1. The Business Model Generator SEC Session
Jill Bagley
11 April 2014
11/11/2018

2. The Building Blocks (2)
CUSTOMER SEGMENT (CS) – An organization serves one or more customer segments
VALUE PROPOSITION (VP) – It seeks to solve customer problems and satisfy customer needs with value propositions
CHANNELS (CH) – Value propositions are delivered to customers through communication, distribution and sales channels
CUSTOMER RELATIONSHIPS (CR) – Customer relationships are established and maintained with each customer segment
REVENUE STREAMS (R$) – Revenue streams result from value propositions successfully offered to customers
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3. The Building Blocks (3)
KEY RESOURCES (KR) – Key resources are the assets required to offer and deliver the previously described elements . . .
KEY ACTIVITIES (KA) by performing a number of Key Activities
KEY PARTNERSHIPS (KP) – Some activities are outsourced and some resources are acquired outside the enterprise
COST STRUCTURE (C$) – The business model elements result in the cost structure
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4. The Business Model Canvas
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5. The Business Model Canvas
Customer Relationships (CR)
Key Partners (KP)
Key Activities (KA)
Value Proposition (VP)
Customer Segments (CS)
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What activities must we do to make this business model work?
What do we need to create in order to offer the value proposition?
It is the reason why customers will choose our product/service.
What value do we deliver to our customers?
What benefits does our product/service offer that has customers choosing us instead of another organization’s products?
What type of relationships do our customer segments expect us to establish and maintain?
Which ones work best?
Defines the different groups of people/ organizations we try to reach and serve.
For whom are we creating value?
Who our are most important customers?
Key Resources (KR)
Channels (CH)
What assets to we need in order to make this business model work?
What key resources do our value propositions require?
How do we communicate and reach our customer segment to deliver the value proposition?
Which ones work best?
Cost Structure (C$)
Revenue Stream (R$)
All of the costs incurred in developing and offering the product/service What it costs to operate a business model.
The revenue generated from each customer segment
For what value are our customers really willing to pay?
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6. Apple iPod/iTunes Business Model
Customer Relationships (CR)
Key Partners (KP)
Value Proposition (VP)
Customer Segments (CS)
Key Activities (KA)
Hardware design
lovemark
Record
companies
Record
companies
Switching costs
Marketing
Mass market
Seamless music experience
OEMs
People
Key Resources (KR)
Channels (CH)
Apple Brand
Apple.com
Retail stores
Apple Stores
Content & agreements
iPod hardware
iTunes store
iTunes software
Cost Structure (C$)
Revenue Stream (R$)
Large hardware revenues
Some music revenues
People
Marketing & sales
Manu-facturing
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7. Developing a Business Model Canvas for Standards
Objective: Develop a “Business Model Canvas for Standards”
Divide into 2 groups
Sketch out your business model using post-it notes to represent the items in each building block
Place the post-it notes in the appropriate “building block” on the Business Model Canvas posters
Report Out - Each team will have several minutes to describe their company business model
11/11/2018