BUSıNESS MODELS «CANVAS»

What is Business Model? ** A business model describes the rationale of how an organization creates, delivers and captures value.** «This concept can become a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives. «

CUSTOMER SEGMENTS  Which classes are you creating values for?  Who is your most important customer? For example:  Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients.  Niche Market: Customer segmentation based on specialized needs and characteristics of its clients.

 Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.  Diversify: A business serves multiple customer segments with different needs and characteristics.  Multi-Sided Platform / Market: For a smooth day to day business operation, some companies will serve mutually dependent customer segment.

VALUE PROPOSITIONS It seeks to solve customers’ problems and satisfy customer needs with value propositions.  What core value do you deliver to the customer?  Which customer needs are you satisfying?  The value propositions may be:  Quantitative- price and efficiency  Qualitative- overall customer experience and outcome

CHANNELS Value propositions are delivered to customer through communication, distribution, and sales Channels.  Through which channels that your customers want to be reached?  Which channels work best?  How much do they cost? How can they be integrated into your and your customers’ routines?

CUSTOMER RELATıONSHıPS Customer relationships are established and maintained with each Customer Segment.  What relationship that the target customer expects you to establish?  How can you integrate that into your business in terms of cost and format?

 Personal Assistance: Assistance in a form of employee-customer interaction.  Dedicated Personal Assistance: The most intimate and hands on personal assistance where a sales representative is assigned to handle all the needs and questions of a special set of clients.  Self Service: The type of relationship that translates from the indirect interaction between the company and the clients.  Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and his/her preferences.  Communities: Creating a community allows for a direct interaction among different clients and the company.

REVENUE STREAMS Revenue streams result from value propositions successfully offered to customers.  For what value are your customers willing to pay?  What and how do they recently pay? How would they prefer to pay?  How much does every revenue stream contribute to the overall revenues?

 Asset Sale - (the most common type) Selling ownership rights to a physical good.  Usage Fee - Money generated from the use of a particular service.  Lending/Leasing/Renting - Giving exclusive right to an asset for a particular period of time.  Licensing - Revenue generated from charging for the use of a protected intellectual property.  Advertising - Revenue generated from charging fees for product advertising.

KEY RESOURCES Key resources are the assets required to offer and deliver the previously described elements.  What key resources does your value proposition require?  What resources are important the most in distribution channels, customer relationships, revenue stream…?

KEY ACTıVıTıES  What key activities does your value proposition require?  What activities are important the most in distribution channels, customer relationships, revenue stream…?

KEY PARTNERSHıPS  Who are your key partners/suppliers?  What are the motivations for the partnerships?

COST STRUCTURE  What are the most important costs inherent in our business model?  What are the most cost in your business?  Which key resources/ activities are most expensive? For example :  Cost-Driven - This business model focuses on minimizing all costs and having no frills.  Value-Driven - Less concerned with cost, this business model focuses on creating value for their products and services.