Business model template - overview
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The Business Model Canvas was initially proposed by Alexander Osterwalder based on his earlier work on Business Model Ontology.
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Business model template - overview
- 2. Business Model Canvas • Osterwalder's work propose a single reference model, called business model canvas based on the similarities of a wide range of business model conceptualizations. It is a popular used frameworks for describing the elements of business models. • With this business model design template, an enterprise can easily describe their business model. Aspects of the template are Infrastructure, Offering, Customers, Finances, etc • See Utube video for overview. • https://www.youtube.com/watch?v=QoAOzMTLP5s
- 3. INFRASTRUCTURE CUSTOMEROFFER PROFIT EQUATION [Osterwalder (2004) The Business Model Ontology] Business Model Framework Create Value Capture Value Four Areas Value Proposition Deliver Value
- 4. VALUE PROPOSITION CUSTOMER SEGMENTS INFRASTRUCTURE CUSTOMEROFFER PROFIT EQUATION CHANNELS [Osterwalder (2004) The Business Model Ontology] Business Model Framework Nine Building Blocks CUSTOMER RELATIONSHIPS REVENUE STREAMS KEY RESOURCES KEY ACTIVITIES KEY PARTNERS COST STRUCTURE
- 5. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Business Model Canvas
- 6. Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams What segment(s) are we targeting? What are the customer needs? What products and services will we offer? What value do they deliver to the customer? Through which channels do customers want to be reached? Which is most cost- efficient? What type of relationship does the customer want? What relationship do we want? How will we make money? (product sale? usage fees?....) What is our pricing model? What key activities are required by our - value propositions? - channels? - revenue streams? Who are our key partners? Our key suppliers? Which key activities do partners perform? What are the most important costs inherent in our business model? Which key resources / key activities are most expensive? What resources are required to support those key activities? Business Model Canvas
- 7. You are welcome to contact Nigel Bairstow at B2B Whiteboard, your source of B2B Asia / Pacific marketing advice http://www.linkedin.com/pub/nigel-bairstow/6/41b/726 Visit and join: www.b2bwhiteboard.com http://twitter.com/#!/b2bwhiteboard
Editor's Notes
- Another way to look at this model is in the context of value.. INFRASTRUCTURE – how we create value. The second is the OFFER. It could be a product, and it could be a service – or both. CUSTOMER section is where we deliver value. The PROFIT EQUATION is where we capture that value. Within these four areas are nine building blocks that describe the logic of how a company intends to make money.
- Finally, there are costs associated with creating and delivering value. Some business models are cost-centrics; others less so. Business models in Tiers B and C are likely to be based on a low cost structure. TRANSITION Here’s a great example of how a company developed a low-cost business model to succeed in a new tier.