Business Model Canvas

Grzegorz Posyniak
SAP Inside Track Walldorf: January, 13th 2018 – #sitwdf #sitkids

The material contained in this handout is based on the book Business Model Generation by Alex Osterwalder & Yves Pigneur
Agenda
• Business Model Canvas (why, who, what)
• How does it look like?
• How to use it?
• Examples
• Minimal Viable Product
• My personal BMC
• Exercise
Business Model Canvas (why, who, what)
• ‘A business model explains how an organization creates, delivers and
captures value’ Osterwalder (2010, p14)
• Alexander Osterwalder
• https://strategyzer.com/
How does it look like?
 2. VALUE PROPOSITIONS 4. CUSTOMER RELATIONSHIPS 1. CUSTOMER SEGMENTS
8. KEY PARTNERS 7. KEY ACTIVITIES

6. KEY RESOURCES 3. CHANNELS

9. COST STRUCTURE 5. REVENUE STREAMS

How to use it?
1. Customer segments
2. Value Proposition
3. Channels
4. Relations
5. Revenue
6. Key resources
7. Key activities
8. Partners
9. Costs
 2. VALUE PROPOSITIONS 4. CUSTOMER RELATIONSHIPS 1. CUSTOMER SEGMENTS
8. KEY PARTNERS 7. KEY ACTIVITIES

6. KEY RESOURCES 3. CHANNELS

9. COST STRUCTURE 5. REVENUE STREAMS

 2. VALUE PROPOSITIONS 4. CUSTOMER RELATIONSHIPS 1. CUSTOMER SEGMENTS
8. KEY PARTNERS 7. KEY ACTIVITIES

6. KEY RESOURCES 3. CHANNELS

9. COST STRUCTURE 5. REVENUE STREAMS

 2. VALUE PROPOSITIONS 4. CUSTOMER RELATIONSHIPS 1. CUSTOMER SEGMENTS
8. KEY PARTNERS 7. KEY ACTIVITIES

CREATE 6. KEY RESOURCES 3. CHANNELS DELIVER

9. COST STRUCTURE 5. REVENUE STREAMS

CAPTURE
 2. VALUE PROPOSITIONS 4. CUSTOMER RELATIONSHIPS 1. CUSTOMER SEGMENTS
8. KEY PARTNERS 7. KEY ACTIVITIES

7 4
8 6. KEY RESOURCES
2 3. CHANNELS
1
6 3
9. COST STRUCTURE 5. REVENUE STREAMS

9 5
Exercise
Shepherd Business Model
 1

1. Customer segments
The different groups of people or organizations an enterprise aims to
reach and serve.

Questions to be Answered:
• For whom are we creating value?
• Who are our most important customers?
 1

1. Customer segments
Products & Services
Milk  cheese, quark, joghurt,
Meat
Wool  clothes
Customer segments
People who like to eat sheep products
Butchers & meat eaters
Spinners & People Who Like Wool Clothes (older or alternative people?)

Leather Tanneries & Co. People who like leather leather bags,
Fell E.g. expecting parents, …
Mower People with garden, green space; Gardener (see movie)
Workshops Z.B. Pupils
Scher service Shepherd
Small children
 2

2. Value Propositions
The bundle of products and services that create value for a specific
Customer Segment.

Questions to be Answered:
• What value do we deliver to the customer?
• Which one of our customer’s problems are we helping to solve?
Which customer needs are we satisfying?
• What bundles of products and services are we offering to each
Customer Segment?
 2

2. Value Propositions
Products & Services
Milk  cheese, quark, joghurt,
Meat
Wool  clothes
Customer segments
People who like to eat sheep products
Butchers & meat eaters
Spinners & People Who Like Wool Clothes (older or alternative people?)

