Chapter 4 Business Model Canvas

Definition of Business Model “A business model describes the rationale of how an organization creates, delivers, and captures value.” (Osterwalder & Pigneur, 2010) “A sustainable business model shows how an organization creates and delivers sustainable value that benefit various stakeholders.” --Tih Sio Hong

Business Model Canvas Key Customer Customer Key Value Activities Relationships Segments Partners Proposition KA CR CS KP VP Activities performed Maintained In business offering Relationship with Outsourcing partners Customers Partnering suppliers Collaborators Key Channels Solve problems Serves one or Resources CH Satisfy customer Several customer KR needs segments Communication, Asset required Distribution, To offer & deliver Sales Channels offering Cost Revenue Structure Streams CS Cost of business RS Revenue from successfully offering Offered to customers www.businessmodelgeneration.com Osterwalder & Pigneur (2010)

Business Model Canvas Sustainability

Sustainable Business Model (SBM) Key Customer Customer Key Value Activities Relationships Segments Partners Proposition KA CR CS KP VP Design Develop trusted sustainable relationships activities Solve issues & Serve & Long-term Satisfy needs in educated Collaborative Key Channels Sustainable customers Partners Resources approach CH KR Communication, Renewable Distribution Assets & Sales Resources channels Cost Revenue Structure Streams Cost incur in value offering & Reward from successfully CS RS Minimize cost of relevant create, design & offer stakeholders Sustainable Value Adapted from Business Model Canvas (Osterwalder & Pigneur, 2010), prepared by Tih Sio Hong, UKM

Serve & educate Customers Silent Customer

Sustainable Value

• Communication channel • Distribution channel • Sales channel

Trusted Relationship

Renewable resources

Design sustainable activities Bamboo Furniture Manufacturing

Long-term collaborative Partners

Minimize cost of relevant stakeholders

Sustainable Business Model for Training Company Key Partners Key Activities Value Propositions Customer Customer Segments Relationships Design Harmony Teamwork *ASEAN Training Experience Companies’ employees Universities Programmes Marketing Activities E-Community Member Club Events Cross-Cultural Experience *Government agencies/ Key Resources Channels * Local travel agencies Valuable Experience & Fun Physical training locations University students Retired Lecturers/ Trainers *Eco-Hotels Complementary Online Training Space Disneyland in Training world Universities facilities Young executives Cost Structure Revenue Streams Marketing / Promotion Training Fee Sponsorship Membership Trainer Fee honorarium Training facilities rental

Sustainable Business Model - Refurbished Computer Key Partners Key Activities Value Propositions Customer Customer Segments Relationships Refurbishing Affordable processing machine Corporate PC rental Marketing Activities E-Community Member Club Trade-in *PC producers *Software Key Resources Channels University students companies Physical outlets Skilled operation workers facilities Microsoft Complementary InterConnection TechSoup Online reservation Efficiency & Performance Social communities Cost Structure Revenue Streams Marketing / Promotion Refurbished Worker salary Trade-in cost Rental Fee Membership PC sales Fee

Spanish Movie / Irish Music

The Groupon Business Model

ACISION-Global leader in mobile messaging

Now create your own Business Model!!!