Business Model & Canvas (v. 2017 eng)

Business model & canvas

Frieda Brioschi / Emma Tracanella [email protected] / [email protected]

IED, 6 Mar 2017Lesson 2/2017

mailto:[email protected]

mailto:[email protected]

2. Business Model & Canvas

Course program

1. Start-ups


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Business Model

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2. Business Model & Canvas2. Business Model & Canvas

Business Model /1

A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value).

The process of business model construction is part of business strategy.

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Business Model /2

It's a way to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

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Business Model /3

The essence of a business model is that it defines the manner by which the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit: it thus reflects management’s hypothesis about what customers want, how they want it, and how an enterprise can organize to best meet those needs, get paid for doing so, and make a profit.

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Business model canvas

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Business model canvas 1 – Value proposition

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1 – Value propositionThe collection of products and services a business offers to meet the needs of its customers. It's what distinguishes itself from its competitors.

It provides value through various elements: • newness, • performance, • customization, • "getting the job done", • design,

9http://en.wikipedia.org/wiki/Business_Model_Canvas

• brand/status, • price, • cost /risk reduction, • ecc.


Build the Value Proposition• Market: for which market is the value proposition being created?

• Value/customer experience: what does the market value most? The effectiveness of the value proposition depends on gathering real customer, prospect or employee feedback.

• Offering: which products or services are being offered?

• Benefits: what are the benefits the market will derive from the product

• Alternative e differentiation: which alternative options does the market have to the product or service?

• Proof: what evidence is there to substantiate your value proposition?

10http://en.wikipedia.org/wiki/Value_proposition


Business model canvas 2 – Customer segments

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2 – Customer segmentsA company must identify which customers it tries to serve. Various set of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients.

The different types of customer segments include: • Mass Market • Niche Market • Segmented • Diversify (multiple customer segments with different needs

and characteristics)



Business model canvas 3 - Channels

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3 - Channels

A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective.



Business model canvas 4 – Customer relationship

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4 – Customer relationshipTo ensure the survival and success of any businesses, companies must identify the type of relationship they want to create with their customer segments.

• Personal Assistance • Dedicated Personal Assistance • Self Service

Automated Services • Communities • Co-creation



Business model canvas 5 – Key partner

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5 – Key partnerIn order to optimize operations and reduce risks of a business model, organization usually cultivate buyer- supplier relationships so they can focus on their core activity.

Complementary business alliances also can be considered through joint ventures, strategic alliances between competitors or non-competitors.



Business model canvas 6 – Key activities

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6 – Key activities

The most important activities in executing a company's value proposition.



Business model canvas 7 – Key resources

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7 – Key resources

Are the assets required to offer and deliver value proposition to the customer.

• Physical • Intellectual • Human • Financial

22http://en.wikipedia.org/wiki/Key_resources_(business_model)


Business model canvas 8 – Cost structure

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8 – Cost structureThis describes the most important monetary consequences while operating under different business models.

• Fixed Costs• Variable Costs • Economies of Scale • Economies of Scope



Business model canvas 9 – Revenue streams

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9 – Revenue streamsThe way a company makes income from each customer segment. • Asset Sale • Usage Fee • Subscription Fees • Lending/Leasing/Renting • Licensing • Advertising



The Business Model You


The Business Model CanvasDuring last lesson we discussed what is a business model and how fulfill a business model canvas, looking into each part:

• Value proposition

• Customer segments

• Channels

• Customer relationship

• Revenue streams

• Key resources

• Key partner

• Key activities

• Cost structure

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Nespresso

29http://www.businessmodelcanvas.it/case-studies/nespresso.html


Coca Cola

30http://sopinion8ed.wordpress.com/2012/11/23/the-coca-cola-business-model-and-their-competitive-advantage/


Financial Times

31http://glennas.wordpress.com/2010/07/31/business-model-innovation-alexander-osterwalder/


Facebook

32http://bmimatters.com/2012/04/10/understanding-facebook-business-model/


Twitter

33http://bmimatters.com/2012/02/18/understanding-twitter-business-model-design/

Poll

Analytics


Groupon

34http://www.adriaanrĳkens.nl/2011/06/29/the-groupon-business-model-canvas/


LinkedIn

35http://bmimatters.com/

SlideShare


Google

36http://bmimatters.com/2012/04/18/comparing-facebook-and-google-business-models/

Map, Youtube


Spotify

37ù


Zara

38ù


Community models

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Geographically based

• neighbourhood

• productive district

• close to me

40http://www.oilproject.org/lezione/cos-un-business-community-model-6346.html


Professional community

• All the people making the same job.

• It’s an easy target.

41http://www.oilproject.org/lezione/cos-un-business-community-model-6346.html


Online community

• Easy to reach (massive tools available)

• There’s no clear limits between being part of a community and a company business (let’s think of UGC)

• Online users are available to pay for an interesting service (freemium!)

• Can be created as part of my business (i.e. Amazon’s bookshops network)

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http://www.oilproject.org/lezione/cos-un-business-community-model-6346.html


Business plan

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Business plan

• Business plan describes what, how long e how much money you need to realize your business model.

• Usually a business plan is a doc both for internal and external use. Internally it describes the company strategy, externally it presents the project to stakeholder.

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Business plan• Writing a business plan help to clarify every company

activities and

• optimize and develop available resources

• improve consciousness on financial aspects, cash flows, break even, etc.

• Analyze risks

• Identify path to specific goals

• Etc.

45http://www.nascelimpresa.it/doc/guida_BUSINESS_PLAN.pdf


Business model Vs Business plan

Plans are static…

models are dynamic!

- Steve Blank -

46http://www.slideshare.net/sblank/bus-model-and-cust-dev-jan-2013

Business Model & Canvas (v. 2017 eng)

Education

Transcript of Business Model & Canvas (v. 2017 eng)