Business Model Canvas

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Business Model Canvas by Mind Map: Business Model Canvas

1. Revenue stream

1.1. Asset sale

1.1.1. selling ownership rights to a physical product

1.2. Usage fee

1.2.1. pay as you use

1.3. Subscription fees

1.3.1. selling continuous access to a service

1.4. Lending/Renting/Leasing

1.4.1. temporarily granting someone the exclusive right to use a particular asset for a fixed period in return for a fee

1.5. Licensing

1.5.1. giving customers permission to use protected intellectual property in exchange for licensing fees

1.6. Brokerage fees

1.6.1. intermediation services on behalf of 2 or more parties

1.7. Advertising

1.7.1. fees for advertising a specific brand, product or service

1.8. Pricing mechanisms

1.8.1. Fixed menu pricing

1.8.1.1. list price

1.8.1.2. Product feature dependent

1.8.1.3. ustomer segment dependent

1.8.1.4. Volume dependent

1.8.1.5. Predefined prices are based on static variables

1.8.2. Dynamic pricing

1.8.2.1. Negotiation

1.8.2.2. Yield management

1.8.2.3. Real-time market

1.8.2.4. Auctions

1.8.2.5. Prices change based on market conditions

2. Customer relationships

2.1. definition

2.1.1. types of relationships company establishes with customer segments

2.2. types

2.2.1. Personal assistance

2.2.1.1. The Body Shop

2.2.2. Dedicated personal assistance

2.2.2.1. Doctor

2.2.3. Self service

2.2.3.1. supermarket

2.2.4. Automated services

2.2.4.1. Citibank

2.2.4.2. Telkomsel

2.2.5. Communities

2.2.5.1. network

2.2.6. Co-creation

2.2.6.1. invites customers to build content for other customers benefit

3. Key resources

3.1. definition

3.1.1. the most important assets required to make a business model work

3.2. Types

3.2.1. Physical

3.2.2. Intellectual

3.2.3. Human

3.2.4. Financial

4. Customer Facing Brain: Emotion, Creativity Creating Value

4.1. Customer Segments

4.1.1. definition

4.1.1.1. different groups of

4.1.1.1.1. people or organisations

4.1.2. types

4.1.2.1. Mass market

4.1.2.1.1. Anyone, all markets, One undifferentiated group

4.1.2.2. Niche market

4.1.2.2.1. one specific specialized customer segments

4.1.2.3. Segmented

4.1.2.3.1. market segments with

4.1.2.4. Diversified

4.1.2.4.1. chunks of market segments that have totally different needs and problems

4.1.2.5. Multi-sided markets

4.1.2.5.1. 2 or more interdependent customer segments

4.2. Channels

4.2.1. definition

4.2.1.1. how a company communicates with and reaches its customer segments to deliver a value proposition

