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Business Model Canvas
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Learning Objectives
Understand the
key concepts of
business model
thinking.
Acquire
knowledge of the
9 building blocks
of the Business
Model Canvas for
value creation.
Learn how to
apply the
Business Model
Canvas to map
out your current
business model
for understanding
and analysis.
Gain basic
knowledge of the
Business Model
design process
and related
frameworks.
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Business Model Canvas
A shared language for describing,
visualizing, assessing, and changing
business models
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Definition of Business Model
“A business model describes the
rationale of how an organization
creates, delivers, and captures
value.”
Source: Strategyzer
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A tool to create and analyze
business models
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The Business Model Canvas is a Strategic Management
framework for developing business models
Key
Partners
Key
Activities
Value
Proposition
Customer
Segments
Key
Resources
Cost Structure Revenue Streams
Customer
Relationships
Channels
Source: Strategyzer
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Applications of the Business Model Canvas
1. Strategizing
2. Dashboard
3. Understanding competition
4. Portfolio of business models
5. Innovation
6. New idea template
7. Understanding customers
8. Organizational alignment
9. Strategy diffusion and co-
creation
10. Shared language across
functions
11. Aligning value side (revenue)
and infrastructure side (costs)
12. Investing
13. Mergers and acquisitions
14. Exit strategies
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The 9 Building Blocks
1
Customer
Segments
An organization
serves one or
several Customer
Segments.
2 3
Value
Propositions
It seeks to solve
customer problems
and satisfy
customer needs
with value
propositions.
Channels
Value propositions
are delivered to
customers through
communication,
distribution and and
sales Channels.
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1. Customer Segments
The Customer Segments Building Block defines the different
groups of people or organizations an enterprise aims to reach and
serve
Key Questions:
 For whom are we creating value?
 Who are our most important customers?
Key Points:
 A company may group customers into
distinct segments with common needs,
common behaviors or other attributes
 A business model may define one or
several large or small Customer Segments
 Types of Customer Segments:
• Mass market (e.g. car)
• Niche market (e.g. Rolex)
• Segmented (e.g. consumer vs. commercial)
• Diversified (e.g. retail sales vs. cloud services)
• Multi-sided markets (e.g. credit card company –
credit card holders and merchants who accept those
credit cards)
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4. Customer Relationships
The Customer Relationships Building Block describes the types of
relationships a company establishes with specific Customer
Segments
Key Questions:
 What type of relationships does each of
our Customer Segment expect us to
establish and maintain with them?
 Which ones have we established?
 How are they integrated with the rest of
our business model?
 How costly are they?
Key Points:
 Customer Relationships may be driven by
the following motivations:
• Customer acquisition
• Customer retention
• Boosting sales (upselling)
 Categories of Customer Relationships:
• Personal assistance
• Dedicated personal assistance
• Self-service
• Automated services
• Communities
• Co-creation
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7. Key Activities
The Key Activities Building Block describes the most important
things a company must do to make its business model work
Key Questions:
 What Key Activities do our Value
Propositions require?
 Our Distribution Channels?
 Customer Relationships?
 Revenue Streams?
