COLLEGE OF BUSINESS ADMINISTRATION

TOPICS FOR DISCUSSION

•Data vs. decisions

•The Business Model
•The Nine (9) Building Blocks
•The Business Model Canvas

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WHICH QUESTION COMES FIRST?

•What data are available in our

organization?

•What decisions do we need to

make in our organization?

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 CORRECT!

•We need to identify the decisions

that we need to make then identify
the data that we will need to make
these decisions.

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 Objectives
On a specified time, you will have to present:

• A one-page view of your business model;

• A profile of your customer and what value you
offer;
• Opportunities for possible enhancement of
your business; and
• Actions you will take to continue enhancing
your business model.
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What is a Business Model?

A business model describes

the rationale of how an
organization creates, delivers
and captures value
 The Building Blocks

Customer Value
Channels
Segments Propositions

Customer Revenue Key

Relationships Streams Resources

Key Cost
Key Activities
Partnerships Structure

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 Customer Segments

Different groups of people or organizations

an enterprise aims to reach and serve

Customer
Questions
Segments
*For whom are we *Mass market
creating value?
*Niche market
*Who are our most *Segmented
important customers?
*Diversified
*Multi-sided

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 Value Propositions
 It seeks to solve customer problems and satisfy customer needs with
value propositions
 The bundle of products and services that create value for a
specific Customer Segment
Questions Elements to
* What value do we Adding Value
deliver to the customer? * Newness
* Which one of our * Performance
customer’s problems
are we helping to * Customization
solve? * Getting the job
* Which customer needs done
are we satisfying? * Design
* What bundles of * Brand/Status
products and services
are we offering to each * Price
Customer Segment? * Accessibility
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 Channels
How a company communicates with and reaches
its Customer Segments to deliver a
Value Proposition
Questions
Channel Phases
* Through which channels do
our Customer Segments 1. Awareness
want to be reached? 2. Evaluation
* How are we reaching them 3. Purchase
now? 4. Delivery
* Which ones work best? 5. After sales
* Which ones are the most Channel Types
efficient?
1. Own or Partner
* How are we integrating them
with customer routines? 2. Direct or Indirect

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 Customer Relationships
The types of relationships a company establishes
with specific Customer Segments

Questions Categories of
*What type of relationship does Relationships
each of our Customer Segments *Personal assistance
expect us to establish and
maintain with them?
*Dedicated personal
assistance
*Which ones have we
established?
*Self-service
*How costly are they? *Automated services
*How are they integrated with *Communities
the rest of our business model? *Co-creation

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 Revenue Streams
The cash a company generates from each
Customer Segment (one-time or recurring)

Questions Generating Revenue

* For what value are our *Asset sale
customers really willing to pay?
*Usage fee
* For what do they currently pay?
* How are they currently paying? *Subscription fees
* How would they prefer to pay? *Lending/Renting/Leasing
* How much does each Revenue *Licensing
Stream contribute to overall *Brokerage
revenues?
*Advertising

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 Key Resources
The most important assets required to make a
business model work

Questions
*For what value are our Categories
What Key Resources *Physical
do our Value
Propositions require? *Intellectual
*What do our Channels *Human
require?
*Financial
*Our Customer
Relationships?
*Our Revenue Streams?
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 Key Activities
The most important things a company must
do to make its business model work

Questions
Categories
*What Key Activities
do our Value *Production
Propositions require? *Problem solving
*Our Channels? *Platform/Network
*Customer
Relationships?
*Revenue Streams?

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 Key Partnerships
The network of suppliers and partners that
make the business model work
Questions Types of Partnerships
*Who are our Key
Partners? *Strategic alliances
*Who are our key between non-
suppliers? competitors
*Which Key Resources *Competition
are we acquiring from
partners? *Joint ventures
*Which Key Activities do *Buyer-supplier
partners perform?

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 Cost Structure
All costs incurred to operate a
business model
Questions Classes of
*What are the most Structure
important costs *Cost-driven
inherent in our *Value-driven
business model?
*Which Key Resources
are most expensive?
*Which Key Activities
are most expensive?
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2015 University of Batangas
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 THE BUSINESS MODEL CANVAS

The business model canvas was

initially proposed by Alexander
Osterwalder based on his early
work on Business Model
Ontology.

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2015 University of Batangas
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