Post on 20-Mar-2017
Business model & canvas
Frieda Brioschi / Emma Tracanella frieda.brioschi@gmail.com / emma.tracanella@gmail.com
IED, 6 Mar 2017Lesson 2/2017
2. Business Model & Canvas
Course program
1. Start-ups
2. Business Model & Canvas
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2. Business Model & Canvas
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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2. Business Model & Canvas2. Business Model & Canvas
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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2. Business Model & Canvas2. Business Model & Canvas
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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2. Business Model & Canvas
Business model canvas
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2. Business Model & Canvas
Business model canvas 1 – Value proposition
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2. Business Model & Canvas
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.
2. Business Model & Canvas
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
2. Business Model & Canvas
Business model canvas 2 – Customer segments
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2. Business Model & Canvas
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)
12http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
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.
14http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
Business model canvas 4 – Customer relationship
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2. Business Model & Canvas
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
16http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
Business model canvas 5 – Key partner
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2. Business Model & Canvas
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.
18http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
Business model canvas 6 – Key activities
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6 – Key activities
The most important activities in executing a company's value proposition.
20http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
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)
2. Business Model & Canvas
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
24http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
Business model canvas 9 – Revenue streams
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2. Business Model & Canvas
9 – Revenue streamsThe way a company makes income from each customer segment. • Asset Sale • Usage Fee • Subscription Fees • Lending/Leasing/Renting • Licensing • Advertising
26http://en.wikipedia.org/wiki/Business_Model_Canvas
2. Business Model & Canvas
The Business Model You
2. Business Model & Canvas
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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2. Business Model & Canvas
Nespresso
29http://www.businessmodelcanvas.it/case-studies/nespresso.html
2. Business Model & Canvas
Coca Cola
30http://sopinion8ed.wordpress.com/2012/11/23/the-coca-cola-business-model-and-their-competitive-advantage/
2. Business Model & Canvas
Financial Times
31http://glennas.wordpress.com/2010/07/31/business-model-innovation-alexander-osterwalder/
2. Business Model & Canvas
32http://bmimatters.com/2012/04/10/understanding-facebook-business-model/
2. Business Model & Canvas
33http://bmimatters.com/2012/02/18/understanding-twitter-business-model-design/
Poll
Analytics
2. Business Model & Canvas
Groupon
34http://www.adriaanrijkens.nl/2011/06/29/the-groupon-business-model-canvas/
2. Business Model & Canvas
35http://bmimatters.com/
SlideShare
2. Business Model & Canvas
36http://bmimatters.com/2012/04/18/comparing-facebook-and-google-business-models/
Map, Youtube
2. Business Model & Canvas
Spotify
37ù
2. Business Model & Canvas
Zara
38ù
2. Business Model & Canvas
Community models
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2. Business Model & Canvas
Geographically based
• neighbourhood
• productive district
• close to me
40http://www.oilproject.org/lezione/cos-un-business-community-model-6346.html
2. Business Model & Canvas
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
2. Business Model & Canvas
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
2. Business Model & Canvas
Business plan
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2. Business Model & Canvas
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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2. Business Model & Canvas
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
2. Business Model & Canvas
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