1. The Business Model Canvas
Tutorial 1: Oct 12nd, 2017
The Business Model Canvas
WANG Huimin

2. The Business Model Canvas is a common language for describing business models and adapting business models

3. Example

4. Infrastructure
Customers
Offer
Financial viability

5. Customers infrastructure Offer financial viability Customer Segment
CLIENT
SEGMENTS
Customer Segment
infrastructure
Customers
Offer
the users.
financial viability

6. Customers What to offer? infrastructure Offer financial viability
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
Customers
What to offer?
Offer
financial viability

7. Customers What to offer? infrastructure Offer financial viability
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
Customers
What to offer?
Offer
CLIENT
SEGMENTS
Channels
financial viability

8. Customer Relationship
CLIENT
SEGMENTS
Customer Relationship
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
Customers
What to offer?
Offer
CLIENT
SEGMENTS
Channels
financial viability

9. Customer Relationship
CLIENT
SEGMENTS
Customer Relationship
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
For whom?
What to offer?
CLIENT
SEGMENTS
Channels
CLIENT
SEGMENTS
Revenue Stream

10. Customer Relationship
CLIENT
SEGMENTS
Customer Relationship
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
For whom?
What to offer?
CLIENT
SEGMENTS
Key Resource
CLIENT
SEGMENTS
Channels
CLIENT
SEGMENTS
Revenue Stream

11. Customer Relationship
CLIENT
SEGMENTS
Key Activities
CLIENT
SEGMENTS
Customer Relationship
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
infrastructure
For whom?
What to offer?
CLIENT
SEGMENTS
Key Resource
CLIENT
SEGMENTS
Channels
While Key activities describes the most important things a company must do to make its business model work
CLIENT
SEGMENTS
Revenue Stream

12. Customer Relationship
CLIENT
SEGMENTS
Key Activities
CLIENT
SEGMENTS
Customer Relationship
CLIENT
SEGMENTS
Key Partnerships
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
How to offer?
For whom?
What to offer?
CLIENT
SEGMENTS
Key Resource
CLIENT
SEGMENTS
Channels
Key partnership describes the network of suppliers and partners that make the business model work
CLIENT
SEGMENTS
Revenue Stream

13. Customer Relationship
CLIENT
SEGMENTS
Key Activities
CLIENT
SEGMENTS
Customer Relationship
Key Partnerships
CLIENT
SEGMENTS
Value Propositions
CLIENT
SEGMENTS
Customer Segment
How to offer?
For whom?
What to offer?
CLIENT
SEGMENTS
Key Resource
CLIENT
SEGMENTS
Channels
CLIENT
SEGMENTS
Cost Structure
CLIENT
SEGMENTS
Revenue Stream

14. Customer Segment
Describe different groups of people or organizations an enterprise aims to serve.
Heterogeneity of customer demands
Limited resources and effective market competition
For whom are we creating value?
Who are our most important customers?
Why:

15. Customer Segment Ways of Segmentation: Extrinsic attributes
-geographical distribution
-organization …
Intrinsic attributes
- gender, age, habit, income, personality…
Consumer behavior
- Recent consumption
- Consumption frequency
- Total consumption …

16. Value Proposition
Describes the bundle of products and services that create value for a specific Customer Segment
--Why users think your product valuable?
--What kind of value in detail?
--Compound value?

17. Channels
Describe how a company communicates with its Consumer Segments to deliver a Value Proposition
Awareness—Evaluation—Purchase—Delivery— After Sale

18. Key Resource
Describe the most important assets required to make a business model work
–can be physical, financial, intellectual, or human
–can be owned or leased by the company or acquired from key partners.

19. Key Partnerships
Describes the network of suppliers and partners that make the business model work.
--Who are our key partners?
--Who are our key suppliers?
--What does your partner obtain from you?
--What do you obtain from your partner?

20. Cost Structure
Describes all costs incurred to operate a business model – such as creating and delivering value, maintaining Customer Relationships, and generating revenue
--What are the most important costs inherent in our business model?
--Which Key Resources are most expensive?
--Which Key Activities are most expensive?

21. Case Study—Skype’s Business Model

22. Case Study—Skype’s Business Model
What Skype offers?
1, Instant Messaging
2, Global phone calls
3, Value-added service: SkypeIn, SkypeOut,
Skype connect, voice massage.
4, Instant Translation

23. Case Study—Skype’s Business Model
Who is the customer?
Global users
--Individual Users
--Companies

24. Case Study—Skype’s Business Model
How to offer service?
--Skype software in all kinds of versions
--Cooperated with communications network operators

25. Case Study—Skype’s Business Model
Cost?
--Build signal communication channels
--Software development
Revenue?
--Free  Non-free

26. Case Study—Skype’s Business Model
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around

27. Case Study—Skype’s Business Model
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around

28. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around

29. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Skype.com skype apps, skype managers, skype hardware

30. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Software development and maintain,
Complaint management
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Skype.com skype apps, skype managers, skype hardware

31. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Software development and maintain,
Complaint management
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Software developer,
Skype brand
Skype.com skype apps, skype managers, skype hardware

32. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Software development and maintain,
Complaint management
Microsoft,
Telecom companies,
Hardware manufacturer,
Payment providers,
Distribution partners
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Software developer,
Skype brand
Skype.com skype apps, skype managers, skype hardware
网络运营商：

33. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Software development and maintain,
Complaint management
Microsoft,
Telecom companies,
Hardware manufacturer,
Payment providers,
Distribution partners
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Software developer
Skype brand
Skype.com skype apps, skype managers, skype hardware
Advertisement
Premium service
Skype hardware

34. Case Study—Skype’s Business Model
Provide software download,
Organize self service.
Pay the credit
Software development and maintain,
Complaint management
Microsoft,
Telecom companies,
Hardware manufacturer,
Payment providers,
Distribution partners
Voice calls,
Video calls,
Video conference
Group calls,
Sending massage
and files for free,
Cheap voice and
video calls
Global users,
Skype out users,
Company that want to make cheap international calls without travelling around
Software developer
Skype brand
Skype.com skype apps, skype managers, skype hardware
Software development and maintain,
Marketing and complaint management
Advertisement
Premium service
Skype hardware

35. Example

36. Reference
Osterwalder A, Pigneur Y. Business model generation: a handbook for visionaries, game changers, and challengers[M]. John Wiley & Sons, 》

37. Thank You!
WANG Huimin