Introduction to Business Model Canvas and how to identify a unique Value Proposition; Target Segments; Channels; Client Relationships; and Revenues

1. This SME webinar will start at
5:00 pm Dubai 4:00 pm Riyadh 3:00 pm Cairo
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Session 3: Business Model (External)
Session by Linda Elawar
Hosted by Faher Afra

2. Business Model (External)
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Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts

3. Business Model (External)
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Linda Elawar
Consulting Partner
potential.com
@lindaelawar
Your Presenter

4. Business Model (External)
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Mentoring
Focus
2-
Entrepreneurship
& Innovation
3- Business
Model (External)
•Entrepreneurship
•Innovation
•The Opportunity
Development
Streams
How will we execute
5- Starting UP
•Target Segment
•Value Proposition
•Channels & Client
Relationship
•Revenue
•Activities
•The Team & Resources
•Partnerships
•Costs
•Startup Costs
•Your Prototype
•Elevator Pitch
•Sales & Networking
Polishing the new
expansionary
business idea
Identifying
Unique Value
Proposition
Milestone
Attracting sales &
investments
Underlying
Components
Social Network and Learning
Management System to manage
each individual’s development
Blended Learning Programs
using Video Conferencing to
minimize costs
Practical and relevant
experience from regional
experts
Create an ecosystem that
links incubators, universities
etc..
6 Web
Sessions
Support to
Participants
Today’s Focus: Business Model (External)
Building the prototype
4- Business
Model (Internal)
1- Introduction
6- Team
Registration

5. Business Model (External)
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What was the old way to startup a business?
Have an
Idea
Write a
business
Plan
Pitch it
to
investors
Build
your
team
Make a
product
Sell as
much as
you can

6. Business Model (External)
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What was the result?
• It’s a roll of a dice.
• By the time you start selling your product, your business plan
would have all changed.

7. Business Model (External)
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How do we build businesses now?
Test it out
Business
Model Try to sell
Rapid
Prototype
ReDesign
based on
feedback
Reintroduce

8. Business Model (External)
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What is a Business Model?
It is a tool for describing and prototyping your business

9. Business Model (External)
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10. Business Model (External)
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The Business Model Canvas

11. Business Model (External)
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Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts

12. Business Model (External)
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Our focus today: External Elements

13. Business Model (External)
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Customer Segments

14. Business Model (External)
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Customer Segments Examples
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided Platform

15. Business Model (External)
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Value Propositions

16. Business Model (External)
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Value Propositions Characteristics
• Newness
• Performance
• Customization
• “Getting the Job Done”
• Design
• Brand/Status
• Price
• Cost Reduction
• Risk Reduction
• Accessibility
• Convenience/Usability

17. Business Model (External)
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Channels

18. Business Model (External)
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Channel Phases
• Awareness - How do we raise awareness
about our company’s products and
services?
• Evaluation - How do we help customers
evaluate our organization’s Value
Proposition?
• Purchase - How do we allow customers to
purchase specific products and services?
• Delivery - How do we deliver a Value
Proposition to customers?
• After sales - How do we provide post-
purchase customer support?

19. Business Model (External)
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Customer Relationships

20. Business Model (External)
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Customer Relationships Examples
• Personal assistance
• Dedicated Personal Assistance
• Self-Service
• Automated Services
• Communities
• Co-creation

21. Business Model (External)
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Revenue Streams

22. Business Model (External)
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Revenue Streams Types & Pricing
Types:
• Asset sale
• Usage fee
• Subscription Fees
• Lending/Renting/Leasing
• Licensing
• Brokerage fees
• Advertising
Fixed pricing
• List Price
• Product feature dependent
• Customer segment dependent
• Volume dependent
Dynamic pricing
• Negotiation( bargaining)
• Yield Management
• Real-time-Market

23. Business Model (External)
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Session Agenda
1. Business Model
2. Our focus today: External Elements
• Customer Segments
• Value Proposition
• Channels
• Customer Relationships
• Revenue Streams
3. Case Studies
4. Exercise: Identify your Unique Value Proposition
5. Final Thoughts

24. Business Model (External)
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Let’s look at three Generic BMs

25. Business Model (External)
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Bait & Hook
Economic logic: Selling a product at a loss or very low margin to
enable selling volumes of another higher margin product

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Case Study of Bait & Hook Model:

27. Business Model (External)
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Freemium
Economic logic: Giving away a basic version of your product to the
majority of users while offering one or more Premium versions to
paying users

28. Business Model (External)
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Case Study of Freemium Model:

29. Business Model (External)
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Connection Platform
Economic logic: Connecting two or more groups of either buyers or
vendors of a certain product/service at a small transaction fee per
interaction

30. Business Model (External)
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Case Study of Connection Platform Model:

31. Business Model (External)
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How would you start building the Perfect Business Model?

32. Business Model (External)
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33. Business Model (External)
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34. Business Model (External)
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Identify your Unique Value Proposition
1. Which customers are your targeting to serve?
2. Which customer needs do you plan to respond to?
3. Through which channels do you plan to reach your customer
segments?
4. What type of relationship do you expect to build and maintain
with your customers?
5. What value are your customers willing to pay?

35. Business Model (External)
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Final Thoughts
The entrepreneur always searches for change, responds to it, and
exploits it as an opportunity. – Peter F. Drucker

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Intel Challenge ME Facebook Page
Join and Like us on Facebook: Intel Challenge ME

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Intel Challenge ME Twitter
Follow us on Twitter: @ICME2013

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Sample of video cuts from previous sessions
Go to http://potential.com/resources/training-videos/ to watch video
clips on related sessions

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Thank You.