1. Silvia Rita Sedita silvia.sedita@unipd.it
Business Model
Silvia Rita Sedita

3. Definition
A business model describes the rationale of how an organization creates, delivers, and captures value
A business model is a conceptual tool containing a set of objects, concepts and their relationships with the objective to express the business logic of a specific firm.
Therefore we must consider which concepts and relationships allow a simplified description and representation of what value is provided to customers, how this is done and with which financial consequences.

4. The origin of the concept
Search criteria: titles, abstracts, keywords, full texts of all articles in the Business Source Premier database of scholarly business journals for the word string "business model". The search included several variations of the original term like "e-business model", "new business model" or "Internet business model".
the popularity of the term "business model“ is a relatively young phenomenon
Source: Ostenwalder A., Pigneur Y., Tucci C.L. (2005) Clarifying Business Models: Origins, Present, and Future of the Concept. Communications of AIS, 15 (1): 1-40

5. Business model and technology
“Part of the relationship between technology and business models stems from the business model concept’s roots in transaction cost economics (TCE). The sharp rise in cheap information technology, bandwidth, and communication possibilities made it much easier for companies to work in so-called value webs because coordination and transaction costs fell substantially [Tapscott, Ticoll et al. 2000; Amit and Zott, 2001)”
the number of times the term "business model" appeared in a business journal (peer-reviewed
and non-peer reviewed) follows a pattern that resembles the shape of the NASDAQ market index.
Figure 1. Occurrences of the Term "Business Model" Compared to NASDAQ Fluctuations
Source: Ostenwalder A., Pigneur Y., Tucci C.L. (2005) Clarifying Business Models: Origins, Present, and Future of the Concept. Communications of AIS, 15 (1): 1-40

6. The Business Triangle
“we understand the business model as a building plan that allows designing and realizing the business structure and systems that constitute the operational and physical form the company will take. We call this relation between strategy, organization, and systems the business triangle that is constantly subject to external pressures, like competitive forces, social change, technological change, customer opinion and legal environment”
Source: Ostenwalder A., Pigneur Y., Tucci C.L. (2005) Clarifying Business Models: Origins, Present, and Future of the Concept. Communications of AIS, 15 (1): 1-40

7. The business model canvas
A shared visual language to sketch out existing or new business models

8. The 9 building blocks - 0

9. The 9 building blocks - 1 Mass market Niche market Segmented
Diversified
Multi-sided platforms …

10. Mass market

11. Segmented…enough?

12. Segmented - customized

13. Niche market

14. Diversified
B2C
B2B

15. Multi-sided platforms -1/2

16. Multi-sided platforms - 2/2

17. The 9 building blocks - 2 Newness Performance Customization Design
Brand/Status
Price
Accessibility …

18. The 9 building blocks - 3 Own Channels Direct in house sales force
web sales
Indirect
own stores
Partner Channels
partner stores
Wholesalers
Web sites

19. The 9 building blocks - 4 Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation

20. The 9 building blocks - 5 Asset sale Usage fee Subscription fee
Lending/renting/leasing
Licensing
Brokerage fees
Advertising

21. The 9 building blocks - 6 Key resources Physical Intellectual Human
Financial

22. The 9 building blocks - 7
Production
Problem solving
Platform/network

23. The 9 building blocks - 8 Why? Economy of scale Risk reduction
Access to critical resources

24. The 9 building blocks - 9 Cost structure Characteristics Cost-driven
Value-driven
Characteristics
Fixed costs
Variable costs
Economies of scale
Economies of scope

25. The 9 building blocks

28. From a nice picture to a useful tool

29. Here is the canvas!

30. How to work with this?

31. Start playing with post-it…

32. …and populate the canvas

33. …with a dynamic approach…

34. …exploring a variety of solutions…

35. And now DIY…download your canvas!

36. Business Model Theatre

37. How can companies embed values in their business models?