Business Model Canvas

“Dream jobs are more often created than

found , so they’re rarely attainable through
conventional searches. Creating one
requires strong
self-knowledge.”

― Alexander Osterwalder
 Topic Outline
• What is Business Model?
• Business Model Canvas:
1. Value Proposition
2. Customer Segments 6. Key Partners
3. Channels 7. Key Resources
4. Customer Relationships 8. Key Activities
5. Revenue Model 9. Revenue Streams
 Topic Objectives
After successful completion of this topic,
the students are expected to:
1. Identify problems that a product must solve
2. Analyze competitors and market leaders to
understand their strengths and weaknesses
3. Find a solution for your target audience’s problems
4. Find key partners to grow the development temps
5. Create a unique value proposition to make your
target audience use your app instead of all
alternatives
 Topic Objectives
6. Know who is your clients. You should know
where are they located, what are they interested
in, why do they want to use your product.
7. Research marketing channels. This helps you to
promote your app correctly.
8. Determine the best revenue stream for your
business
9. Identify key resources and activities.
 What is a Business Model?
• A business model describes how an idea
will create, delivers and capture value.
 How do they make money?

Product & service Subscription to a Ad revenue

sales service
How do they make money?

Commission Freemium
 Building Your Business Model
• You can visualize your business model
using a business model canvas
– Get outside the building
– Talk to potential customers, suppliers and partners
A Business Model Canvas
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS PROPOSITIONS RELATIONSHIPS SEGMENTS
ACTIVITIES

KEY
RESOURCES CHAN
NELS

COST STRUCTURE REVENUE STREAMS

A Business Model Canvas
 Value Proposition
• What game challenge are you building, for who, and
what problem does it solve?
• Get out of the building
• Learn what pains and gains the customer has
• Your solution solves a major customer problem/need
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

 Customer Segments
• Who are your customers and why would
they buy?
• Is the buyer the user?
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

 Channels
• How to reach your customers
• How does the product/service get to the
customer?
• Determine distribution channel (virtual or
physical)
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

 Customer Relationships
• How do you get, keep, and grow customers?
Paid Earned
Public Relations Speak at conferences
Advertising Blogs
Attend Trade Shows Guest articles
E-mail Social Media
Search Engine Word of Mouth
Marketing
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

 Revenue Model
• How does the company make money from each
customer segment?
• Pricing
• For what Value is the customer paying?
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

 Partners
• Who are the key partners and suppliers
needed to make the business model
work?
• Key partners
– What key activities do
they perform?

• Key suppliers
– What are we buying
from them?
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

Resources, Activities, Costs
• What are the most important assets
required to make the business model
work?
– Physical: machines, vehicles
– Financial: raising money, credit
– Human: programmers, designers, managers

• What are the costs to operate the

business model?
– Fixed: rent, machinery
– Variable: wages, utilities, materials
The Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas
Key Partners
• Who are our key
partners?
• Who are our key
suppliers?
• Which key resources
are we acquiring from
our partners?
• Which key activities
do partners perform?
Key Activities
• What key activities do our
value propositions
require?
• Our distribution channels?
• Customer relationships?
• Revenue streams?
Value Proposition Customer Customers
• What value do we Relationships • How do we get, keep
deliver to the customer? and grow customers?
• How do we get, keep and
• Which one of our • Which customer
grow customers?
customers’ problems are relationships have we
• Which customer
we helping to solve? established?
relationships have we
• What bundles of • How are they integrated
established?
products and services with the rest of our
• How are they integrated
are we offering to each business model?
with the rest of our
segment? business model? • How costly are they?
• Which customer needs • How costly are they?
are we satisfying?
• What is the minimum
viable product?

Key Resources
• What key resources do our Channels
value propositions require? • Through which channels
• Our distribution channels? do our customer segments
• Customer relationships? want to be reached?
• Revenue streams

Cost Structure Revenue Streams

• What are the most important costs inherent to our business model? • For what value are our customers really willing to pay?
• Which key resources are most expensive? • For what do they currently pay?
• Which key activities are most expensive? • What is the revenue model?
• What are the pricing tactics?
 Class Activity
• Create a group with 2-3 members each group
• Decide on a company name
• Decide on a unique product your company will
produce
• Create your Business Model Canvas for your
product
• Make a PowerPoint presentation of your work
and prepare for a presentation next meeting.
Thank you!!