Business Modeling

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Business Model Canvas
 Business Plan vs Business Model
BUSINESS PLAN BUSINESS MODEL
• Takes too long to write • A business model describes the
• Seldom Updated rationale of how an organization
creates, delivers and captures
• People who ask you to make a
value.
business plan won’t have requisite
time to read it • Models are Dynamic
• Plans are static
 BUSINESS MODEL CANVAS
resources channels
 Single, clear,
Describe your compelling Something that Describe
List the top
proposed message that cannot easily be
1-3 solution to states why you bought or copied your target
problems solve the are different and (patents, dream customers
you want problems worth paying team, insider and how
attention to. information)
to solve many there
are in the
(Example: You can find
(Be specific)
a job in less than 60 Philippines
days)
Key numbers that tell
you how your End result + Specific How will you (Example: young
period of time + male doctors who
business is doing reach your
address objection) are not affiliated
(minimum success
customers? with any hospital)
criteria)

Identify how you will make money

Fixed costs & variable costs
(Example: Transaction Based, Subscription Fees,
Advertisement Fee, Rental Fees)
World View of an Entrepreneur
World View of a Customer
World View of an Investor
CUSTOMER KEY ACTIVITIES KEY
RELATIONSHIPS Developing and PARTNERS
maintaining its • Companies and
• Provides a free organizations to expand
technology platform,
• Users, social networking its reach and improve its
attracting and offerings.
businesses, platform that
retaining users and • For example, the Individuals,
advertisers, and allows users to company has
advertisers, analyzing businesses,
developers. connect and partnerships with media
user data to improve advertisers,
communicate with companies and
• The company the platform, and publishers to improve its developers,
friends and family,
provides expanding its content offerings, and it and
share content, and has partnerships with
customer business through organizations.
discover new hardware manufacturers
support through strategic acquisitions Facebook
information. to optimize its platform
its website and and partnerships. for different devices. provides a
• Provides
mobile apps and businesses and platform for
RESOURCES
encourages user advertisers with a these
feedback and powerful tool for customers to
• Technology Website, Mobile
engagement reaching and connect and
platform engaging with apps
through features interact with
• User data their target each other.
like comments, • Brand, and its The company also owns
audience.
reactions, and employees.
other popular social
media platforms such as
shares. Instagram and
WhatsApp.

The costs of developing and maintaining its technology
platform, employee salaries and benefits, marketing
and advertising costs, and the costs of acquiring and
integrating new businesses and technologies.
Facebook generates revenue primarily through advertising.
Advertisers pay to have their ads displayed to specific target
audiences on the Facebook platform. The company also
generates revenue through other sources such as virtual and
digital goods, e-commerce, and payments.
CUSTOMER KEY ACTIVITIES KEY
RELATIONSHIPS PARTNERS
• Acquiring and Netflix has partnerships
N/A creating content, with content providers,
developing and Netflix offers a vast
device manufacturers,
maintaining its library of TV and internet service Individuals
technology shows, movies, providers. These and
infrastructure, documentaries, partnerships help the
households
and marketing and other video company acquire and
distribute content, reach that are
and promoting its content that can be
new customers, and interested in
service. accessed from any
device with an
improve the quality of its consuming
service. video content.
internet
connection. The
RESOURCES platform also
offers original Website and
Content library, content that can't mobile app, as well
technology be found as through third-
infrastructure, and anywhere else. party devices like
employees. smart TVs, gaming
consoles, and
streaming media
players.

Netflix's cost structure includes content acquisition Netflix generates revenue primarily through monthly
and production costs, technology and infrastructure subscription fees. The company also generates
costs, marketing and advertising costs, and revenue through licensing deals and partnerships with
employee salaries and benefits. content providers.
CUSTOMER KEY ACTIVITIES KEY
RELATIONSHIPS PARTNERS
Developing and
maintaining its Car manufacturers,
technology insurance providers, and
Uber has a direct It provides a financial institutions. Riders and
relationship with platform, managing convenient, drivers. The
These partnerships help
its customers, relationships with reliable, and cost- the company to acquire platform offers
drivers and riders, effective and maintain vehicles for
and provides a convenient
and marketing and transportation its drivers, ensure the
customer transportation
promoting its service that can be safety of its riders and
support through option for
service. accessed through a drivers, and provide
its app and financing options for riders, while
website. The smartphone app. also providing
drivers who want to
company also The platform offers purchase a vehicle. an opportunity
a range of ride
has a rating for drivers to
options to meet the
system that RESOURCES earn money by
needs of different
allows customers Smartphone app that can providing
users, and provides
to rate their Technology transparency be downloaded from the transportation
drivers and platform, its around pricing and App Store or Google Play. services.
provide network of drivers, The platform also has a
the availability of
feedback. and its brand. website that can be used
drivers. to access the service.

Uber's cost structure includes the costs of developing Uber generates revenue through a commission on each
and maintaining its technology platform, the costs of ride that is booked through its platform. The company
acquiring and maintaining its network of drivers, and also generates revenue through other services, such as
the costs of marketing and promoting its service. food delivery and freight transportation.
 For online references, visit:

www.leanstack.com
 2
Group Activity:
Create your Lean Canvas
(1) Each group should ONLY have a maximum of five (5) members.
(2) Hold brainstorming sessions to flesh out your ideas for the product or service
you'd like to produce on your Business Model Canvas.
(3) Complete the Business Model Canvas template by filling in each component.
(4) Provide a printed copy of your final Business Model Canvas for submission.
(Please include the names of the group members).
(5) Craft a PowerPoint presentation of your Business Model Canvas. (Presentation will
be done during the class meetings).
(6) This group activity will be graded based on the rubrics set (Max of 30 points).
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