Business Model Canvas
We predominately use the Business Model Canvas as originally initially proposed by Alexander Osterwalder based on his earlier work on Business Model Ontology.
We predominately use the Business Model Canvas as originally initially proposed by Alexander Osterwalder based on his earlier work on Business Model Ontology.
business_model_canvas_template_05-01-14.xlsx | |
File Size: | 11 kb |
File Type: | xlsx |
Osterwalder's work and thesis propose a single reference model based on the similarities of a wide range of business model conceptualisations. With his business model design template, an enterprise can easily describe their business model.
Key Activities
Key Activities
- The most important activities in executing a company's value proposition.
- The resources that are necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual.
- In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures, strategic alliances between competitors or non-competitors.
- The collection of products and services a business offers to meet the needs of its customers. According to Osterwalder, (2004), a company's value proposition is what distinguishes itself from its competitors. The value proposition provides value through various elements such as newness, performance, customization, "getting the job done", design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability.
- The value propositions may be, Quantitative- price and efficiency or Qualitative- overall customer experience and outcome
- Customer Segments: To build an effective business model, a company must identify which customers it tries to serve. Various set of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients
- A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective. An organization can reach its clients either through its own channels (store front), partner channels (major distributors), or a combination of both.
- To ensure the survival and success of any businesses, companies must identify the type of relationship they want to create with their customer segments.
- Cost Structure: This describes the most important monetary consequences while operating under different business models.
- Characteristics of Cost Structures, Fixed Costs, Variable Costs, Economies of Scale, Economies of Scope
- The way a company makes income from each customer segment. Several ways to generate a revenue stream:
- Usage Fee - Money generated from the use of a particular service
- Subscription Fees - Revenue generated by selling a continuous service. i.e. Netflix
- Lending/Leasing/Renting - Giving exclusive right to an asset for a particular period of time. i.e. Leasing a Car
- Licensing - Revenue generated from charging for the use of a protected intellectual property.