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Business Model Canvas 101
The Basics
A Business is a System
It seems like a whole. But you can deconstruct it.
The Business Model Canvas is a call-to-action. 

Execution vs abstraction.
50,98% of innovations come from business models*
*
* Science, technologie et industrie : Perspectives de lʼOCDE, 2008.
The Basics

Business 101
1
Value DeliveringValue Creation Value Proposition
1
Business is a Journey
KISS version.
Goal: adding more value along the way
DistributionInput OutputProcess Customers
1
Detailed version.
Business is a Journey
activity + ressources channels + customer relationships
Goal: adding more value along the way
suppliers + partners
The Basics

Finance 101
2
!
Finance
Business Journey
value (input)
actualisation of the 

added value (clients)potential added value (output)
revenuecosts
financial flows
Goal: Capturing some of the value added (revenue - costs)
The Building Blocks3
DistributionInput Output
Costs Revenue
Process Customers
activity + ressources channels + customer relationshipssuppliers + partners
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
How to use it?4
Customers.

How can you make their lives better?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Value proposition.

Is there a real fit between the problem & the solution?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Channels.

What interfaces will you use to communicate & sell?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer relationships.

How will you interact?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
Revenue.

What will they pay?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
Ressources.

What asset do you need to build this VP?
Activity.

How will you build this VP?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
Key Partners.

Who are your allies & suppliers?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
Costs.

What are the main sources of costs?
Channels
Key 

Partners
Value

Proposition
Costs Revenue
Activity
Customer

Segments
Ressources
Customer

Relationships
Customer

Relationships
5
* source
Principal Business Model

Inspired by the great work of Elton Pickford
A
* theorized by Chris Anderson in his book “The Long Tail“
The Long Tail*

Eg: Amazon, eBay, Netflix, Lego
eBay.com
Paypal
Buying and selling

first- or second-

hand goods
Platform 

creation & 

animation
Platform
Online 

profiles
Case study: eBay
Marketplace for 

niches
Professional

Sellers
Anyone
Niches 

segments
Fees on the

selling price
Pay by postCosts of platform & HR
B
* Also see the book “Free“ by Chris Anderson (again)
Multi-sided platforms*

Eg: Viadeo, LinkedIn, Google, Sony, Microsoft, Apple, Facebook
google.com
Free account
Costs of platform & HR
Platform 

management

& services
Platform
Case study: Google
Free research
Advertisers
Internautes
Keywords

bidding
Content

editor
Content 

monetization
FreeFree
widgets
C Freemium*

Eg: LinkedIn, Flickr, Evernote, Scoop.it
* Also see the book “Free“ by Chris Anderson (again)
Premium accounts
Free accounts
LinkedIn.com
Free account

with standard

features
Costs of platform & HR
Platform 

management

& services
Platform
Case study: LinkedIn*
Occasional

users
Advanced

users
Keywords

bidding
FreeFree
Advanced 

features
* it’s also a multi-sides platform you could add advertisers & HR companies
Customized

messages 

(auto+hand made)
D Inverted Freemium

Eg: Axa, GMF
Beneficiaries
Subscribers
Website

Phone

Email

Stores
Insurance
Ad + HR + webplatform
Client 

acquisition
Platform
Case study: GMF*
Subscribers
Beneficiaries
0 to excess 

payment
* it’s also a multi-sides platform you could add advertisers & HR companies
On timeManagement 

of the claims
HR
reimbursements
Insurance premium
Reinsurance

companies
D Freebie marketing

Eg: hp, Epson, Gillette
Distributors
Inktjet printers
Marketing + Fabrication 

+ Logistics + R&D
Marketing
IP
Case study: hp
Ink cartridges
* branding is always an asset but even more strategic in this kind of BM
Fidelity
Logistics
Branding*
R&D
Clients
Constraints
Replacements of cartridges
First buy
E Open Business Model

Eg: P&G
R&D inside the company
Case study: P&G
* branding is always an asset but even more strategic in this kind of BM
R&D

inside
R&D inside
Innocentive (web)
yourEncore.com
IP from other firms
Researcher outside 

the company
Retired Researcher
increase of R&D productivity: 85%

tiny increase of R&D costs
Case studies6
Advanced Business ModelA
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Amazon
Exercise:

Map out the BM with at least 3 value propositions
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Facebook
Exercise:

Map out the BM with at least 3 value propositions
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Meninvest
Exercise:

Map out the BM with at least 3 value propositions
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Twitter
Exercise:

Map out the BM using their growth strategy (check their S1)
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Angrybirds
Exercise:

Map out the BM with at least 3 value propositions
Financial viability & projectionB
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: Viadeo
Exercise:

Map out the BM & try to figure out their revenue

Assumptions: 50M users, 15% premium users with 20% churn rate of PU //revenue split=50% premium user, 35% HR firms, 15% ads
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: HelloMentor
Exercise:

Map out the BM

Determine how many users they should get to be profitable (average 25€, 15% fees). Assumptions: team of 10 employees (each costs 60K), 2K€ RE.
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
Case study: scoop.it
Exercise:

Map out the BM

Determine how many users they should get to be profitable (check their pricing). Same assumptions as before, highlight yours.
BonusC
Channels
Key 

Partners
Value

Proposition
Costs Benefit
Activity
Customer

Segments
Ressources
Customer

Relationships
What about you?
Exercise:

Map out the BM of your project or someone from the class

Determine how many users they should get to be profitable (check their pricing).

Highlight your assumptions.

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Digital Business Models 101