What are the most important costs inherent in our business model?

Which Key Resources are most expensive?

Which Key Activities are most expensive?
Revenue Streams
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?

Channels
Customer Relationships Customer Segments
channel phases:
1. Awareness
Howdo we raise awareness about our companys products and services?
2. Evaluation
Howdo we help customers evaluate our organizations Value Proposition?
3. Purchase
Howdo we allowcustomers to purchase specifc products and services?
4. Delivery
Howdo we deliver a Value Proposition to customers?
5. After sales
Howdo we provide post-purchase customer support?
Mass Market
Niche Market
Segmented
Diversifed
Multi-sided Platform
examples
Personal assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
Value Propositions Key Activities Key Partners
Key Resources
Cost Structure
What value do we deliver to the customer?
Which one of our customers problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
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 Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
characteristics
Newness
Performance
Customization
Getting the Job Done
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
categories
Production
ProblemSolving
Platform/Network
types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
motivations for partnerships:
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
is your business more:
Cost Driven (leanest cost structure, lowprice value proposition, maximumautomation, extensive outsourcing)
Value Driven ( focused on value creation, premiumvalue proposition)
sample characteristics:
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
www.businessmodelgeneration.com
The Business Model Canvas
On:
Iteration:
Designed by: Designed for:
Day Month Year
No.
types:
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
fxed pricing
List Price
Product feature dependent
Customer segment dependent
Volume dependent
dynamic pricing
Negotiation( bargaining)
Yield Management
Real-time-Market
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Segmented: The main-end users or our primary target audience are
college-educated urbanites and grocery shoppers living in New York.
These are people that are busy, career focused, and need help to
maximize their time spent in grocery stores. Our app could be used
by regular, frequent shoppers in the store for efficiency, or for people
that rarely go to the store and thus need guidance to find their way
around.
Mass market: Other potential customers (possible secondary target
audience) may be people visiting the city and do not have access to
information and thus are having difficulty finding a place to shop for
certain goods and items they need and/or need suggestions, ideas,
and advice on what to buy and cook and so in this sense, our app
may be available to the mass market.
Performance: Our app creates value by improving the service
performance offered by existing apps. In aiming to meet
corresponding growth in customer demand, we have added
the features of an added on store map, rerouting choices,
recommendation offerings, menu recipes, and more.
Customization: We have tailored our app and the service we
provide to match the specific needs of individual customers in
order to maximize value. We offer the choice of creating an
account and a filter section for users to fill in the options that
allow our system to provide offerings peculiar to their specific
needs in the number of guests, serving size, cuisine, and dietary
habits of each individual.
Design: Our product stands out because of our easy-to-use,
fast, simple, convenient, and informational design.
Price: We offer three options of a freemium, premium, and
subscription based model.
Cost reduction: By utilizing our app, we help customers in
reducing costs and maximizing efficiency throughout their
experience in-store.
Accessibility: Our app and services are easily available to
customers through the online App Store.
Convenience/usability: Through accessing the App Store through
any hand-held smartphone device, we work with Apples platform
to offer customers familiar searching, buying, and downloading
options of our app.
Awareness: Through our partnerships; Whole Foods, Apple Store,
online menu recipe websites, e-mail promotions, etc.
Evaluation: Online app description, online app reviews, customer
service inquiries, first-hand experience.
Purchase: Recommendations, sales, promotions, special offerings,
in-store, posters and banners, added on benefits along with
download of the app.
Delivery: Through efficient app.
After Sales: Automated feedback system, surveys, ratings, etc.
Self-service: We maintain no direct relationship with our customers as
our app provides all the necessary means for customers to help
themselves and to navigate their way in-store.
Automated Services: We have also created a more sophisticated form
of customer self-service through an automated process where personal
online profiles give customers access to customized services with
saved past purchase and search information. Our automated services
can recognize individual customers and their characteristics based on
their account information and tracked history data found in our search
engines related to previous orders and transactions. This will work to
simulate a closer personal relationship between our user and the app.
Usage fee: (1) Freemium: free to download and use with some features inside the app unavailable until you pay for them and (2) Premium: paid app with upfront price but free future upgrades
Subscription fee: Regular fixed fee the user is charged automatically via the App Store for using the app, and may overlap with either premium or freemium models; our app will be closer to
freemium where users can choose to pay a subscription to get ad-free and recipes as well as in-store weekly sales and coupon offerings.
Advertising: In-store as well as embedded into the app to generate revenue.
Intellectual: Software and app platform
Value-driven: We focus on value creation, offering a high degree of personalized service to our customers. Some of the most important costs inherent in our business model include:
- Data center costs
- Servers
- General and Administrative
- Marketing and Sales
- Research and Development
Platform/network: Our business is dominated by platform and
network-related key activities. Our business model requires that
we continually develop and maintain our app platform with our
key activities relating mainly to platform management, service
provisioning, and platform promotion. Other focus factors include:
- App and software development
- Platform development
- Data center operations management
Strategic alliances between non-competitors:
- Search vendors
- Device vendors
- Media companies
- Mobile operators
- Whole Foods
- App Store
- Advertisers
PSDS 4112 Entrepreneurship Brittany Kelly, Joy Kwon, Camila Neira, Cina Rosen
1
23 4 2014