4.2.2. interface with customers thru

4.2.2.1. communications

4.2.2.2. distribution

4.2.2.3. sales

4.2.3. Mix

4.2.3.1. Partner's channels

4.2.3.1.1. indirect

4.2.3.2. Own Channels

4.2.3.2.1. direct

4.2.3.2.2. indirect

4.2.3.3. Both

4.2.4. Phases

4.2.4.1. Raising awareness

4.2.4.2. Helping customers evaluate the company's value proposition

4.2.4.3. Allowing customers to purchase specific products and services

4.2.4.4. Delivering the Value proposition

4.2.4.5. Providing post purchase customer support

4.2.5. find

4.2.5.1. great customer experience

4.2.5.2. maximize revenues

4.2.6. channel choice

5. The Canvas

5.1. Value Proposition

5.1.1. Definition

5.1.1.1. is

5.1.1.1.1. a bundle of

5.1.1.2. For

5.1.1.2.1. <target customer>

5.1.1.3. sample

5.1.1.3.1. For

5.1.1.3.2. For

5.1.2. Levels

5.1.2.1. weak

5.1.2.1.1. Nice to have

5.1.2.2. medium

5.1.2.2.1. Must have

5.1.2.3. strong

5.1.2.3.1. Shadow cost

5.1.3. Types

5.1.3.1. Newness

5.1.3.2. Performance

5.1.3.3. Customization

5.1.3.4. Design

5.1.3.5. Brand

5.1.3.6. Price

5.1.3.7. Cost or Risk reduction

5.1.3.8. Accessibility

5.1.3.9. Usability

5.2. Infrastructure Brain: Logic Efficiency

5.2.1. Key activities

5.2.1.1. definition

5.2.1.1.1. most important thing to make its business model work

5.2.1.2. Types

5.2.1.2.1. Production

5.2.1.2.2. Problem solving

5.2.1.2.3. Platform/Network

5.2.2. Key partners

5.2.2.1. definition

5.2.2.1.1. network of suppliers and partners that make the business model work

5.2.2.2. purpose

5.2.2.2.1. optimize business model and economy of scale

5.2.2.2.2. reduce risks

5.2.2.2.3. acquire resources

5.2.2.3. Types

5.2.2.3.1. Strategic alliances between non-competitors

5.2.2.3.2. Coopetition: Strategic partnerships between competitors

5.2.2.3.3. Joint ventures to develop new businesses

5.2.2.3.4. Buyer-supplier reltionships to assure reliable supplies

5.2.2.3.5. Commitments and obligations

5.2.3. Cost structure

5.2.3.1. definition

5.2.3.1.1. all costs incurred to operate the business model

5.2.3.1.2. pick most important costs incurred while operating under a particular business model

5.2.3.2. all these incur costs

5.2.3.2.1. creating and delivering value

5.2.3.2.2. maintaining customer relationships

5.2.3.2.3. generating revenue

5.2.3.3. Types

5.2.3.3.1. Cost-driven

5.2.3.3.2. Value driven

5.2.3.3.3. Fixed costs

5.2.3.3.4. Variable costs

5.2.3.3.5. Economies of scale

5.2.3.3.6. Economies of scope

6. Designing the Business Model

6.1. Design patterns

6.1.1. Unbundling Business Models

6.1.1.1. examples

6.1.1.1.1. Private Banking

6.1.1.1.2. Unbundling the Telco

6.1.1.2. Business Types

6.1.1.2.1. Operational excellence

6.1.1.2.2. Customer intimacy

6.1.1.2.3. Product leadership

6.1.2. The long tail

6.1.2.1. Coined by Chris Anderson

6.1.2.1.1. In media industry, shift from selling many of few items to selling few of many items

6.1.2.1.2. Made possible by

6.1.2.2. Selling less of more

6.1.2.2.1. Focus on offering a large number of products which sells infrequently

6.1.2.2.2. Aggregate of all infrequent sales of large number of items can be more than selling many of a few items

6.1.2.2.3. Requires

6.1.2.2.4. Customer segment of ONE

6.1.2.2.5. 20% of sales from 80% of items

6.1.2.3. Selling more of less items - Traditional

6.1.2.3.1. 80% of sales from 20% of items

6.1.2.4. examples

6.1.2.4.1. Book publishing industry

6.1.2.4.2. Lego's new long tail

6.1.2.5. Business Model Canvas

6.1.2.5.1. Customer Segments

6.1.2.5.2. Revenue Streams

6.1.2.5.3. Cost Structure

6.1.3. Multi-sided platforms

6.1.3.1. brings together 2 or more distinct but interdependent groups of customers

6.1.3.2. Platform of valkue to one group only if the other groups are present

6.1.3.3. platform creates value by facilitating interactions between diff groups

6.1.3.4. platform grows in value to the extent that it attracts more users

6.1.3.4.1. known as network effect

6.1.3.5. examples

6.1.3.5.1. Visa

6.1.3.5.2. Google

6.1.3.5.3. Apple

6.1.3.5.4. eBay

6.1.3.5.5. MS Windows

6.1.3.5.6. Financial Times

6.1.3.5.7. Free newspaper

6.1.3.5.8. Wii Game console

6.1.3.5.9. Xbox/PSP

6.1.3.5.10. Facebook

6.1.3.6. dilemma

6.1.3.6.1. chicken or egg

6.1.3.6.2. questions

6.1.4. FREE as a business model

6.1.4.1. definition

6.1.4.1.1. at least one substatial customer segment is able to continuously benefit from a free-of-charge offer.

6.1.4.1.2. non-paying customers are financed by another part of the business model or by another customer segment

6.1.4.2. patterns

6.1.4.2.1. free-offer based on multi-sided platform

6.1.4.2.2. free basic services with optional premium

6.1.4.2.3. initial free-offer leads into repeat purchases

6.1.5. Open Business Model

6.1.5.1. definition

6.1.5.1.1. create and capture value by systematically collaborating with outside partners