Key Points:
 Kay Activities are the most important
actions a company must take to operate
successfully
 Key Activities can be categorized as:
• Production
• Problem solving
• Platform/Network
 Key Activities differ depending on
business model type. For software maker
Microsoft, Key Activities include software
development; for consultancy McKinsey,
Key Activities include problem solving
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34
The Business Model Canvas
3
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Left Brain vs. Right Brain
LEFT BRAIN
logic
RIGHT BRAIN
emotion
Source: Strategyzer
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Starbucks Business Model
KP KA VP C
R
CS
KR CH
C$ R$
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Uber Business Model
KP KA VP CR CS
KR CH
C$ R$
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Apple iPod/iTunes Business Model
KP KA VP C
R
CS
KR CH
C$ R$
Source: Strategyzer
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Amazon.com Business Model
Source: Adapted from Strategyzer
KP KA VP CR CS
KR CH
C$ R$
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Facebook Business Model:
KP KA VP C
R
CS
KR CH
C$ R$
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Private Banking Business Model:
3 Businesses in One
KP KA VP C
R
CS
KR CH
C$ R$
Source: Adapted from Strategyzer
Relationship
Business
Product Innovation
Business
Infrastructure
Business
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Workshop
1. Assemble in teams
2. Create canvas
3. Write key words on sticky notes
4. Place sticky notes on the canvas
5. Present your canvas
30 mins
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Discussion
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64
Business Model Design Process
4
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Objectives of Business Model Innovation
1. To satisfy an existing but unanswered market needs
2. To bring new technologies, products, or services to
market
3. To improve, disrupt, or transform and existing market
with a better business model
4. To create an entirely new market
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Factors Specific to Established Organizations
Factor Description Examples
Reactive Arising out of a crisis with the
existing business model
IBM in the 1990s, Nintendo
Wii, Rolls Royce jet engines
Adaptive Adjusting, improving, or
defending the existing business
model
Nokia “comes with music”,
P&G open innovation, Hilti
Expansive Launching a new technology,
product, or service
Nespresso, Xerox 914 in
the 1960s, iPod/iTunes
Pro-active/explorative Preparing for the future Car2go by Daimler, Amazon
Web Services
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5 Phases of Business Model Design
Mobilize Understand Design Implement Manage
Objective
Prepare for a
successful business
model design
project
Research and
analyze elements
needed for the
business model
design project
Generate and test
viable business
model options, and
select the best
Implement the
business model
prototype in the field
Adapt and modify
the business model
in response to
market reaction
Focus
Setting the stage Immersion Inquiry Execution Evolution
Activities
 Frame project
objectives
 Test preliminary
business ideas
 Plan
 Assemble team
 Scan environment
 Study potential
customers
 Interview experts
 Research what has
already been tried
(e.g. examples of
failures and their
causes)
 Collect ideas and
opinions
 Brainstorm
 Prototype
 Test
 Select
 Communicate and
involve
 Execute
 Scan the
environment
 Continuously
assess your
business model
 Rejuvenate or
rethink your model
 Align business
models throughout
the enterprise
 Manage synergies
or conflicts
between models
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76
Basics of Design Thinking
5
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Traditional vs. Design Thinking
Flawless planning Enlightened trail & error
Avoid failure Fail fast
Rigorous analysis Rigorous testing
Presentations Lightweight experiments
Arm’s length customer research Deep customer immersion
Traditional Thinking Design ThinkingVS
Periodic Continuous
Thinking Doing
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Three Lenses of Human-Centered Design
What can be financially viable?
Desirability
Viability
Feasibility What is technically and
organizationally feasible?
What do people desire?
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Industrial Applications of Design Thinking
Launched the mobile
payments app (alternative to
the SB card).
Store lines move 10-20%
faster
Retail stores designed
around activities, not
products.
Most profitable retail store
per square foot
Changed product-based
model to a cloud-based
subscription model.
Creative Cloud software
revenue increased by 44%
since 2013
Launched Tide PODS so
customers don’t have to
measure.
Estimated earning of $131
million in 2012
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5 Thinking Mindsets
 All 5 mindsets are required for the whole design process
to run
 The 5 mindsets of design thinking are:
– Think Users First
– Ask Questions
– Believe You can Draw
– Commit to Explore
– Prototype to Test
 Without the proper mindsets, the action plan is just a
theory
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72%
of new product and
service innovations
fail to deliver on
expectations
Source: Simon-Kucher & Partners, 2014
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Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
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Value Proposition Canvas
Pain Relievers
Gain Creators
Products
& services
Gains
Pains
Jobs
Value Map Customer Profile
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Fit is achieved when your value proposition alleviate extreme
pains and create essential gains that customers care about
Value Map Customer Profile
FIT
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Presenting the Business Model Canvas – Don’ts
1. Commit cognitive murder – showing the entire canvas all at once
2. Too much granularity and detail
3. Too many ideas in one canvas
4. “Filling out” each box one after another like a checklist
5. Orphan elements – elements that have no connection to other
elements (e.g. a revenue stream without a customer who is paying
for a value proposition)
6. Mixing present and future state
7. Gives in to the urge to blah blah blah
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Other Presentations You May Like…
Check out our presentations catalog at https://www.oeconsulting.com.sg/training-presentations
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The Business Model Canvas is a visual tool for generating new
business models and ideas for and new ways of doing business
Business Model Canvas
Customers
Customer
Relationships
Key
Activities
Key
Partners
Costs
Key
Resources Channels Revenue
Value
Proposition
Source: Strategyzer
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The Business Model Canvas consists of 9 generic building blocks
for developing new or documenting existing business models
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
 What are our Key Partners?
