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Business Model Canvas
al-Amjad Tawfiq Isstaif
@isstaif
Wikilogia Bootcamp for Startup Weekend Damascus
Wikilogia Hackerspace
Business Model Generation
http://businessmodelalchemist.com/blog/2013/01/the-business-model-theater-can-you-put-on-ashow.html
Prototyping
Business Model Canvas
Customer Segments


Customer groups represent separate
segments if:


Their needs require and justify a distinct offer



They are reached through different Distribution
Channels



They require different types of relationships



They have substantially different profitabilities



They are willing to pay for different aspects of the
offer
Examples


Mass market



Niche market (Carpet-Manufacturing)



Segmented (MTN)



Diversified (Amazon)



Multi-sided platforms (or multi-sided
markets)(Magazines)
Value Proposition
Examples


Newness (Mobile)



Performance (PC)



Customization (Co-creation)



“Getting the job done” (Rolls-Royce)



Design



Brand/status (Rolex)



Price (No frills airlines, Nano, Freemium)



Cost reduction (hosted cloud services)



Risk reduction (service guarantee)



Accessibility (NetJets)



Convenience/usability (Apple iTunes and iPod)
Channels


Channels serve several functions, including:


Raising awareness among customers about a
company’s products and services



Helping customers evaluate a company’s Value
Proposition



Allowing customers to purchase specific products
and services



Delivering a Value Proposition to customers



Providing post-purchase customer support
Customer Relationship


Customer relationships may be driven by the
following motivations:


Customer acquisition



Customer retention



Boosting sales (upselling)


Personal assistance



Dedicated personal assistance



Self-service



Automated services



Communities



Co-creation
Revenue Streams
A business model can involve two diΩerent types
of Revenue Streams:
1. Transaction revenues resulting from one-time
customer payments
2. Recurring revenues resulting from ongoing
payments to either deliver a Value Proposition
to customers or provide post-purchase
customer support
Examples


Asset sale



Usage fee



Subscription fees



Lending/Renting/Leasing



Licensing



Brokerage fees



Advertising
Key Resources
Examples



Physical
Intellectual (brands, proprietary knowledge,
patents and copyrights, partnerships, and
customer databases)



Human



Financial
Key Activities


Production



Problem solving



Platform/network
Key Partners
Types




Companies create alliances to optimize their
business models, reduce risk, or acquire
resources

We can distinguish between four different
types of partnerships:


Strategic alliances between non-competitors



Coopetition: strategic partnerships between
competitors



Joint ventures to develop new businesses



Buyer-supplier relationships to assure reliable
supplies
Motivation


Optimization and economy of scale



Reduction of risk and uncertainty



Acquisition of particular resources and
activities
Cost Structure
Cost-driven and Value-driven


Cost-driven



Value-driven



Fixed costs



Variable costs



Economies of scale



Economies of scope
Economies of Scale
Customer Dev and Lean Startup
Product-Market Fit
Problem-Solution fit.
What functional jobs is your customer trying get
done? (e.g. perform or complete a specific
task, solve a specific problem, ...)

What social jobs is your customer trying to get
done? (e.g. trying to look good, gain power or
status, ...)
What emotional jobs is your customer trying get
done? (e.g. esthetics, feel good, security, ...)
What basic needs is your customer trying to
satisfy? (e.g. communication, sex, ...)
What does your customer find too costly? (e.g.
takes a lot of time, costs too much money,
requires substantial efforts, ...)

What makes your customer feel bad?(e.g.
frustrations, annoyances, things that give them
a headache, ...)
How are current solutions underperforming for
your customer? (e.g. lack of features,
performance, malfunctioning, ...)
What are the main difficulties and challenges
your customer encounters? (e.g. understanding
Which savings would make your customer
happy? (e.g. in terms of time, money and effort,
...)

What outcomes does your customer expect and
what would go beyond his/her expectations?
(e.g. quality level, more of something, less of
something, ...)
How do current solutions delight your customer?
(e.g. specific features, performance, quality, ...)

What would make your customer’s job or life
easier? (e.g. flatter learning curve, more
... produce savings? (e.g. in terms of time,
money, or efforts, ...)
... make your customers feel better? (e.g. kills
frustrations, annoyances, things that give them
a headache, ...)
... fix underperforming solutions? (e.g. new
features, better performance, better quality, ...)
... put an end to difficulties and challenges your
customers encounter? (e.g. make things
easier, helping them get done, eliminate
resistance, ...)
...create savings that make your customer
happy? (e.g. in terms of time, money and effort,
...)

... produce outcomes your customer expects or
that go beyond their expectations? (e.g. better
quality level, more of something, less of
something, ...)
... copy or outperform current solutions that
delight your customer? (e.g. regarding specific
features, performance, quality, ...)
... make your customer’s job or life easier? (e.g.
Competing for Customers
Fill Out Your VP Designer Canvas
Test your Customer Assumptions
Adjust your Customer Assumptions
Based on Insights
Redesign your Value Proposition
Based on Insights
Start Testing your Value Proposition
Business models | Wikilogia Bootcamp for SWDamascus
Business models | Wikilogia Bootcamp for SWDamascus
Business models | Wikilogia Bootcamp for SWDamascus
Business models | Wikilogia Bootcamp for SWDamascus
Business models | Wikilogia Bootcamp for SWDamascus
Business models | Wikilogia Bootcamp for SWDamascus

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Business models | Wikilogia Bootcamp for SWDamascus