Business Model Generation
Transcript: serve two or more interdependent Customer Segments. A credit card company. Renting Multi-sided markets Price CH Channels These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues. Physical (buildings,machines,systems,...). Intellectual (Knowledge,Brands,database,..). Human. Financial (cash,lines of credit,stock option pool). Mohamed Hanafy Mahmoud 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? Thanks for your time =) Subscription fees Channel Phases Segmented Brand/status Accessibility Helping customers reduce costs. Salesforce.com (CRM application). Advertising How a company communicates with and reaches its Customer Segments to deliver a Value Proposition. Convenience/usability KR Key Resources For a used car buyer, a one-year service guarantee reduces the risk of post-purchase breakdowns and repairs. VP Value Propositions Business models focused on mass markets don’t distinguish between different Customer Segments. This type is often found in the consumer electronics sector. Licensing Asset sale partnerships are becoming a cornerstone of many business models. Companies create alliances to optimize their business models, reduce risk, or acquire resources. Optimization and economy of scale (reduce costs, and often involve outsourcing or sharing infrastructure). Reduction of risk and uncertainty (Blu-ray technology). Acquisition of particular resources and activities (A mobile phone manufacturer, for example, may license an operating system for its handsets rather than developing one in-house). A business model describes the rationale of how an organization creates, delivers, and captures value. The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings) This approach allows for customized products and services, while still taking advantage of economies of scale. use of a particular service. Hotel , A package delivery service. Diversified No similar offering. This is often, but not always, technology related. Mobile telecommunication (cell phones). taking a percentage of the value of each sales (commissions). Real estate agents. C$ Cost Structure Newness Niche market Offering similar value at a lower price. Free offers. show that they are “in.” Customers may find value in the simple act of using and displaying a specific brand. R$ Revenue Streams A product may stand out because of superior design. Fashion and electronics industries. Temporarily granting someone the exclusive right to use a particular asset for a fixed period in return for a fee. Giving customers permission to use protected intellectual property in exchange for licensing fees. technology sectors. fees for advertising a particular product, service, or brand. selling ownership rights. Fiat sells automobiles, which buyers are free to drive, resell, or even destroy. It solves a customer problem or satisfies a customer need. KA Key Activities Usage fee "Getting the job done" Improving product or service performance. PC sector. CS Customer Segments Design Business Model Generation slightly different needs and problems. The retail arm of a bank. Micro mechanical systems. Making products and services available to customers who previously lacked access to them. NetJets. Performance often found in supplier-buyer relationships. many car part manufacturers depend heavily on purchases from major automobile manufacturers. selling continuous access to a service. Gym. the airlines pay Rolls-Royce a fee for every hour an engine runs Cost reduction Personal assistance (site,call centers and emails). Dedicated personal assistance (private banking service). Self-service (no direct relationship). Automated services (personal online profiles give customers access to customized services). Communities (more involved with customers). Co-creation (Amazon.com invites customers to write reviews and thus create value for other book lovers). Risk reduction easier to use. Apple (iPod & iTunes) Customization The Cost Structure describes all costs incurred to operate a business model ,many business models fall in between these two extremes: Cost-driven Value-driven KP Key Partnerships These are the most important actions a company must take to operate successfully.Key Activities differ depending on business model type. Production (the business models of manufacturing firms). Problem solving (business models call for activities such as knowledge management and continuous training). Platform/network (relate to platform management, service provisioning,
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