BUSINESS

MODEL
CANVAS
ALEXANDER
OSTERWALDER AND YUES
TIGNEUR

1
 BEST WAY TO PREDICT
THE FUTURE IS TO
CREATE IT

PETER DRUCKER

2
MEANING OF BUSINESS MODEL
CANVAS

• The business model canvas is a great

tool to help you understand a business
model in a straightforward, structured
way.
• Using this canvas will lead to insights
about the customers you serve, what
value propositions are offered through
what channels, and how your company
makes money.
NINE BUILDING
BLOCKS
THESE BLOCKS SHOW THE LOGIC OF
HOW A COMPANY CAN MAKE
MONEY
 CUSTOMER VALUE
CHANNELS
SEGMENTS PROPOSITION

CUSTOMER REVENUE KEY

RELATIONSHIP STREAMS RESOURCES

KEY COST
KEY ACTIVITIES
PARTNERSHIPS STRUCTURE
6
1.CUSTOMER
SEGMENTS
• CUSTOMERS WHICH
ENTERPRISE AIMS TO REACH
AND SERVE
• IMPORTANT TO UNDERSTAND
WHICH CUSTOMER SEGMENT
TO SERVE AND WHICH TO
IGNORE
• SEGMENT- DIVIDING
CUSTOMERS INTO
HOMOGENEOUS GROUPS
 TYPES OF
SEGMENTS
• MASS MARKET
• NICHE MARKET
• SEGMENTED
• DIVERSIFIED
• MULTI SIDED
PLATFORM
2. VALUE PROPOSITION

➢ WHAT IS THE BENEFIT YOU

GIVE TO THE CUSTOMERS?
➢ DESIGN
➢ CUSTOMER EXPERIENCE
➢ ACCESSIBILITY
➢ BRAND,STATUS, NEWNESS
➢ PERFORMACE
➢ CUSTOMIZATION
 ➢ DESCRIBES HOW A COMPANY COMMUNICATES
WITH AND REACHES ITS CUSTOMERS TO
DELIVER VALUE PROPOSITION
3. CHANNELS ➢ TYPES- DIRECT(OWN) AND
INDIRECT(PARTNER)
CHANNELS SERVE SEVERAL
FUNCTIONS
HELPING CUSTOMERS
AWARENESS EVALUATE COS VALUE
PROPOSITION

ALLOW CUSTOMERS DELIVER VALUE

TO PURCHASE PROPOSITION TO
SPECIFIC PRODUCTS CUSTOMERS

PROVIDING POST
PURCHASE
CUSTOMER SUPPORT
 MARKETING
CHANNELS
1. WEBSITE
2. EMAIL MARKETING
3. BLOGS, SOCIAL MEDIA
4. COMMUNITIES
5. SEARCH ENGINE OPTIMISATION
6. VIRAL MARKETING
7. PAY PER CLICK
8. DIRECT MAIL TELE MARKETING
9. PRESS AND ONLINE MARKETING
10. TV AND RADIO
 4. CUSTOMER
RELATIONSHIP
➢ HOW CAN I CREATE RELATIONSHIP
WITH MY CUSTOMER?
➢ MAY BE DRIVEN BY CUSTOMER
ACQUISITION, CUSTOMER
RETENTION,BOOSTING SALES
➢ DEDICATED PERSONAL
ASSISTANCE- CITI BANK
➢ CUSTOMER SERVICE
➢ DEDICATED COMMUNITIES
➢ COMMUNITIES OF CUSTOMERS
➢ AUTOMATED SERVICE
➢ CO-CREATION
 ➢ REPRESENTS CASH THAT
COMPANY GENERATES WHILE
SERVING CUSTOMERS

5.REVENUE ➢ TRANSACTION AND RECURRING

REVENUE
➢ WAYS TO GENERATE REVENUE-
STREAMS 1) ASSET SALE
2) USAGE FEE
3) SUBSCRIPTION FEE
4) LENDING/RENTING/LEASING
5) LICENSING
6) BROKERAGE
7) ADVERTISING
 6.KEY RESOURCES

WHICH RESOURCES CAN BE EVERY RESOURCE PHYSICAL

RESOURCES/ASSETS OWNED/LEASED OR OR ASSET SHOULD ,INTELLECTUAL,
ARE ESSENTIAL ACQUIRED PROVIDE BENEFIT HUMAN, FINANCIAL
7. KEY
ACTIVITIES

➢ DESCRIBES
THINGS/ACTIVITIES
NEED TO DO
➢ PRODUCTION
➢ PROBLEM SOLVING
➢ PLATFORM/NETWORK
8. KEY
PARTNERSHIPS

➢ PEOPLE WITH WHO YOU

CREATE ALLIANCE
➢ PARTNERING IN 4 WAYS

1. STRATEGIC
ALLIANCE BETWEEN
NON-COMPETITORS
2. COOPETITION
3. JOINT VENTURE
4. BUYER SUPPLIER
RELATIONSHIP
9.COST
STRUCTURE

➢ Which are the important cost incurred?

➢ Which key element reduce cost?(frills)
➢ Two dimensions of business cost
drivers-Cost driven (call centres)
➢ Value driven (J .W. Mariott)
➢ Need to shift from cost driven to value
driven
➢ Economies of scale to economies of
scope
➢ Different costs- fixed costs, variable
costs
 PITCH

➢ WHAT IS THE CUSTOMER PROBLEM?

➢ WHAT IS THE SOLUTION?
➢ HOW WILL YOU MAKE MONEY?