 Who are our Key Suppliers?
 Which Key Resources are we
acquiring from partners?
 Which Key Activities do
partners perform?
 What Key Activities do our
Value Propositions require?
 Our Distribution Channels?
 Customer Relationships?
 Revenue Streams?
 What do we deliver to the
customer?
 Which one of our customer’s
problems are we helping to
solve?
 What bundles of products and
services are we offering to
each Customer Segment?
 Which customer needs are we
satisfying?
 What type of relationships
does each of our Customer
Segment expect us to
establish and maintain with
them?
 Which ones have we
established?
 How are they integrated with
the rest of our business
model?
 How costly are they?
 For whom are we creating
value?
 Who are our most important
customers?
 What Key Resources do our
Value Propositions require?
 Our Distribution Channels?
 Customer Relationships?
 Revenue Streams?
 Through which Channels do
our Customer Segments want
to be reached?
 How are we reaching them
now?
 How are our Channels
integrated?
 Which ones worked best?
 Which ones are most cost-
efficient?
 How are we integrating them
with customer routines?
 What are the most important costs inherent in our business model?
 Which Key Resources are most expensive?
 Which Key Activities are most expensive?
 For what value are our customers really willing to pay?
 For what do they currently pay?
 How are they currently paying?
 How would they prefer to pay?
 How much does each Revenue Stream contribute to overall revenues?
Source: Strategyzer
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Business Model Canvas
Key
Partners
Key
Activities
Value
Proposition
Customer
Segments
Key
Resources
Cost Structure Revenue Streams
Customer
Relationships
Channels
Source: Strategyzer
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Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
Source: Strategyzer
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Business Model Canvas
KP KA VP CR CS
KR CH
C$ R$
Source: Strategyzer
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Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
Source: Strategyzer
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Value (Proposition) Map Template
Insert bumper – takeaway statement
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5 Phases of Business Model Design
Mobilize Understand Design Implement Manage
Objective
Prepare for a
successful business
model design
project
Research and
analyze elements
needed for the
business model
design project
Generate and test
viable business
model options, and
select the best
Implement the
business model
prototype in the field
Adapt and modify
the business model
in response to
market reaction
Focus
Setting the stage Immersion Inquiry Execution Evolution
Description
Assemble all the
elements for
successful business
model design. Create
awareness of the
need for a new
business model,
describe the
motivation behind the
project, and establish
a common language
to describe, design,
and analyze and
discuss business
models.
You and the business
model design team
immerse yourselves in
relevant knowledge:
customers, technology,
and environment. You
collect information,
interview experts,
study potential
customers, and identify
needs and problems.
Transform the
information and ideas
from the previous
phase into business
model prototypes that
can be explored and
tested. After an
intensive business
model inquiry, select
the most satisfactory
business model
design.
Implement the selected
business model design.
Set up the
management
structures to
continuously monitor,
evaluate, and adapt
or transform your
business model.
