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2 ‐ Business Model Generation

9 building blocks

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9 building blocks

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Customer Segments
• the different groups of people or organizations an
enterprise aims to reach and serve

Different segments if
• Their needs require and justify a distinct offer
• They are reached through different Distribution Channels
• They require dfferent types of relationships
• They have substantially different profitabilities
• They are willing to pay for different aspects of the offer

Value Propositions
• the bundle of products and services that create value
for a specific Customer Segment

– Newness
– Performance
– Price
– Design
– Brand
– Customization

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Channels
• how a company communicates with and reaches its
Customer Segments to deliver a Value Proposition

Customer Relationships
• the types of relationships a company establishes with
specific Customer Segments

– Personal assistance
– Self Service
– Automated Service
– Communities
– Co-creation

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Revenue Streams
• the cash a company generates from each Customer
Segment
(costs must be subtracted from revenues to create
earnings)

– Transaction revenues resulting from one-time customer


payments
– Recurring
R i revenues resulting
l i from
f ongoing
i payments to either ih
deliver a Value Proposition to customers or provide post-purchase
customer support

Key Resources
• the most important assets required to make a business
model work

– Physical
– Intellectual
– Human
– Financial

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Key Activities
• the most important things a company must do to make
its business model work

– Production
– Problem solving
– Platform/network

Key Partnerships
• the network of suppliers and partners that make the
business model work

– Strategic alliances between non-competitors


– Coopetition: strategic partnerships between competitors
– Joint ventures to develop new businesses
– Buyer-supplier relationships to assure reliable supplies

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Cost Structure
• all costs incurred to operate a business model.

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Task
• Based on the business you have chosen
• Make a canvas of the business
• Submit in 2 weeks

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