Business Model Generation

Strategy Workshops

Business Model Generation

9 years of
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Written by Alexander Osterwalder & Yves Pigneurand and coauthored by 470 Business Model Canvas practitioners from 45
countries, Business Model Generation offers powerful, simple,
tested tools for understanding, designing, re-working, and
implementing business models.
http://www.businessmodelgeneration.com/

Business Model

A business model
describes the rationale
of how an
organisation creates,
delivers and captures
value.
9 Building Blocks

The 9 Building Blocks Customer Segments

Customer Segments

- mass

market
- niche market
- segmented
- diversified
- multi-sided platforms

The 9 Building Blocks Value Propositions

Value Proposition

- newness

- performance
- customisation
- getting the job done
- design
- brand/ status
- price
- cost reduction
- risk reduction
- accessibility
- convenience/ usability

Customer Segments

The 9 Building Blocks Channels

Value Proposition

Customer Segments

- own
- partner
- direct
- indirect
Channels

The 9 Building Blocks Customer Relationships

Value Proposition

Customer Segments
Customer Relationships

- personal assistance
- dedicated personal
assistance
- self-service
- automated services
- communities
- co-creation

Channels

The 9 Building Blocks Revenue Streams

Value Proposition

Customer Segments
Customer Relationships

- asset sale
- usage fee
- subscription fees
- lending/ renting/ leasing
- licensing
- brokerage fees
- advertising

Revenue Streams
Channels

The 9 Building Blocks Key Resources

Value Proposition

Customer Segments
Customer Relationships

- physical
- intellectual
- human
- financial

Revenue Streams
Channels
Key Resources

The 9 Building Blocks Key Activities

Value Proposition

Customer Segments
Customer Relationships

Key Activities

- production
- problem solving
- platform/ network

Revenue Streams
Key Resources

Channels

The 9 Building Blocks Key Partnerships

- optimisation/
economy of scale
- reduction of risk
& uncertainty
- acquisition of
resources and
activities

Key Partnerships

Value Proposition

Customer Segments
Customer Relationships

Key Activities

Revenue Streams
Key Resources

Channels

The 9 Building Blocks Cost Structure

- cost-driven
- value-driven
- fixed costs
- variable costs
- economies of
scale
- economies of
scope

Key Partnerships

Customer Segments

Value Proposition

Customer Relationships
Key Activities

Revenue Streams
Channels

Key Resources

Cost Structure

The Business Model Canvas

KP

KA

VP

CR

KR

C$

left canvas: efficiency

CS

CH

R$

right canvas: value

The Business Generation Model Canvas is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit
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The Business Model Canvas - Example

KP

KA

Customers who
build new LEGO
designs and post
them online
become key
partners generating
content and value

LEGO has to
provide and
manage the
platform/ logistics
that allow
packaging/ delivery
of customer made
sets

KR
LEGO has not yet
fully adapted its
resources and
activities, which are
optimised primarily
for the mass market

C$

The Factory leverages production

and logistics costs already incurred
by its traditional retail mode

VP

CR

LEGO Factory
substantially
expands the scope
of the off-the-shelf
kit offering by giving
LEGO fans the tools
to build, showcase,
and sell their own
custom designed
kits

LEGO Factory
builds a Long Tail
community around
customers who are
truly interested in
niche content and
want to go beyond
off-the-shelf kits

CH
LEGO Factorys
existence depends
heavily on the Web
channel

R$

CS
Thousands of new,
customer designed
kits perfectly
complement LEGOs
standard sets of
blocks. LEGO
Factory connects
customers who
create customised
designs with other
customers, thus
becoming a
customer matchmaking platform and
increasing sales

LEGO Factory aims to generate

small revenues from a large number
of customer designed items. This
represents a valuable addition to
traditional high-volume retail
revenues.

The Process Strategy Workshops

Preparation

Assess

Design

prepare for successful

BMD project

research and analyse

elements needed for
BMD

generate and test

viable business
models; select the best

Manage

Implement

adapt and modify the

model in response to
market reaction

implement the business

model prototype in the
field

Contact
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