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Create a Canvas of your Function Project
Business Model Canvas (TEMPLATE)
KP KA VP CR CS
KR CH
C$ R$
Source: Strategyzer
Group Workshop:
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Business Model Canvas (BMC)

  • 1. © Operational Excellence Consulting. All rights reserved. Business Model Canvas
  • 2. © Operational Excellence Consulting. All rights reserved. 4© Operational Excellence Consulting. All rights reserved. 4 Learning Objectives Understand the key concepts of business model thinking. Acquire knowledge of the 9 building blocks of the Business Model Canvas for value creation. Learn how to apply the Business Model Canvas to map out your current business model for understanding and analysis. Gain basic knowledge of the Business Model design process and related frameworks. This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 3. © Operational Excellence Consulting. All rights reserved. 7 Business Model Canvas A shared language for describing, visualizing, assessing, and changing business models This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 4. © Operational Excellence Consulting. All rights reserved. 10© Operational Excellence Consulting. All rights reserved. 10 Definition of Business Model “A business model describes the rationale of how an organization creates, delivers, and captures value.” Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 5. © Operational Excellence Consulting. All rights reserved. 13© Operational Excellence Consulting. All rights reserved. 13 A tool to create and analyze business models This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 6. © Operational Excellence Consulting. All rights reserved. 16 The Business Model Canvas is a Strategic Management framework for developing business models Key Partners Key Activities Value Proposition Customer Segments Key Resources Cost Structure Revenue Streams Customer Relationships Channels Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 7. © Operational Excellence Consulting. All rights reserved. 19 Applications of the Business Model Canvas 1. Strategizing 2. Dashboard 3. Understanding competition 4. Portfolio of business models 5. Innovation 6. New idea template 7. Understanding customers 8. Organizational alignment 9. Strategy diffusion and co- creation 10. Shared language across functions 11. Aligning value side (revenue) and infrastructure side (costs) 12. Investing 13. Mergers and acquisitions 14. Exit strategies This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 8. © Operational Excellence Consulting. All rights reserved. 22 The 9 Building Blocks 1 Customer Segments An organization serves one or several Customer Segments. 2 3 Value Propositions It seeks to solve customer problems and satisfy customer needs with value propositions. Channels Value propositions are delivered to customers through communication, distribution and and sales Channels. This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 9. © Operational Excellence Consulting. All rights reserved. 25 1. Customer Segments The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve Key Questions:  For whom are we creating value?  Who are our most important customers? Key Points:  A company may group customers into distinct segments with common needs, common behaviors or other attributes  A business model may define one or several large or small Customer Segments  Types of Customer Segments: • Mass market (e.g. car) • Niche market (e.g. Rolex) • Segmented (e.g. consumer vs. commercial) • Diversified (e.g. retail sales vs. cloud services) • Multi-sided markets (e.g. credit card company – credit card holders and merchants who accept those credit cards) This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 10. © Operational Excellence Consulting. All rights reserved. 28 4. Customer Relationships The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments Key Questions:  What type of relationships does each of our Customer Segment expect us to establish and maintain with them?  Which ones have we established?  How are they integrated with the rest of our business model?  How costly are they? Key Points:  Customer Relationships may be driven by the following motivations: • Customer acquisition • Customer retention • Boosting sales (upselling)  Categories of Customer Relationships: • Personal assistance • Dedicated personal assistance • Self-service • Automated services • Communities • Co-creation This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 11. © Operational Excellence Consulting. All rights reserved. 31 7. Key Activities The Key Activities Building Block describes the most important things a company must do to make its business model work Key Questions:  What Key Activities do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams? Key Points:  Kay Activities are the most important actions a company must take to operate successfully  Key Activities can be categorized as: • Production • Problem solving • Platform/Network  Key Activities differ depending on business model type. For software maker Microsoft, Key Activities include software development; for consultancy McKinsey, Key Activities include problem solving This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 12. © Operational Excellence Consulting. All rights reserved. 34 The Business Model Canvas 3 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 13. © Operational Excellence Consulting. All rights reserved. 37© Operational Excellence Consulting. All rights reserved. 37 Left Brain vs. Right Brain LEFT BRAIN logic RIGHT BRAIN emotion Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 14. © Operational Excellence Consulting. All rights reserved. 40 Starbucks Business Model KP KA VP C R CS KR CH C$ R$ This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 15. © Operational Excellence Consulting. All rights reserved. 43 Uber Business Model KP KA VP CR CS KR CH C$ R$ This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 16. © Operational Excellence Consulting. All rights reserved. 46 Apple iPod/iTunes Business Model KP KA VP C R CS KR CH C$ R$ Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 17. © Operational Excellence Consulting. All rights reserved. 