Customer Orientation & Business Model Canvas

Cewas Start-Up Programme, Ramallah

What is a customer?

Customer is a person or group of persons

that has be ability to choose between
different products (or services) and that
buys, receives and/or uses the products.
Source: www.strategik.fr

• Customers are the heart of any business model

• No customer, no business
• Customers will only be willing to pay if their needs are met

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When is a business successful?

Source: www.boundless.org

When the customer (not you) is convinced your

product/service creates additional value for him!

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 Understand the Customer Decision Making
Unit

User Initiator

Decision
Buyer Influencer
Roles

Payer Decider

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What make a good business idea?

• The potential of an idea depends usually only on its

customer benefits

• What problem does the solution solve for a specific

customer? Realize the specific customer need and
address the problem.

• Even the best business idea needs adjustments –

especially in dynamic markets!

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 From uncertainty to focus

Source: adapted from http://fivewhys.files.wordpress.com/2012/07/design-squiggle1.jpg

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 About business models

describes the rationale of how an organization creates, delivers

and captures value

In other words, how a company makes money!

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 The Business Model Canvas

entrepreneurial tool that allows to describe, design, challenge,

invent business models

Source: OSTERWALDER & PIGNEUR 2010

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 9 Building Blocks of a BM Canvas

Source: OSTERWALDER & PIGNEUR 2010

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 9 Building Blocks of a BM Canvas

Operational Strategic
Plan Plan

Source: OSTERWALDER & PIGNEUR 2010

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Elements of Business Models

Quelle: Osterwalder/Pigneur 2010

21.05.2013 The cewas Start-Up Approach - www.cewas.org 12

Elements of Business Models

Quelle: Osterwalder/Pigneur 2010

21.05.2013 The cewas Start-Up Approach - www.cewas.org 13

 ‫ماهو نموذج العمل او ‪Business Model‬‬

‫نموذج العم‪B‬ل ه‪B‬و رس‪B‬م توضيح‪B‬ى يقوم بتعريف‪B‬ك ال‪B‬ى مشروع‪B‬ك ع‪B‬ن طريق‬
‫وض‪B‬ع جمي‪B‬ع أس‪B‬اسيات المشروع مث‪B‬ل فكرة المشروع وماتقدم‪B‬ه من مميزات‬
‫وماهى الفئة المستهدفه والسوق المستهدف واالرباح والتكاليف وكيف ستقوم‬
‫بتوص‪B‬يل المنت‪B‬ج او الخدم‪B‬ة ال‪B‬ى الفئ‪B‬ة والس‪B‬وق المستهدفين ويتكون نموذج‬
‫العمل من تسعة نقاط هامة تغطى جميع جوانب العمل وهى كالتالى‪..‬‬
 ‫ماهو نموذج العمل او ‪Business Model‬‬

‫القيمة المضافة ‪: Value Proposition‬‬

‫وهـى األشياء المميزة بمشروعـك وأهـم ماتقدمـه للمسـتخدم ومـا يميزك عـن بقية‬
‫المنافسين‬
‫الشرائح المستهدفه ‪: Customer Segments‬‬
‫أـى مـن هـم االشخاص الذيـن تسـتهدفهم لعرض المنتـج او الخدمـه لهـم وماهو‬
‫السوق المستهدف وحجمه‬
‫العالقة مع العمالء ‪: Customer Relationships‬‬
‫أـى كيـف سـتقوم بتوصـيل منتجـك وخدمتـك الـى الشرائـح المسـتهدفه وكيف‬
‫سـتقوم بجذبهـم وماهـى الوسـائل التـى سـتستخدمها وتحتاجهـا لتوصيل هذا‬
‫المنتج او الخدمه الى هؤالء المستخدمين‬
 ‫ماهو نموذج العمل او ‪Business Model‬‬