6.1.5.1.2. outside-in

6.1.5.1.3. inside-out

6.1.5.2. examples

6.1.5.2.1. P&G Connect and develop

6.1.5.2.2. GSK's Patent pools

6.1.5.2.3. The connector:Innocentive

6.2. Design Thinking

6.2.1. Customer insights

6.2.1.1. Personalize her

6.2.1.1.1. what does she

6.2.1.1.2. What are her

6.2.2. Ideation

6.2.2.1. Divergent

6.2.2.1.1. Generation

6.2.2.2. Convergent

6.2.2.2.1. Synthesis

6.2.2.3. epicenters of BM innovation

6.2.2.3.1. Resource driven

6.2.2.3.2. Offer driven

6.2.2.3.3. Customer driven

6.2.2.3.4. Finance driven

6.2.2.3.5. Multiple-epicenter driven

6.2.2.4. Process

6.2.2.4.1. 1 Team composition

6.2.2.4.2. 2 Immersion

6.2.2.4.3. 3 Expanding

6.2.2.4.4. 4 Criteria selection

6.2.2.4.5. 5 Prototyping

6.2.2.5. Brain storming

6.2.2.5.1. Stay focused

6.2.2.5.2. Enforce rules

6.2.2.5.3. Think visually

6.2.2.5.4. Prepare

6.2.3. Visual thinking

6.2.4. Prototyping

6.2.4.1. Napkin sketch

6.2.4.2. Elaborated canvas

6.2.4.3. Business case

6.2.4.4. Field test

6.2.5. Storytelling

6.2.6. Scenarios

6.3. Strategy

6.3.1. Business Model environment

6.3.1.1. FORESIGHT

6.3.1.1.1. Key Trends

6.3.1.2. COMPETITIVE ANALYSIS

6.3.1.2.1. Industry forces

6.3.1.3. MACROECONOMICS

6.3.1.3.1. Macro-economic forces

6.3.1.4. MARKET ANALYSIS

6.3.1.4.1. Market forces

6.3.1.5. How Business Model Changes over time

6.3.2. Evaluating Business Models

6.3.2.1. Amazon.com example

6.3.2.1.1. Assessment in 2005

6.3.2.1.2. Opportunities explored in 2006

6.3.2.2. SWOT

6.3.2.2.1. How SWOT impacts Business Model Evaluation

6.3.2.2.2. Internal

6.3.2.2.3. External

6.3.2.2.4. How to use

6.3.3. Business model perspective on Blue Ocean Strategies

6.3.3.1. Blue Ocean Strategy

6.3.3.1.1. is about creating completely new industries through fundamental differentiation as opposed to competing in existing industries by tweaking established models. Rather than outdoing competitors in terms of traditional performance metrics, Kim and Mauborgne advocate creating new, uncontested market space through what the authors call value innovation. This means increasing value for customers by creating new benefi ts and services, while simultaneously reducing costs by eliminating less valuable features or services. Notice how this approach rejects the traditionally accepted trade-off between differentiation and lower cost.

6.3.3.2. Four Actions Framework

6.3.3.2.1. 1. Which of the factors that the industry takes for granted should be eliminated?

6.3.3.2.2. 2. Which factors should be reduced well below the industry standard?

6.3.3.2.3. 3. Which factors should be raised well above the industry standard?

6.3.3.2.4. 4. Which factors should be created that the industry has never offered?

6.3.3.3. Blending with Business Model Canvas

6.3.3.3.1. Blend

6.3.3.4. Examples

6.3.3.4.1. Nintendo Wii Example

6.3.3.4.2. Cirque de Soliel example

6.3.3.5. Blue Ocean Steps

6.3.3.5.1. The combination of Blue Ocean Strategy tools and the Business Model Canvas provide a solid foundation upon which to question your business model from value creation, customer, and Cost Structure perspectives.

6.3.4. How to manage multiple business models

6.3.4.1. Integrated

6.3.4.1.1. SMH - Swatch

6.3.4.2. Separated

6.3.4.2.1. Nestle - Nespresso

6.3.4.3. Daimler Car2Go - unsure

6.3.4.3.1. Untitled

6.4. Design Process

6.4.1. Mobilize

6.4.2. Understand

6.4.3. Design

6.4.4. Implement

6.4.5. Manage

6.4.6. Motivation for Business Model Design

6.4.6.1. Startup

6.4.6.1.1. Satisfy market

6.4.6.1.2. Bring to market

6.4.6.1.3. Improve market

6.4.6.1.4. Create market

6.4.6.1.5. Challenges

6.4.6.2. Established

6.4.6.2.1. Reactive

6.4.6.2.2. Adaptive

6.4.6.2.3. Expansive

6.4.6.2.4. Pro-active/explorative

6.4.6.2.5. Challenges

6.4.7. Design attitude

6.4.7.1. Traditional

6.4.7.1.1. Easy to come up with alternatives but difficult to choose one

6.4.7.2. Design attitude

6.4.7.2.1. Difficult to design outstanding alternatives but easy to decide on the right one

7. Other issues

7.1. Business models beyond profit

7.2. Computer-aided business model design

7.3. Business models and Business plans

7.4. Implementing business models in new or existing organisations

7.5. Achieve better business model and IT alignment