BUSINESS MODELS «CANVAS»

What is Business Model?

**A business model describes the rationale of how an organization creates, delivers and captures value.**

«This concept can become a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives. «

CUSTOMER SEGMENTS

Which classes are you creating values for?

Who is your most important customer?

For example: Mass Market: There is no specific segmentation for a

company that follows the Mass Market element as the organization displays a wide view of potential clients.

Niche Market: Customer segmentation based on specialized needs and characteristics of its clients.

Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.

Diversify: A business serves multiple customer segments with different needs and characteristics.

Multi-Sided Platform / Market: For a smooth day to day business operation, some companies will serve mutually dependent customer segment.

VALUE PROPOSITIONS

It seeks to solve customers’ problems and satisfy customer needs with value propositions.

What core value do you deliver to the customer?

Which customer needs are you satisfying?

The value propositions may be: Quantitative- price and efficiency Qualitative- overall customer experience and

outcome

CHANNELS

Value propositions are delivered to customer through communication, distribution, and sales Channels.

Through which channels that your customers want to be reached?

Which channels work best?

How much do they cost? How can they be integrated into your and your customers’ routines?

CUSTOMER RELATIONSHIPS

Customer relationships are established and maintained with each Customer Segment.

What relationship that the target customer expects you to establish?

How can you integrate that into your business in terms of cost and format?

Personal Assistance: Assistance in a form of employee-customer interaction.

Dedicated Personal Assistance: The most intimate and hands on personal assistance where a sales representative is assigned to handle all the needs and questions of a special set of clients.

Self Service: The type of relationship that translates from the indirect interaction between the company and the clients.

Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and his/her preferences.

Communities: Creating a community allows for a direct interaction among different clients and the company.

REVENUE STREAMS

Revenue streams result from value propositions successfully offered to customers.

For what value are your customers willing to pay?

What and how do they recently pay? How would they prefer to pay?

How much does every revenue stream contribute to the overall revenues?

Asset Sale - (the most common type) Selling ownership rights to a physical good.

Usage Fee - Money generated from the use of a particular service .

Lending/Leasing/Renting - Giving exclusive right to an asset for a particular period of time.

Licensing - Revenue generated from charging for the use of a protected intellectual property.

Advertising - Revenue generated from charging fees for product advertising.

KEY RESOURCES

Key resources are the assets required to offer and deliver the previously described elements .

What key resources does your value proposition require?

What resources are important the most in distribution channels, customer relationships, revenue stream…?

KEY ACTIVITIES

What key activities does your value proposition require?

What activities are important the most in distribution channels, customer relationships, revenue stream…?

KEY PARTNERSHIPS

Who are your key partners/suppliers?

What are the motivations for the partnerships?

COST STRUCTURE

What are the most important costs inherent in our business model?

What are the most cost in your business?

Which key resources/ activities are most expensive?

For example : Cost-Driven - This business model focuses on

minimizing all costs and having no frills. Value-Driven - Less concerned with cost, this business

model focuses on creating value for their products and services.