Cost Structure

Revenue Streams
Value Propositions
Open-Source Software
Entrepreneurial Business Modelling v2.2
ose !ei"eira # oni Salminen
$niversit% of !ur&u
On'
(esigned )%' (esigned for'
*teration'
+e% Partners
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring frompartners?
Which key activities do partners perform?
Motivations for partners,ips'
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
Technical feasibility
Timely feasibility
What value do we deliver to the customer?
Which one of our customers problems are we helpin to solve?
What bundles of products and services are we offerin to each
!ustomer "ement?
Which customer needs are we satisfyin?
Why would particular customers pay?
What is the ultimate customer#end user?
C,aracteristics
$ewness
%erformance
!ustomization
&'ettin the (ob )one*
)esin
+rand#"tatus
%rice
!ost Reduction
Risk Reduction
Accessibility
!onvenience#,sability
!ompellin
!ohort
!omplementarity
!o-creatibility
+e% Resources
What key resources do our value propositions require?
Our distribution channels?
!ustomer Relationships?
Revenue "treams?
!%pes of resources
)iital
%hysical
.ntellectual /trademarks0 data1
2uman /skills0 knowlede1
3inancial
Customer Relations,ips
What type of relationship does each of our customer
sements e4pect us to establish and maintain with them?
Which ones have we established?
2ow are they interated with the rest of our business model?
2ow costly are they?
E"amples
%ersonal assistance
)edicated %ersonal Assistance
"elf-"ervice
Automated "ervices
!ommunities
!o-creation
Customer Segments
3or whom are we creatin value?
Who are our users and who are our customers?
Who are our most important users?
Who are our most important customers?
5ass 5arket
$iche 5arket
"emented
)iversified
5ulti-sided %latform
3or what value are our customers really willin to pay? 3or what do they currently pay?
2ow are they currently payin? 2ow would they prefer to pay? 2ow is money collected?
2ow much does each revenue stream contribute to overall revenues?
2ow each of the partners add value to the profit chain? 2ow and when users turn in customers?
!%pes -i"ed Pricing (%namic Pricing
Asset "ale 6ist %rice $eotiation/barainin1
,sae 3ee %roduct feature dependent 7ield manaement
"ubscription 3ees !ustomer sement dep8 %eak-time market
6endin#Rentin#6easin 9olume dependent
6icensin
+rokerae fees
Advertisin
What are the most important costs inherent in our business model?
Which key resources are most e4pensive?
Which key activities are most e4pensive?
*s %our )usiness more'
!ost )riven /leanest cost structure0 low price value proposition0 ma4imumautomation0 e4tensive
outsourcin1
9alue )riven / focused on value creation0 premiumvalue proposition1
Sample c,aracteristics'
3i4ed !osts /salaries0 rents0 utilities1
9ariable costs
:conomies of scale
:conomies of scope
7ear 5onth )ay
$o8
!,is wor& is licensed under t,e Creative Commons .ttri)ution-S,are .li&e /.0
!o view a cop% of t,is license1 visit ,ttp'22creativecommons.org2licenses2)%-sa2/.02
!,is wor& is drawn on top of t,e following previous wor&s'
Osterwalder1 ..1 and 3. Pigneur. Business Model 4eneration' . 5and)oo& for Visionaries1 4ame C,angers1 and C,allengers. 6ile%1 2070.
Saw%1 O. .. E.1 and -. Pereira. Business Modelling in t,e (%namic (igital Space' .n Ecos%stem .pproac,. Springer1 207/.
!on% 6asserman. 2008. 9Building a Business on Open Source Software: availa)le at' ,ttp'22wor&s.)epress.com2ton%;wasserman2/
u,o <indman et al. =2077>. C,oosing Open Source Software <icense and Corresponding Business Model. *EEE Software1 2?1 @1 pp. /7-/A.
Processes and Relations,ips
5ow are )usiness processes1 value c,ains and relations,ips organiBedC
6,at ot,er /rd part services are needed to deliver t,e service2product2platformC
5ow will power and decision ma&ing )e controlledC
.re partners more dependent on us t,an we on t,emC
%rocesses
%artnerships
%oolin
!oordination mechanisms
Service Platforms
6,at are t,e platforms ena)ling processes and relations,ipsC
Architecture
Anosticity
Acquisition
Access
*nterfaces # D6owD E"perience
5ow does t,e customer interact wit, t,e service2product2platformC
5ow does customer get a DwowD effectC
2ardware
"oftware
:nhancements and limitations of new interfaces
5ultiple .nterfaces
What key activities do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?
Categories
%roblem"olvin
%latform#$etwork
+e% .ctivities
Software
production
Software
complementary
services
Non-software
related
Unique value propositions: Value substuition:
C,annels
Throuh which channels do our customer sements
want to be reached?
2ow are we reachin them now?
2ow are our channels interated?
Which ones work best?
Which ones are most cost-efficient?
2ow are we interatin them with customer routines?
C,annel p,ases'
;8 Awareness
<8 :valuation
=8 %urchase
>8 )elivery
?8 After sales
Non-digital Digital Non-digital
Digital Non-digital
Revenue model?
Subscription
Dual offer
Support and training
Dual license
Hosted Service
Advertising
ac!aging
"ommercial en#ancements
$mbedding
"onsulting and integration
atronage
%t#er: &&&&&&&&&&&&&&

Software <icensing
5ow software cop%rig,ts will )e usedC
6,at is reEuired for future )undlersC
6,at is reEuired for future derivative wor&sC
6,at legal o)ligations %ou alread% ,aveC
%ermissive licenses@ 5.T0 +")0 .pac,e
!opyleft licenses@ 5%60 4P<0 6'%6
$eed for any other?
What version of the license to employ?
2ow to enforce that licenses are respected?
Digital Non-digital