The Business Model Canvas
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1 Tutorial 1 of Class SEEM3450 The Business Model Canvas WANG Huimin hmwang@se.cuhk.edu.hk
2 Business Model A business model describes the underlying reasons of how an organization creates, deliv ers, and captures value for the stakeholders.
3 The Business Model Canvas A common language for describing and adapting business models
4 Example
5 Infrastructure Offer Customers Financial viability
6 infrastructure Offer Customer SEGMENT Segment S Customers SEGMENT financial viability
7 infrastructure Value Propositions What to Offer offer? Customer SEGMENT Segment S Customers financial viability
8 infrastructure Value Propositions What to Offer offer? Customer SEGMENT Segment S Customers Channels financial viability
9 Customer Relationship infrastructure Value Propositions What to Offer offer? Customer SEGMENT Segment S Customers Channels financial viability
10 Customer Relationship infrastructure Value Propositions What to offer? Customer For SEGMENT Segment whom? S Channels Revenue Stream
11 Customer Relationship infrastructure Value Propositions What to offer? Customer For SEGMENT Segment whom? S Key Resource Channels Revenue Stream
12 Key Activities Customer Relationship infrastructure Value Propositions What to offer? Customer For SEGMENT Segment whom? S Key Resource Channels Revenue Stream
13 What to offer? For whom? How to offer? SEGMENT S SEGMENT S Customer Segment Value Propositions Channels Customer Relationship Key Resource Key Activities Key Partnerships Revenue Stream
14 What to offer? For whom? How to offer? SEGMENT S SEGMENT S Customer Segment Value Propositions Channels Customer Relationship Key Resource Key Activities Cost Structure Revenue Stream Key Partnerships
15 Customer Segment Describe different groups of people or organizations an enterprise aims to serve. Heterogeneity of customer demands Limited resources and effective market competition For whom are we creating value? Who are our most important customers?
16 Customer Segment Ways of Segmentation: Extrinsic attributes -geographical distribution -organization Intrinsic attributes - gender, age, habit, income, personality Consumer behavior - Recent consumption - Consumption frequency - Total consumption
17 Value Proposition Describes the bundle of products and services that create value for a specific Customer Segment --Why users think your product valuable? --What kind of value in detail? --Compound value?
18 Channels Describe how a company communicates with its ConsumerSegmentsto delivera Value Proposition Awareness Evaluation Purchase Delivery After Sale
19 Key Resource Describe the most important assets required to make a businessmodel work can be physical, financial, intellectual, or human can be owned or leased by the company or acquired fromkey partners.
20 Key Partnerships Describes the network of suppliers and partners that make the businessmodel work. --Who are our key partners? --Who are our key suppliers? --What does your partner obtain from you? --What do you obtain from your partner?
21 Cost Structure Describes all costs incurred to operate a business model such as creating and delivering value, maintaining Customer Relationships, and generating revenue --What are the most important costs inherent in our business model? --Which Key Resources are most expensive? --Which Key Activities are most expensive?
22 Case Study Skype s Business Model
23 Case Study Skype s Business Model Who is the customer? Global users --Individual Users --Companies
24 Case Study Skype s Business Model What Skype offers? 1, Instant Messaging 2, Global phone calls 3, Value-added service: SkypeIn, SkypeOut, Skype connect, voice massage. 4, Instant Translation
25 Case Study Skype s Business Model How to offer service? --Skype software in all kinds of versions --Cooperated with communications network operators
26 Case Study Skype s Business Model Cost? --Build signal communication channels --Software development Revenue? --Free à Non-free
27 Case Study Skype s Business Model Global users, Skype out users, Company that want to make cheap international calls without travelling around
28 Case Study Skype s Business Model Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Global users, Skype out users, Company that want to make cheap international calls without travelling around
29 Case Study Skype s Business Model Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Global users, Skype out users, Company that want to make cheap international calls without travelling around
30 Case Study Skype s Business Model Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around
31 Case Study Skype s Business Model Software development and maintain, Complaint management Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around
32 Case Study Skype s Business Model Software development and maintain, Complaint management Software developer, Skype brand Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around
33 Case Study Skype s Business Model Microsoft, Telecom companies, Hardware manufacturer, Payment providers, Distribution partners Software development and maintain, Complaint management Software developer, Skype brand Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around
34 Case Study Skype s Business Model Microsoft, Telecom companies, Hardware manufacturer, Payment providers, Distribution partners Software development and maintain, Complaint management Software developer Skype brand Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around Advertisement Premium service Skype hardware
35 Case Study Skype s Business Model Microsoft, Telecom companies, Hardware manufacturer, Payment providers, Distribution partners Software development and maintain, Complaint management Software developer Skype brand Voice calls, Video calls, Video conference Group calls, Sending massage and files for free, Cheap voice and video calls Provide software download, Organize self service. Pay the credit Skype.com skype apps, skype managers, skype hardware Global users, Skype out users, Company that want to make cheap international calls without travelling around Software development and maintain, Marketing and complaint management Advertisement Premium service Skype hardware
36 Summary
37 Reference Osterwalder A, Pigneur Y. Business model generation: a handbook for visionaries, game changers, and challengers[m]. John Wiley & Sons, 2010.
38 Thank You! WANG Huimin
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