MBA Presentation on Osterwalder & Pigneur's Business Model Generation

2. BUSINESS MODEL
AS DEFINED BY OSTERWALDER AND PIGNEUR
“A business model describes the
rationale of how an
organization creates,
delivers, and captures
value”

3. BUSINESS MODEL
AS DEFINED BY OSTERWALDER AND PIGNEUR
“A business model…show[s] the
logic of how a company
intends to make money.”

4. There are nine essential and
interrelated parts within any business
covering “customers, offer,
infrastructure and financial
viability”

5. THE 9 BUILDING BLOCKS
1 CUSTOMER SEGMENTS 2 VALUE PROPOSITIONS
• Group of people a company • Products and services that
targets and chooses to serve create value for the specified
Customer Segment
• Distinctly segmented based on
common needs/attributes • Either solve a customer
problem or satisfie a customer
• Heart – “For whom are we
need – “What value do we
creating value?”
deliver to the customer?
• Mass? Niche? Segmented? Diversified?
Multi-sided markets? • Newness? Performance? Customization?
Convenience/ Usability? Brand? Price?

6. THE 9 BUILDING BLOCKS
3 CUSTOMER SEGMENTS 4 CUSTOMER RELATIONSHIPS
• Customer Touch Points • Types of relationships
utilized to deliver a Value established with a specific
Proposition Customer Segment
• Finding the right mix/match • Motivated by Customer
between Channel Types and Acquisition/ Customer
Phases is crucial – “Through Retention/ Boosting Sales –
which Channels do our “What type of relationship
Customer Segments want does each of our Customer
to be reached?” Segments expect us to
• Partner/Own/Indirect/Direct with establish and maintain with
Awareness/Evaluation/ them?”
Purchase/Delivery/After Sales
• Personal Assistance? Self-service?
Automated services? Co-creation?

7. THE 9 BUILDING BLOCKS
5 REVENUE STREAMS 6 KEY RESOURCES
• Cash Earnings generated • Most important assets
from each Customer Segment required to make the business
model work
• Transaction vs. Recurring
Revenues , Fixed vs. Dynamic • Allow the company to create
Pricing - “How much does and offer a Value Proposition,
each Revenue Stream reach markets, maintain
contribute to overall Customer relationships, and
revenues?” earn revenues – “What Key
Resources do our Value
• Asset Sale? Usage Fee? Subscription
Fee? Lending/Renting/Leasing? Propositions require?”
Licensing? Brokerage Fees? Advertising?
• Physical? Intellectual? Human?
Financial?

8. THE 9 BUILDING BLOCKS
7 KEY ACTIVITIES 8 KEY PARTNERSHIPS
• Most important activities • Most important network
required to make the business of suppliers / partners
model work required to make the business
model work
• Routine/critical tasks that
engage customers and turn a • Motivated by optimization and
profit – “What Key Activities economy of scale/ Reduction
do our Value Proposition of risk/ Acquisition of
require?” particular resources – “Who
• Production? Problem solving?
are our Key Partners? Who
Platform/Network? are our key suppliers?”
• Strategic Alliance? Coopetition? Joint
Venture? Buyer-Supplier?

9. THE 9 BUILDING BLOCKS
9 COST STRUCTURE
• All/Most important costs
incurred to operate a business
model
• Cost-driven vs. Value-driven
Cost Structures – “What are
the most important costs
inherent in our business
model?”
• Fixed costs? Variable costs? Economies
of Scale? Economies of Scope?

10. A flexible template for
capturing, analyzing, and
creating a shared language
between the 9 building blocks of a
business model

11. THE BUSINESS MODEL CANVAS

12. THE BUSINESS MODEL CANVAS
http://www.businessmodelgeneration.com/toolbox

14. BUSINESS MODEL GENERATION
Plot the Understand Find the Regularly re-
Review & Rebuild
Wall Poster
Design & Execute
Sketch & Post
Canvas on a and sketch pattern*/s assess
Poster & put out business that best suit viability &
on the wall model using your business future promise
then design with a SWOT
drawings & within each of
moveable your own
Mobilize the 9 and
post-its rebuild design
Design & as necessary
Understand Implement
Manage
* “ U N BU N D L E D ” BU S I N E S S M O D E L / T H E LO N G TA I L / M U LT I - S I D E D
P L AT F O R M / “ F R E E ” B U S I N E S S M O D E L / “ O P E N ” B U S I N E S S M O D E L

15. HTTP : / / WWW. BUSINESSMODELGENERATION . COM/
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