A business aims to ... -- > Produce and sell products and/or services, which ... -- > Generates revenue, covering and preferably ex ceeding the costs Strive for (economic) sustainability, and preferably growth Requires a sensible, integrated strategy Business model Canvas Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships What to do to create value? What is offered? What kind of relationship? What external partners do l need to create value? Key Resources Channels What is needed to create value? Reach customers how? 9 fundamental building blocks Cost Structure Customer Segments Who are the customers? Revenue Streams How is money flowing in (all possible sources)? What needs to be spent to create value? Value Propositions . .. >What are you offering consumers, i.e., what value for their money? · Promise to solve a problem, address a necessity -Think needs and desires . No so much the good or service itself, but what it likely means for the customer · By offering (bundle) of goods and/or services Customer Segments · Who are we targeting the value proposition at, i.e., who are our costumers? · One size rarely fits all: consider segments of consumers (needs, characteristics and size) · Why might these potential consumers be interested in your offer? Channels . How to reach consumers with a product/service, and how to communicate? Marketing channels ti awareness and promotion · Facilitate purchases - deliver the promised value · Aftertisales service, customer relations management Customer Relationship · Types of customer relationships, emphasis on ... · Recruitment - Effort into attracting new customers . . Conservation - Effort in keeping existing customers Upselling - Effort in getting existing customers to spend more Key Activities · Activities aimed at generating a value proposition · Production: research, design, prototype, produce and deliver product
· Problemtisolving: solutions individual problems ti services · Platforms/networks ti mediate, match Key resources · Resources needed to create value · Different types · Physical: fixed assets ti production capacity, accommodation, distribution network · Intellectual: brand names, patents/copyrights, partnerships, data · Human: human resources, talent Financial: cash, credit lines, investments Key Partners · Who do you need to partner up with? · Roughly four types of partnerships: · 1. Provide buyertisupplier relationships to ensure reliable delivery 2. Strategic alliances between nonticompetitors · 3. Cotioption: alliances between competitors · 4. Joint ventures: developing new activities Cost structure . What needs to be spent to create value? · Fixed costs: constant costs, regardless of volume of production · Variable costs: costs varying with the volume of production Revenue streams · Income generated from all types of customers · Different pricing mechanisms: onetitimetioff or recurrent? · Asset sale, Usage fee, Subscription, Advertising, Rent/Lease, Licensing and brokerage fee Revenue streams Fixed prices · List price · Feature-dependent · Segment-dependent · Volume-dependent Dynamic prices · Negotiated · Yield management - dependent - time/availability · Real-time market - supply/demand · Auction Price Mechanisms