scan the barcode of an item (with his phone) to see other products from the store to create an outfit. (on the ipad by bluetooth sync) ???It could also show other colors or available sizeandcould send a text message to Sales assistants in store who could bring required garments to the fitting room. Seamless userexperience : This is the ultimate goal. To eliminate as many frictions as possible. This would mean for example: Sales alerts (or price change) for items on my shoplistSave my personal information (size for clothing, shoes)Save my payment information and pre-filled checkout on retailer's store. I just need to confirm to buy (might not be feasible for now) It also means in store and it also means an easy access to the level of advice I want and the level of privacy i want. In short, the user should not have to spend time searching what he needs, or the best deal, or where to find it, or even reviews. It should all come to him when he adds something on his shoplist. This should mean:Sales alerts for items on my shoplistSave my personal information (size for clothing)Save my payment information and pre-filled checkout on retailer's store. I just need to confirm to buy Shop'nBragA/R shopping Guide : This is for both retailers and shoppers.Shop'nBrag would have the an augmented reality shopping guide for each great city: London, Paris, Milan, Tokyo, Shangai, Los Angeles. New York. It would do 2 things: A) I have a map of the city and I can see on a map the places where I can go. so, it gives a circuit Each point of the map would have a short description. Once in the area, I could see A/R directions, information and offers just by pointing my phone towards the street I am walkingOur users could susbscribe to a Shopping Tour guide when traveling (free or premium service) "Real" shoppers would kill to have the list of trendy shops and spots where to go when traveling to cities like Paris, London, Tokyo, Shangai, Hong Kong, L.A. New York. We could offer one that is in Augmented Reality So, I get a map of the city and can see the where to go. Any special offers will be visible on the map. I can see if people I know where there and I can see reviews.This is also interesting for retailers which can attract tourists. We could also have the service sponsored by an Airline or a telecom companyCustomer Segments=================Emerging brands : Provided by the FindChannels========Retailers (in store, fitting rooms and front store : We could consider offering our application in retailer's fitting rooms. Benefit: user can see products matching an item he is trying and likes without getting out of the fitting room. (products he may have missed while looking around before getting in the fitting room) Execution needs some thoughts. Wikitude : Need to verify what it implies. Wikitude (the A/R technology we use) allows developer to publish their augmented reality images within Wikitude's app; thus increasing visibility for those images. but I don't know what else is in it for us...On the other hand, we should consider how we can attract developers working with retailers to use our app. ... pop-up stores : In the same way that Yelp was organizing "parties" for its users when they started, we could consider to have pop-up stores. This would give retailers the opportunity to :market test new products.clear some inventorytest markets where they are not implemented yet. For users: this would be considered as a private sales. Only open to S'nB users. On invite only. Customer Relationships======================Switching costs : Succeeding in offering a complete and seamless experience should lead to high switching costs for our usersKey Resources=============Dev Team : Ruben Cagnie as tech lead for front end. We need to add a CTO and at least one back endKey Partnerships================Billboards(street, airports, bus terminal) : Billboards on the street, at airport are also looking for innovative way to attract advertisers. I have good connections with Astral, one of the largest media company in the field in Canada. We could add A/R to their billboards (so sell a license) Joint Venture:Publicitad : This is a partner and channel. They offer a service of personalized radio to retailers and shopping malls. They could include an in-store offer from S'nB.The idea is to have a map of the shopping mall with 3d offers on the map when a user walks in a shopping mall. Offers would be valid only for the day. For individual stores, we could add the feature of matching in store products with user's shoplist or in a more simple way. Make offers valid if used right away. Joint ventureCityblis : To be exploredPrint(media) : Building alliances with print media could make a big difference for Shop'nBrag. It could open doors very quickly with retailers and brands. The idea is to make an offer that will be attractive enough for these media to accept to do 2 things: a) give us a big advertising campaign for free. b) Put their sales force at work for us.We also need to keep in mind that we cannot close the door to a direct relationship with retailers; so our pricing point will need to reflect that. If I compare with competition (e.g.: Layar.com) They charge per page. It is free with ads; 15euros per page or 999 euros for 100 pages.A retailer may not have a lot of pages; if so 15E is very affordable especially that once an ad is in our system, it becomes "recognizable" no matter where it is published. Conversely a magazine will have limited possibilities for a "re-use" of the uploaded image. Maybe for 1, 2 or 3 magazines if they have different properties. Magazines will need to charge the advertiser/magazine. So, to protect our deal with the magazines while still serving customers directly, we need a lower pricing point for retailers. Low enough to allow them to see their alliance with us as profitable. Also, for reporting, we could consider offering access to different data; as an example, Aggregated data for magazines + data by magazine and for retailers data/ad but not by magazine.? SponsorsEvents/promo : Sponsorship can apply to promotion, pop-up stores or to A/R Shopping guides. (airline or telecommunications companies could be interested in this)telecom?Boku? : I had a meeting with a telecom company from Danemark (I think, need to go back to my notes)they were looking for apps to add to their offer. They offer packages to their subscribers that includes a lot of service including free apps. They were looking for something around shopping. At the time, I had an idea, nothing else, so we discussed and they said to reconnect once I would have a demo. ... might be worth it to explore further. boku is a company from San Francisco that has the relationship with many telecom. Boku is a payment service allowing people to buy online and to use their phone to pay. The transaction is simply added to their monthly phone billI know Boku's CEORevenue Streams===============Advertising on bloggers' sites : The idea is that instead of polluting our app with ads, we could create a widget for bloggers that would display products from our application. we would have to share revenues with these bloggers, but it could be a nice extension of our application and website to build awareness.Aggregated data reports : Yipit currently regroups deals from Groupon, and many others. They send daily emails to subscribers. They charge $495 for a summary report $1895 for an personal analyst call and $9995 for raw data. This can be used be retailers to better target their customers or identify new segments, or to improve the quality of their inventory to better meet consumer's expectations and needsPremium subscriptions : Some users really would like to have personalized advice and recommendations. in other words a personal stylist like a Star. We can do this in 2 ways: A premium monthly subscription that will send automated recommendations every monthA seasonal review of purchases items and wish list with creation of outfits for the season. (for a flat fee every season) JustFab: they offer a monthly service for $39.95/month; every month they recommend shoes to buy. If you don't buy; you are charged but have a credit that you can apply later. All shoes or boots are at $39.95Cost Structure==============Bragging points : A user that shares his shoplist would receive points that could be applied to his next purchases. Each user would also have points every time a new person follow them. Ideally, this would be when I invite a user I receive a gift card and the new user also receives one, This would be applicable only on the first purchase of the guest.