BUSINESS MODEL CANVAS

Business Model Canvas

 A company’s business model is a high-level
representation of the manner in which the
organization generates value for the customer and
sustains itself.
 The purpose of such representation is to illustrate
the company’s core business logic
 One of the most successful business model
representation is Business Model Canvas
[Osterwalder and Pigneur, 2010)
 Key activities Customer Customer
Key partners What will your relationships segments
business spend the What types of Who are your paying
What external most time doing? interactions will your customers?
partnerships customers expect to
Product development? Do you have any
should you invest
Sales? Other? Value have with you?
non-paying
in?
proposition customers?
Key resources Channels
• Mentors? How large is this
How will customers
• Lawyers? What will it cost for: group?
find out about you?
• Distributors?
• Suppliers? Manufacturing? Do you have
Intellectual property? How will you get
multiple customer
Human resources? products to them?
segments?

Cost structure Revenue streams

• How might you make $ from this?
How much time and money will be required • What value, other than money, are you
to do this? hoping to create?
 Navigating the Environment
• The nine building blocks of developing a business
model are the elements that are mostly within the
control of the enterprise.
• But the world out there is full of threats and
Opportunities beyond your control.
• They create the environment in which your
business model will get tested for survival every
day.
 Navigating the Environment
• Just because you can’t control these factors
doesn’t mean that you can’t or should not
account for in your model.
• Doing so will help prepare your model to be
prepared for threats.
 KEY TRENDS
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MACRO ECONOMIC FORCES

 Market Forces
 Market Forces on the right side of the canvas:
Everything that is related to customer
segment.
o Ask for other segments of the customers
and which ones are more lucrative.
o Which customer segments are growing?
o Why would your customer resist for your
business model?
 Key Trends
 Key Trends above the canvas:
o How society at large is shifting?
o What technology trend affecting your
industry
o What regulations coming up that can impact
your business model?
 Industry Forces
 Industry Forces on the left of the canvas:
o Who your main competitors are?
o What advantages does their model provide?
o If a dominant competitor exists, then find
their weakness. Can you disrupt them?
o What if your suppliers and partners evolve?
o Is your industry considered crowded and
volatile
 Macro Economic Forces
 Macro-Economic Forces below the canvas:
o How is global economy doing?
o Are the markets reeling under uncertainty?
o How about the availability of the capital?
o How well is the infrastructure developed in
the markets that you are doing or planning
to do your business?
 Navigating Environment
Looking at the industry forces on the left
side of the canvas, ask,
– Does your model have competitive
advantage today? Tomorrow?

Looking at the key trends on the top of

the canvas, ask,
– Is your model prepared for emerging
trends?
 Navigating Environment
On the right for the market forces,
– Is your model in line with the evolving
customer needs?

And below for the macro economics,

– How will your model adjust to macro-
economic shifts?
 Navigating Environment
• Don’t be overwhelmed by these
elements.
• Asking and answering these questions
will help make your business model
better suited to its environment and
make that much more likely to succeed.