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Business Model
generation
Business Model is how to
create economical value
out of your idea
Are you creating value
Design a
process to
oversee
the value

Selected
features

Confirm
the
revenue
streams

Identify
the
market
segment
What is
the
benefit
The business model canvas
Customer Segment
 Mass market
 Niche market
 Segmented
 Diversified
 Multi-Sided platform
Value proposition
 Newness
 Performance
 Customization

 Getting the job done
 Design
 Price
 Cost reduction

 Risk reduction
 Accessibility
 Usability
Channels
 Direct Vs. Indirect channels
 Channel phase
 Awareness

 Evaluation
 Purchase
 Delivery
 After sale
Customer relationships
 Personal assistance
 Dedicated personal assistance
 Self-service
 Automated service
 Communities
 Co-creation
Revenue streams
 Assets sale
 Usage fees
 Subscription fees
 Lending/Renting/Leasing
 Licensing
 Brokerage fees
 Advertising
Pricing mechanisms
 Fixed menu pricing
 List price
 Product features dependent

 Customer segment
 Value dependent

 Dynamic pricing
 Negotiation

 Yield management
 Real-time market
 Auctions
Key Resources
 Physical
 Intellectual
 Human
 Financial
Key activities
 Production
 Problem solving
 Platform/network
Key partnerships
 Optimization and economy of scale
 Reduction of risk and uncertainty
 Acquisition of particular resources
Cost structure
 Cost-driven
 Value-driven
 Fixed costs
 Variable costs
Innovation in Business
Model
Hardware

Software

1990

Finance

Services

Hardware

Software

Finance

Services

General Motors Business Model
2004
Importation questions for the Business
Model
1. How are we solving the problem or meeting the need?
2. What are the customers willing to pay to solve this problem
3. How large is my market
4. Do we have a competitive offering?
5. What is the status of the market/technology
6. How should I presented the product and its image
7. How much it will cost me to get my solution ready for the market

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Business Model Generation - Obi