49 Amazon.com Business Model Source: Adapted from Strategyzer KP KA VP CR CS KR CH C$ R$ This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 18. © Operational Excellence Consulting. All rights reserved. 52 Facebook Business Model: KP KA VP C R CS KR CH C$ R$ This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 19. © Operational Excellence Consulting. All rights reserved. 55 Private Banking Business Model: 3 Businesses in One KP KA VP C R CS KR CH C$ R$ Source: Adapted from Strategyzer Relationship Business Product Innovation Business Infrastructure Business This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 20. © Operational Excellence Consulting. All rights reserved. 58© Operational Excellence Consulting. All rights reserved. 58 Workshop 1. Assemble in teams 2. Create canvas 3. Write key words on sticky notes 4. Place sticky notes on the canvas 5. Present your canvas 30 mins This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 21. © Operational Excellence Consulting. All rights reserved. 61© Operational Excellence Consulting. All rights reserved. 61 Discussion This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 22. © Operational Excellence Consulting. All rights reserved. 64 Business Model Design Process 4 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 23. © Operational Excellence Consulting. All rights reserved. 67 Objectives of Business Model Innovation 1. To satisfy an existing but unanswered market needs 2. To bring new technologies, products, or services to market 3. To improve, disrupt, or transform and existing market with a better business model 4. To create an entirely new market This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 24. © Operational Excellence Consulting. All rights reserved. 70 Factors Specific to Established Organizations Factor Description Examples Reactive Arising out of a crisis with the existing business model IBM in the 1990s, Nintendo Wii, Rolls Royce jet engines Adaptive Adjusting, improving, or defending the existing business model Nokia “comes with music”, P&G open innovation, Hilti Expansive Launching a new technology, product, or service Nespresso, Xerox 914 in the 1960s, iPod/iTunes Pro-active/explorative Preparing for the future Car2go by Daimler, Amazon Web Services This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 25. © Operational Excellence Consulting. All rights reserved. 73© Operational Excellence Consulting. All rights reserved. 73 5 Phases of Business Model Design Mobilize Understand Design Implement Manage Objective Prepare for a successful business model design project Research and analyze elements needed for the business model design project Generate and test viable business model options, and select the best Implement the business model prototype in the field Adapt and modify the business model in response to market reaction Focus Setting the stage Immersion Inquiry Execution Evolution Activities  Frame project objectives  Test preliminary business ideas  Plan  Assemble team  Scan environment  Study potential customers  Interview experts  Research what has already been tried (e.g. examples of failures and their causes)  Collect ideas and opinions  Brainstorm  Prototype  Test  Select  Communicate and involve  Execute  Scan the environment  Continuously assess your business model  Rejuvenate or rethink your model  Align business models throughout the enterprise  Manage synergies or conflicts between models This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 26. © Operational Excellence Consulting. All rights reserved. 76 Basics of Design Thinking 5 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 27. © Operational Excellence Consulting. All rights reserved. 79 Traditional vs. Design Thinking Flawless planning Enlightened trail & error Avoid failure Fail fast Rigorous analysis Rigorous testing Presentations Lightweight experiments Arm’s length customer research Deep customer immersion Traditional Thinking Design ThinkingVS Periodic Continuous Thinking Doing This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 28. © Operational Excellence Consulting. All rights reserved. 82 Three Lenses of Human-Centered Design What can be financially viable? Desirability Viability Feasibility What is technically and organizationally feasible? What do people desire? This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 29. © Operational Excellence Consulting. All rights reserved. 85 Industrial Applications of Design Thinking Launched the mobile payments app (alternative to the SB card). Store lines move 10-20% faster Retail stores designed around activities, not products. Most profitable retail store per square foot Changed product-based model to a cloud-based subscription model. Creative Cloud software revenue increased by 44% since 2013 Launched Tide PODS so customers don’t have to measure. Estimated earning of $131 million in 2012 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 30. © Operational Excellence Consulting. All rights reserved. 88 5 Thinking Mindsets  All 5 mindsets are required for the whole design process to run  The 5 mindsets of design thinking are: – Think Users First – Ask Questions – Believe You can Draw – Commit to Explore – Prototype to Test  Without the proper mindsets, the action plan is just a theory This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 31. © Operational Excellence Consulting. All rights reserved. 91© Operational Excellence Consulting. All rights reserved. 91 72% of new product and service innovations fail to deliver on expectations Source: Simon-Kucher & Partners, 2014 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 32. © Operational Excellence Consulting. All rights reserved. 94 Business Model Canvas Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 33. © Operational Excellence Consulting. All rights reserved. 97© Operational Excellence Consulting. All rights reserved. 97 Value Proposition Canvas Pain Relievers Gain Creators Products & services Gains Pains Jobs Value Map Customer Profile This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 34. © Operational Excellence Consulting. All rights reserved. 