‫شركاء النجاح ‪: Key Partners‬‬

‫من هم شركاؤك الذين يساعدوك فى اطالق المنتج او الخدمه‬
‫األنشطة األساسية ‪: Key Activities‬‬
‫أـى ماهـى المتطلبات الالزمـة والواجـب عليـك القيام بهـا لتوصـيل المنتج‬
‫والخدمة الى السوق‬
‫المصادر ‪: Key Resources‬‬
‫ماذا تملك من مصادر تساعد فى اطالق المشروع وتعززه مثل‪:‬‬
‫فريق العمل‬
‫ومكان العمل‬
‫والمعدات‬
‫واألدوات الالزمة‬
 Business model canvas - cheat sheet

Who are your key What are YOU mainly Which value do you How do you For whom do you
partners which you doing? convey to the customer? communicate with your create value?
need for the creation of E.g. Why should the customers? Who are your most
our value propositions? • Production customer chose your E.g. important customers?
E.g. partners for: • Problem-solving/ offer? (Uniqueness) • Personal Is it a
• Optimization / consulting E.g. • Self-service • Mass market?
Economy of scales • Platform/Network • Newness • Automated service • Niche market?
• Risk reduction • Performance • Communities • Segmented market?
• Acquisition of • Price • Multi-sided market?
particular resources

Source: Osterwalder/Pigneur 2010

• Customization
and activities • Design How does your offer
E.g. • Convenience/Usabilit reach the customer?
• Physical y E.g.
• Intellectual (Brands, • Risk reduction • Own stores
Patents, Copyright) • Brand/Status • Web sales
• Human • Partner stores
• Financial • Wholesaler

Which are the main costs?
• Personnel
• Administration
• Communication
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For which values do your customers really pay?
E.g.
• Material / Engines • Asset sale • Licensing / Leasing / Lending
• Rent • Usage fee (e.g. phone) • Advertising
• Overhead • Subscription fee • Brokerage fee
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 Elements of Business Models (1/9)

Customer Segments

All individuals and organisations that you are

creating value for (users and paying customers)
• Customers are the heart of any business model
• Without (paying) customers, no company can
survive
• Customers will only be willing to pay if their
needs are met
• Who are they?
• What problem are they trying to solve?
• What needs are they trying to satisfy?

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 Elements of Business Models (1/9)

Customer Segmentation

Group customers into different segments, in case

they present common needs, common
behaviours or other attributes
• Their needs justify different offers
• They are reached through different channels
• They require different relationships
• They have different profitabilities
• They are willing to pay for different aspects of
the offer

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 Elements of Business Models (1/9)

Customer Segmentation: Consumer Markets

Consumer markets (individuals, households) can be for example segmented on

the following characteristics:

Geographic: region (country, state, city or neighbourhood…), population

density urban, peri-urban, rural, climate conditions…

Demographic: gender, age, social status, income, occupation, education,

religion…

Psychographic: activities, interests, opinion, attitudes, values…

Behavioural: benefits sought, user status, readiness to buy…

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 Elements of Business Models (1/9)

Customer Segmentation: Industrial Markets

To segment industrial markets (organisations such as NGOS, international

organisations, service providers, manufacturers, resellers, governments and
institutions), many consumer market’s variables apply, for instance:

Location: distance, regions covered

Company type: size, type of industry, decision-making unit…

Behavioural: purchase criteria, user status, purchase procedure (sealed

bids, tenders, proposals, negotiation… etc.), decision-
making process…

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 Elements of Business Models (2/9)

Value Propositions

Products and services creating value for specific

customer segment
• A value proposition for each costumer segment
• Your Uniqueness (USP!)
• How are you different (and better) from your
competitors

• How do you help your customer solving his/her

problem?
• How do you satisfy his/her need?
• Why you? And not the competitor?
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Starting with the Business Model Canvas

1. Who are your customers?

2. What is the value proposition you are creating
for them?

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 Elements of Business Models (3/9)

