Customer Segments ‘The Customer Segments Building Block defines the different groups of people or organizations an ‘enterprise aims to reach and serve ‘Customers compre he heart of anybusinss model Without Customer groups represent separate segment if (rota) customers company can survive fr long Inordet = Ther mend ei and justify dtint fer tobettersetisfycustomers.acompany meyeroup them into + They are reached dough difirnt Distribution Chants Aistint segments with common needs, commen behalors, + They requie deren pes ofrlatonships forother ruts Abuses model may define one or several + Thayhave substantial diferent profitable large or sal Coster Segments An ongniztion mest make + Thy ae wing to pay for difirent spots ofthe ofr conscious decison shout which segments to serv and which ‘segments to ignore, Once this decision s made a busines mode. canbe caefilly designed around astongundersandingof specific customer needsFor whom are we creating value? Who are our most important customers? odes ted ator Seen ‘hyn nan bs Fer el herein pe fr ts, in2008 Amaonc deiea way al ecoxsowermper ans Sig" oping ac: cn seemed song spceando deine enn Ten tara Sone barensnadesdengshttrs mat slates tov doe ste roe mote aedonmasranns drt segrens wah sigh tent nczandpenens. Sagront—Wubeimpnie theta det itveuetveentiver Cisne egmects Teal amofs bk ba Chim rear, ae Popadion Te state teri en is ‘evaie eats tuto Cav and raydsirguahttnans ee gaipctatenam Son cone onl Amsoncrs pone Catone atorsipsa serene” sahfssesgmsetstup US 100000 an uaiten which by ea es slastones mtnbeadysintrreusonfcrabereazraleoin talons ehot ere cpn ant ew cul comping seneant Tmeneeolusresmoteatantaesinnw —wethecens US #08000 Bath santa oui oasis seer Sintering shasta pao or mised ais) rotatictor tuba bulrgbindsd Cait Smeets see Wo me Meee eae Sioestteemele ciate eProp dt Catone Seen Ac cdeampy. ‘gece cade Segre Tee snd eur senna Con Mrs Pecon Prsster DithsanChawsianl isons Stra ubihspeu npg oss usnspsoolisoestttescecte rein: icmancldeven andar Insofankbomstet Swine meets eet Crime egment—toe Orhan abe meth adertoe fare seectesfundinagplatiereantis For wah naa er ty, deel rodent Bother ‘sara maya mandacus epoch odemabon serach ert ain tyes od we ead npr ten moraines. ae Popaton, erent matin paemson 9 8.Value Propositions ‘The Value Propositions Building Block describes ‘he bundle of products and services that create value for a specific Customer Segment “The Vaue Propotion ithe reaoa why customers tu to one ompany over anather, salves custome problem or satis fs estomer need ach Vale Proposition consis ofa lected Indl of products and/or servicer hat enters to the requirements ‘asec Cuetomer Segment Is the sense the Vue Proposi= ‘Son oan aggregation, or bund, of benefit thats company ‘Sore Vale Propositions may belnovative and represent new or disruptive oer, Othersmay be simi exiting market offers but with added fesse and ateibatesWhat value do we deliver to the customer? Which one of our customer's problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? to te tomer Ca phones rite cena ew ty and odatsneh are nei ve eto do wero ea Ingres plore ‘TreFC attained i fr era roves rat Senprondpetaraneshe 2 ns oc yea fran ler Fs meek ape sen andbate pases ae roe “ening pontine sen cotentaton ‘howe pedis stoic tess Segments vin rect ye sshectsgadaninstecmonian ekesting ob de” ‘erm ssi none 08a noises sees ri i, alee lreyhur serene een Dai anny tet arnt a sie Apa ay strd ou ews espa eg eopcanbes prey moa dil te aigaaae tong sth orearle Ont nd “end tanto ho tty aoe" (tere sna le aso per acoon tty erate presente Cae fone Segments ato Ve psn a trotting teeta cot ry resale ses ‘melee tw enlelow eta ea Dosererrlels precise ones encontrado sede yi don cogent ‘easing see asthe sore ‘tan mows ei sang ‘recreazgesta tne mal fe ohhectrbcon city romon ff aacatararsiebcacnsteningiet Matyas ondseles oa tit = seytooete ron Ssketroncom erearel, etapa inde aaa on SslsstowieCntnerReiotipmeageret —saylocmaele This ume a (Cespieton Mhaewensbuyeomihe mod ot ew edge enn st eps sftilesthoy tobi nd Gantt a tre tnd sims | me Cisne renee. conse eral patstomertp seg “= lanai senna Nth tle ri > ekrtcon seandcapaatins ses patie aie pet Conerelaedng tees teyinar evn mattis caterer a tem, sinpucuungpecisersevesforavend fn one camer “ Sctomamntnttganaiis Sahn nye tem | kundeotentapuchewrofousnuneT porn © emetic Malgoire ceo nes ein ne dving seChannels ‘The Channels Building Block describes how a company communicates with and reaches: ‘Customer Segments to deliver a Value Proposition ‘Communication, dsribtion, and sles Channels comprise companys interface wth customers. Channel ae cst touch pots hat play an important le inte customer experience (Channels serve Sever fnctios including + Reising ewarnss cmong customers boa company’s products and eric + Hedpingcastomers evolaat a company’s VaiePropesion + Allowing customers purchase pete rt ond sic + Dalveringa Vale Proposition to cuomers + Providing post parhae coor suportThrough which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? hele fees Shanon can een ag ise th sewrsen ral fe phi, eco igus apn oa toh pre Chea eth weit heel onndntone arllss sit ith Ona home eae ce ‘eceroured Chana pormr Ch. aninhoesaler fre ra We se ry canbe Inde ua a tenor pee Fag ah ikl Cnn tashow ‘aso want be rec cn ng {Nave PepestontomattAncpiatoncan ‘arpa oad Wa te a — | ‘Sslafce 7 woe owdowerestame- — Hordeehop oti oc ona Serie ope? frenparne sega Oura Che dpa ley ron er mai bc ety