100© Operational Excellence Consulting. All rights reserved. 100 Fit is achieved when your value proposition alleviate extreme pains and create essential gains that customers care about Value Map Customer Profile FIT This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 35. © Operational Excellence Consulting. All rights reserved. 103 Presenting the Business Model Canvas – Don’ts 1. Commit cognitive murder – showing the entire canvas all at once 2. Too much granularity and detail 3. Too many ideas in one canvas 4. “Filling out” each box one after another like a checklist 5. Orphan elements – elements that have no connection to other elements (e.g. a revenue stream without a customer who is paying for a value proposition) 6. Mixing present and future state 7. Gives in to the urge to blah blah blah This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 36. © Operational Excellence Consulting. All rights reserved. 106 Other Presentations You May Like… Check out our presentations catalog at https://www.oeconsulting.com.sg/training-presentations This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 37. © Operational Excellence Consulting. All rights reserved. 109 The Business Model Canvas is a visual tool for generating new business models and ideas for and new ways of doing business Business Model Canvas Customers Customer Relationships Key Activities Key Partners Costs Key Resources Channels Revenue Value Proposition Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 38. © Operational Excellence Consulting. All rights reserved. 112 The Business Model Canvas consists of 9 generic building blocks for developing new or documenting existing business models Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams  What are our Key Partners?  Who are our Key Suppliers?  Which Key Resources are we acquiring from partners?  Which Key Activities do partners perform?  What Key Activities do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams?  What do we deliver to the customer?  Which one of our customer’s problems are we helping to solve?  What bundles of products and services are we offering to each Customer Segment?  Which customer needs are we satisfying?  What type of relationships does each of our Customer Segment expect us to establish and maintain with them?  Which ones have we established?  How are they integrated with the rest of our business model?  How costly are they?  For whom are we creating value?  Who are our most important customers?  What Key Resources do our Value Propositions require?  Our Distribution Channels?  Customer Relationships?  Revenue Streams?  Through which Channels do our Customer Segments want to be reached?  How are we reaching them now?  How are our Channels integrated?  Which ones worked best?  Which ones are most cost- efficient?  How are we integrating them with customer routines?  What are the most important costs inherent in our business model?  Which Key Resources are most expensive?  Which Key Activities are most expensive?  For what value are our customers really willing to pay?  For what do they currently pay?  How are they currently paying?  How would they prefer to pay?  How much does each Revenue Stream contribute to overall revenues? Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 39. © Operational Excellence Consulting. All rights reserved. 115 Business Model Canvas Key Partners Key Activities Value Proposition Customer Segments Key Resources Cost Structure Revenue Streams Customer Relationships Channels Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 40. © Operational Excellence Consulting. All rights reserved. 118 Business Model Canvas Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 41. © Operational Excellence Consulting. All rights reserved. 121© Operational Excellence Consulting. All rights reserved. 121 Business Model Canvas KP KA VP CR CS KR CH C$ R$ Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 42. © Operational Excellence Consulting. All rights reserved. 124 Business Model Canvas Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Source: Strategyzer This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 43. © Operational Excellence Consulting. All rights reserved. 127 Value (Proposition) Map Template Insert bumper – takeaway statement This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 44. © Operational Excellence Consulting. All rights reserved. 130 5 Phases of Business Model Design Mobilize Understand Design Implement Manage Objective Prepare for a successful business model design project Research and analyze elements needed for the business model design project Generate and test viable business model options, and select the best Implement the business model prototype in the field Adapt and modify the business model in response to market reaction Focus Setting the stage Immersion Inquiry Execution Evolution Description Assemble all the elements for successful business model design. Create awareness of the need for a new business model, describe the motivation behind the project, and establish a common language to describe, design, and analyze and discuss business models. You and the business model design team immerse yourselves in relevant knowledge: customers, technology, and environment. You collect information, interview experts, study potential customers, and identify needs and problems. Transform the information and ideas from the previous phase into business model prototypes that can be explored and tested. After an intensive business model inquiry, select the most satisfactory business model design. Implement the selected business model design. Set up the management structures to continuously monitor, evaluate, and adapt or transform your business model. This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
  • 45. © Operational Excellence Consulting. All rights reserved. 133© Operational Excellence Consulting. All rights reserved. 133 Create a Canvas of your Function Project Business Model Canvas (TEMPLATE) KP KA VP CR CS KR CH C$ R$ Source: Strategyzer Group Workshop: This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/business-model-canvas-bmc-3364
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