Leather Tanneries & Co. People who like leather leather bags,
Fell E.g. expecting parents, …
Mower People with garden, green space; Gardener (see movie)
Workshops Z.B. Pupils
Scher service Other Shepherd
Streichelzoo Small children
 3
3. Channels
How a company communicates with and reaches its Customer Segments to
deliver a Value Proposition

Questions to be Answered:
• 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?
 4

4. Customer Relationships
The types of relationships a company establishes with specific
Customer Segments.

Questions to be Answered:
• What type of relationship does each of our Customer Segments
expect us to establish and maintain with them?
• Which ones have we established? How costly are they?
• How are they integrated with the rest of our business model?
5. Revenue Streams 5

The cash a company generates from each Customer Segment

(costs must be subtracted from revenues to create earnings).

Questions to be Answered:
• 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?
5. Revenue Streams 5

English Deutsch
Products Produkte
Sale of meat, milk, wool, leather, fur Verkauf von Fleisch, Milch, Wolle, Leder, Fell
Services Leistungen
Renting the sheep, workshops, shearing service Vermieten der Schafe, Workshops, Scherservice
 6
6. Key Resources
The most important assets required to make a business model work.

Questions to be Answered:
• What Key Resources do our Value Propositions require?
• What Key Resources do our Distribution Channels require?
• What Key Resources do our Customer Relationships require?
• What Key Resources do our Revenue Streams require?
 6
6. Key Resources
English Deutsch
Sheep Schafe
Willow, Hütte Weide, Stall
Forage, water, hay, straw Futter, Wasser, Heu, Stroh
Wool  clothes Wolle
Food and water Futter- & Wassertrog
Walking helper, shepherd dog Gehilfe, Hütehund
Shearing machine, milking machine Schermaschine, Melkzeug
Means of transport Transportmittel
Start capital, liquid capital Startkapital, verfügbares
Kapital
 7

7. Key Activities
The most important things a company must do to make its business
model work.

Questions to be Answered:
• What Key Activities do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue streams?
 7

7. Key Activities
English Deutsch
Feeding Füttern
Care: keep sheep clean, care for fur, Pflege: Schafe sauber halten,
help with births, ... Fell pflegen, bei Geburten
halfen, …
Milking & shearing, butcher (?) Melken & Scheren,
Schlachten (?)
Administration: shopping, office Verwaltung: Einkaufen,
work, financial monitoring Büroarbeit, Überwachen der
Finanzen
Marketing, maintaining contacts Marketing, Kontakte zu
with partners / customers; Care of Partnern/Kunden pflegen;
the website Pflege der Website
 8

8. Key Partnerships
The network of suppliers and partners that make the business model
work.

Questions to be Answered:
• Who are our Key Partners?
• Who are our Key Suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
 8

8. Key Partnerships
English Deutsch
Shepherd Community Schäfergemeinschaft
Bundled food orders Gebündelte
Futterbestellungen
Specialty shop for sheep Fachgeschäft für
accessories Schafzubehör
Butchers: butchering, meat Metzgereien: Schlachten,
processing & selling Fleischverarbeitung & -
verkauf
mills Spinnereien
wool processing Wollverarbeitung
tanneries Gerbereien
leatherworking Lederverarbeitung

farmer Bauer
e.g. Use the space in the stable z.B. Platz im Stall nutzen
9. Cost Structure 9

All costs incurred to operate a business model.

Questions to be Answered:
• Who are our Key Partners?
• Who are our Key Suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
9. Key Partnerships
English
Recurring expenditure
Lease for field, rent stall, feed,
water, advertising (ads, posters,
website, electricity, pay for
assistants, repair costs, new
sheep, veterinarian, straw
Basic equipment (one-time
expenditure)
Pasture fence, pasture, troughs,
milking equipment, shearing
machine, means of transport,
stable (if purchased)
9
Deutsch
Wiederkehrende Ausgaben
Pacht für Feld, Miete Stall,
Futter, Wasser, Werbung
(anzeigen, Plakate, Website,
Strom, Lohn für Gehilfen,
Reparaturkosten, neue
Schafe, Tierarzt, Stroh
Grundausstattung
(einmalige A.)
Weidezaun, Weide, Tröge,
Melkenzeug,
Schermaschine,
Transportmittel, Stall (wenn
gekauft wird)
MVP (Minimum Viable Product)
MVP (Minimum Viable Product)
Foto: Pattern Cards des BMI Lab St. Gallen