topstinpaceasto oat he ek othe rigtalecebeweent ae pecan, tong tanner citar sooo, hare Popeon ocr” pores ctome SeatCustomer Relationships ‘The Customer Relationships Building Block Inthe cart days, for xample, mobil network operator Customer describes the types of relationships acompany _Réstlonships were driven by aggresive sequistion stnteies establishes with specifie Customer Sezments, lnvolving fee mobile pons. When the marketbecame staat, ‘Reompanyshonldclatiytherypeofrationsipiewantto operators itched to feusingon customer retention and ineess- ‘ccablsh with each Customer Segment Rlaionshiscan range iaveagerevente per customer, for peronal to atonsted Caste eleionship maybe ‘The Customer Relationships called for by company’s business riven by he following motions: model dep infuses the overall customer experienc * Cusamer aon + Booting sales (ast)What type of relationship does each of our Customer =i Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model? eondiigtermensomlcoepiy Seance creme Stipe widvmgyerting ntti cana mareans orn he pera ecrsinwah cine poieral ie eo Semen resin meas rca hans ‘cine heey ova ds athens eter agen sft preempt Ts ay agen, eae portot se owas yen ever dite priate ewitehpmadesceeaingzcasinr pavement ‘eres sectcay ea alee ‘morc th cheat inept amin ‘sont rama Solos cw slogging ues ung ‘osha seamaster “line rie bye or age conten nt ict canen foro can. ‘eben selva warns Sean tcteceamion ean fomlieyncoinigestoratainpeand mans bal aly wontons hea ad4 Revenue Streams "The Revenue Streams Building Block represents the cash a company generates from each Customer ‘Segment (costs must be subtracted from revenues to create earnings) eastomers comprise the heart of business model even Streams ar is arteries A company ast ask tel For what ale isench Customer Segment tray wing pay Successfully nswering that question allows the em to generate one or more even Stearns rom each Castmer Seren! ach Revene Stam say have diferent pricing mechanisms such sxe list prices berisining auctioning market dependent, volume depen tent oye management busines model ean involve twodfrent ype of Rerenae Steams: 1 Transaction reves resulting fom one-ne customer paynents 2, Recurring revenue resin fom ong payment 1 ether sive a Valu Proposition to casters or provide pos purchase ‘customer suppor’For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? ‘oversnelway topo Rent Same; Seca fomnecip.Zpemcon ros spr aan TsRereue Steamist by lectins Theconpy loco oe cyte tows pted esenin minscargoes “Tsenve Steen eiveckomintrmsan Haken somite difint ie saviceonadenbeatlaormrepatie. mecha The orafg canis coer Cdnendamices angi saceies—ohmulea kg aiomaentemefree ge byotnespoutagctienbeslehaks sal Roe ereev mange efoto: soloneasetbeme Rainer feefentémamcrehs ‘ammison shit suet math teeant ee versie Spates sve ra ately ‘hinge yon abiesPricing Mechanisms : Fad Mona Prag Predeine prices re ated on sate variables grief rindi oda ‘ates Pie ed nthe arb uy | Ayo ae Pog ete etna redpet ota pean iis “Apoloe atone Segment Z ‘etmedipmint Fan hinctional he ent pce ‘rice change based on marks condions Negitin Psenemtatadteaen tn ooncetns lini) dendey oration soe anr natn ss elimenspmar Pie dpon cinta ane l pucs (ora zd ihe sos he et Insinemsrhet menses iy eon Assns pretend atc competi 66gKey Resources ‘The Key Resources Building Block describes the most important assets required to make a business model work very busines moda requires Key Resources, These resources allow an enterprise to create abd fer Vale Propsion, rch markets, maintaisreltonsipe with Customer Segments and tan revenues Diferent Key Resources ar needed depending on the ype of busiest del Amro manafatuer eu ‘apta-ntensveprocton lie, whereas microchip designer focises mare on human revues “Key esoureescan be pss, nancial intellect or human. Key esourescan be owned or lasedby the company a acquired ‘somkey partnersKey Activities ‘The Key Activities Building Block describes ‘the most important things acompany must do ‘to make its business model work.What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?WE] Key Partnerships ‘The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work comps fore parinership for many reasons, and parnehips trebecomingscoraertone of many basiness models Companies ‘eae allanoes to optimize their business models reduce risk, or ‘ie cn distinguish beoween four diferent pes of partnerships 1, Strate allancer tween norcompetars 2. Goopton rae partes Beween competitors 1 doin verre to develop ne uses 4 Bagersuppier relationships o azure rable ppleWho are our Key Partners? Who are our key suppliers? -— Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? none ash ren eee byamenctie os adegeaname chen tin fr ening ‘prec nti anders “eagoup coments gray edgy > pin nea aae ron yeu menbancongtatg Thenaatectemdisirestoartineragplar throm Si rade tes stoop neten ‘eresandcinvies gal acryanyts Aoife neoucr anda a acer RT cS Sa Feces STIS Sumtcnanscomny ols petreipi re mescives nee ei baa ale stmt cite fae ener on cmt scm crandancartanty mttdy redo eureka a Femodoscotareaceimscinettie en tsi Amon ranches tnsormantdacwwedyireaiy Raset Srey angen sen sna trconettof stateful te 38 inewineneconoingnanar tay fr serra chee eee be sarge lemop dct demoed alist ban ven om isI Cost Structure ‘The Cost Structure describes al costs incurred to operate a business mot ngblock desrtes the most important cos incurredWhat are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?