Dr. Paraskeyi Gkiourka�pgiourka@gmail.com
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The Business Model and the Business Model Canvas
THE
Canvas
Based on
First Plain Paper Photocopier - 1950
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Lease
$25/month
+
4¢/copy (min of $49/month)
TOO EXPENSIVE!
to sell to customers!
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business model
Business Model
=
an engine for creating,
delivering, and capturing value
by solving a problem
or addressing a need
Μηχανισμός δημιουργίας, παράδοσης και αποκόμισης της αξίας λύνοντας ένα πρόβλημα ή αντιμετωπίζοντας μια ανάγκη
BUSINESS MODEL
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Customers
Organization
Προϊόν / Υπηρεσία
Revenue ($)
Create
Deliver
Capture
Business Model
business model canvas
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You Can
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Building Blocks
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Business Model Canvas
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Non-Profit, Not-for-Profit, ”B” / Social Benefit, Social Purpose, For-Profit
Capture
Deliver
Create
Business Model Canvas:
A toolbox�for planning your enterprise,
and the Value�produced
Customer Segments
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which customers and users are you serving? which jobs do they really want to get done?
Value Proposition
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what are you offering them? what is that getting done for them? do they care?
WHAT?
WHY?
DESIGN
OBSERVE
Test - Measure - Learn
Product – Market Fit!!!
The Value Proposition Map
Channels
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how does each customer segment want to be reached? through which interaction points?
Customer Relationships
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what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
Revenue Streams
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what are customers really willing to pay for? how?
are you generating transactional or recurring revenues?
Key Resources
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which resources underpin your business model? which assets are essential?
Key Activities
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which activities do you need to perform well in your business model? what is crucial?
Key Partners
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which partners and suppliers leverage your model? who do you need to rely on?
Cost Structure
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what is the resulting cost structure? which key elements drive your costs?
Business Model Canvas
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Your Business Model Canvas
KEY PARTNERS | KEY ACTIVITIES | VALUE PROPOSITION | RELATIONSHIPS | CUSTOMER SEGMENT | |
KEY RESOURCES | |||||
CHANNELS | |||||
COST STRUCTURE | REVENUE STREAMS 20 | ||||
What’s wrong with my canvas?
The Business Model Canvas is solution-driven (value proposition) rather than market pain-centric. It assumes that the stated Value Proposition IS the desired solution resolving the pain of the stated targeted customer.
But what if the solution built around it is wrong?
Wrong start – wrong end
What’s wrong with my canvas?
Founders can identify the problem and opportunity but end up planning too big for Minimum Viable Product (MVP) standards
Is your canvas trying to depict an intergalactic implementation?
Solving Bigger Problems
What’s wrong with my canvas?
The canvas design omits the
Measure – Learn – Elimination
aspect. It Is more a snapshot type of a tool
What if you fail on accounting for… fails?
Learning from Mistakes? Nope
What’s wrong with my canvas?
Most of the times startup teams/companies fail to recognize the BMC process of analysing to determine needs in each category.
In that token they treat the canvas as a check list
Have you investing in adequate research and enough time + brainpower?
It’s not a shopping list
What’s wrong with my canvas?
It’s hard to have the right balance in the depicted info. It’s better though, to start with enough detail in the beginning and later refine by using less words
It’s always better to slash and burn what you don’t need instead of assuming a lot from the get-go.
Too simple vs too detailed
you need to validate your model assumptions with the customers until you get it right!
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How to validate?
There are three clever ways to validate these assumptions and to talk directly to customers:
Examples
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Example 1
Example 2
“For every product sold,
we help a person in need”
Refreshing lemonade to joggers at public parks
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TOMS
Kelly’s Lemonade Stand: Refreshing Lemonade
CHANNELS
VALUE RELATIONSHIPS PROPOSITION
CUSTOMER SEGMENT
REVENUE STREAMS
COST STRUCTURE
KEY PARTNERS
KEY RESOURCES
KEY ACTIVITIES
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Skype
KEY PARTNERS | KEY ACTIVITIES | VALUE PROPOSITION | RELATIONSHIPS | CUSTOMER SEGMENT | |
KEY RESOURCES | |||||
CHANNELS | |||||
COST STRUCTURE | REVENUE STREAMS 24 | ||||
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THANK YOU!
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