This document discusses business model design and introduces the Business Model Canvas as a tool. It explains that the Canvas breaks a business model down into 9 building blocks: key partners, key activities, key resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams. An example of the iPod/iTunes business model is provided. The document concludes by assigning students the task of designing their own business model relating to a project using the Business Model Canvas.

1. Designer

2. Reference book:
Business Model Generation:
A Handbook for Visionaries,
Game Changers, and
Challengers
Author:
Alexander Osterwalder and
Yves Pigneur

3. 1. Understand what is “Business Model”
2. The 9 Building Blocks of a Business
3. Examples of some common patterns
4. Using the Business Model Canvass
Learning Objectives
Be a Business Model Designer

5. Example: Book Publishing
1. Through publisher
2. Self-publish
3. Sponsored book
4. Customized book
5. FREE for marketing
6. Publish on demand
7. Co-created book
8. Online book (ebooks)

6. Why Business Model Design?

7. Without a Common language

8. Common Identity, language of work
Common values, attitude & behaviour

9. Visualize the ideas –
tell the story

11. Business Model Canvass

15. The 9 Building Blocks

16. • Common needs
• Common behaviour
• Common attributes

18. No
customers
Crap
Complete
on Value
Complete
on price
Unique
Valuable

37. An example….
Apple iPod / iTune

41. General facts:
• 161 million members, Revenues US$522 million
• Help professionals stay connected to each other
• Manage their professional identity
Individual Solutions:
• Basic (FREE)
• Premium services (Paid)
Corporate Solutions:
• Hiring solutions
• Marketing & Advertising

42. 3 Key Revenues Streams:
• Premium service (20%)
• Hiring solutions (50%)
• Marketing solutions (30%)
Sales Channels:
• Corporate solutions – Online & Field Sales (55%)
• Premium solutions - Online (45%)
Competition:
• Job board like Monster, JobDB etc
• BranchOut (integrated with Facebook)
Financial Year 2011:
Total revenues
US$522 million

47. Designing Your
Business Model

51. Assignments:
1.) Design the business model relating to your project
2.) Each group to present in next week’s class (5 mins)