1. BUSINESS MODEL DEVELOPMENT Module 1 The Business Model Canvas Business Administration Program Faculty of Business Administration and International Relations 1 st semester, 2013-2014 www.businessmodelgeneration.com

2. The Business Model Canvas Language Designing Visualizing Assessing Changing Business Models

3. The Business Model Canvas A business model describes the rationale of how an organization creates, delivers, and captures VALUE. A business model is a blueprint for a strategy implemented through organizational structures, processes and systems. A business model describes the rationale of how an organization creates, delivers, and captures VALUE. A business model is a blueprint for a strategy implemented through organizational structures, processes and systems.

4. Four Main Areas of a Business CustomersOffer Infrastructure Financial Viability

5. 9 Building Blocks of Business Modeling Who does the organization or business serve? 1. Customer Segments (CS) VPs solve customer problems VPs satisfy customer needs 2. Value Propositions (VP) How are VPs delivered to customers? Communication, distribution, sales channels 3. Channels (CH)

6. 9 Building Blocks of Business Modeling Establishing customer relations Maintaining CR in each CS 4. Customer Relationships (CR) These result from value propositions that are successfully offered to customers. 5. Revenue Streams (R$) Assets that are required to offer and deliver the previously-described elements (1-5) Communication, distribution, sales channels 6. Key Resources (KR)

7. 9 Building Blocks of Business Modeling These are performed to offer and deliver business model elements 1-5. 7. Key Activities (KA) Alliances Some activities are outsourced (“non-core competencies”). Some resources are acquired outside the enterprise (“make or buy”). 8. Key Partnerships (KP) All elements in the business model result in the cost structure (that is, having a cost component). 9. Cost Structure (C$)

8. The Business Model Canvas

9. The Business Model Canvas Template

10. Your ’ s Business Model www.businessmodelgeneration.com Cost structure Revenue streams Key resources Channels Key activities Key partners Value proposition Costumer relationships Costumer segments Text

11. www.businessmodelgeneration.com Cost structure Revenue streams Key resources Key activities Key partners Value proposition Costumer relationships Costumer segments Channels Text

12. Activity: Business Model Canvas

13. The Business Model Canvas DISCUSSION

14. Customer Segments

15. Value Proposition

16. Revenue Streams

17. Key Partnerships

18. Case Study: Symple App Symple App - a mobile phone application that allows the chronically ill to keep a diary of symptoms Who might want that information? Patients, doctors, and drug companies

19. Symple App: Customer Needs Patient – having accurate information about symptoms on a daily basis will improve treatment Doctors – can better manage symptoms if they have accurate information to prescribe for Drug Companies – can produce drugs that can better solve problems if they know what the real problems are

20. Symple App: Value to Patients Symple App will help the patient capture accurate information about how they are feeling, thus improving their diagnosis and refining treatment plans

21. Symple App: Value to Doctors Symple App will deliver reliable and accurate information which could improve efficacy of patient treatment plans May surface up negative food or drug interactions

22. Symple App: Value to Drug Company Symple App will deliver reliable and accurate information to drug companies to better understand how the drugs act and react Improves proper patient targeting and dosage recommendations

23. Potential Revenue Streams Patients pay for the Symple and keep data private Patients get Symple free and the business is offset by ad revenue by drug and insurance companies Drug or insurance companies license Symple to collect and manage their own data Doctors subscribe to patient feed of data and buy “ reports ” that summarize patient behaviors and impact

24. Potential Key Partnerships Insurance Companies Drug Companies Doctors Electronic Health Record Software Providers

25. Activity: Business Model Canvas

26. Business Model Canvas

27. Reminder: Weekly Reflections

28. Technovation Challenge Google Group

29. Share with us on Twitter & Facebook Tweet us: @_technovation_ #technovation Like us on Facebook: Technovation Challenge

30. Ongoing Offsite Activities Customer Development Usability Testing Evaluate Data Continue with App Inventor Build Prototype

31. BUSINESS MODEL EXAMPLES

32. 6-32 Dell’s Business Model (2 of 2) Dell’s Approach to Selling PCs versus Traditional Manufacturers