Channels

Through which touch points you are interacting

with the customers and delivering value.
• It is the company’s interface with the customer.
• It should describe how you
• contact the customer
• communicate with them
• How they will access your product/service
• How do you contact the different segments?
• How do you deliver the value?
• How do you promote the value?
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 Elements of Business Models (4/9)

Customer Relationships

Type of relationship you are establishing with

each customer segment.
• The relationship you define in your BM deeply
influences the overall customer experience.
• It defines how do you do acquisition.
• It defines how you retain the customer.
• E.g. personal assistance vs. dedicated personal
assistance (or impersonal assistance).
• What type of relationship does each segment
expect us to establish and maintain with them?
• How costly would these be?
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 Elements of Business Models (5/9)

Revenue Streams

The way how the company makes income from

each customer segment.
• Describes the pricing mechanism through which
the business model is capturing value.
• Indicates how profitable is each customer
segment
• E.g. asset sale, usage fee, subscription fee,
• renting,
For whatadvertising, etc.
value our customer segments are
really willing to pay?
• How much each segment would pay?
• How would they like to pay?
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 Elements of Business Models (6/9)

Key Resources

• Describes the resources needed to create,

deliver and capture value
• It shows which assets are indispensable in your
business models.
• They could be physical, intellectual, human,
financial, etc.
• What key resources do your value propositions
require?
• Also think about the resources needed by the
distribution channels, customer relationship and
revenue streams you have set in your BM.
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 Elements of Business Models (7/9)

Key Activities

• The most important activities in executing a

company’s value proposition.
• It shows which activities you need to perform
well.
• Think about the process involved in delivering
value to your customer, and list them all.
• What key activities do your value propositions
require?
• Also think about the activities needed by the
distribution channels, customer relationship and
revenue streams that you have set in your BM.
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 Elements of Business Models (8/9)

Key Partnerships

• Key organizations that can help you to optimise

your operations. They have something you
need, or perform something better than you.
• Worth cultivating!
Business Partners help you leverage your
business model, because you won’t be able to
• have all key resources, or
• perform all key activities
• Who are our key partners?
• What activities do they for us?
• What resources do they have that I need (and
don’t have)?
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 Elements of Business Models (9/9)

Cost Structure

• It describes how much it will cost implementing

your business model.

• It includes: personnel, machinery, equipment,

materials, communication, rent, overheads.

• What are the fixed costs involved?

• What are the variable costs involved?
• Do we follow a cost-driven model or better a
value-driven model?
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 Business model canvas - cheat sheet

Who are your key What are YOU mainly Which value do you How do you For whom do you
partners which you doing? convey to the customer? communicate with your create value?
need for the creation of E.g. Why should the customers? Who are your most
our value propositions? • Production customer chose your E.g. important customers?
E.g. partners for: • Problem-solving/ offer? (Uniqueness) • Personal Is it a
• Optimization / consulting E.g. • Self-service • Mass market?
Economy of scales • Platform/Network • Newness • Automated service • Niche market?
• Risk reduction • Performance • Communities • Segmented market?
• Acquisition of • Price • Multi-sided market?
particular resources

Source: Osterwalder/Pigneur 2010

• Customization
and activities • Design How does your offer
E.g. • Convenience/Usabilit reach the customer?
• Physical y E.g.
• Intellectual (Brands, • Risk reduction • Own stores
Patents, Copyright) • Brand/Status • Web sales
• Human • Partner stores
• Financial • Wholesaler

Which are the main costs?
• Personnel
• Administration
• Communication
05/25/2021
For which values do your customers really pay?
E.g.
• Material / Engines • Asset sale • Licensing / Leasing / Lending
• Rent • Usage fee (e.g. phone) • Advertising
• Overhead • Subscription fee • Brokerage fee
Business Model Workshop - www.cewas.org 32
Your business model canvas

Source: Osterwalder/Pigneur 2010

22.02.13 Business Model Generation in SSWM 33