Business Model Canvas

Definition
BMC was first proposed by Alexander Osterwalder, a Swiss
entrepreneur, and consultant.

“A business model canvas is a visual representation of a

business model, highlighting all key strategic factors. In
other words, it is a complete overview of the company’s
workings, customers, revenue streams and more.”
 Table of Contents

BMC BMC
01 Tool description & 02 guidelines for
Worksheet consultants

BMC
03 Google, Inc case 04 Conclusion
study
What Is a Business Model
Canvas?
A template to develop or document business
models. Canvas is one of the best ways to get an
initial overview and assess directions as early as
possible

A business model canvas is an effective way to

bring all the elements of your strategy together.

Helps bring in all departments in your company

and allows for a broad overview of the intended
business model.

Whether its propose updates to an existing

strategy or developing an entirely new company.
 Business models are seen to bridge the gap between
strategy (the positioning, objectives and goals of the
company) and business processes (involving the
Osterwalder and
understanding and implementation of strategic
Pigneur, 2002, p.77
information).
There often exists “quite a substantial gap between
these two worlds” .
 Why Use the Business Model Canvas?
Enables companies to Defines how each
visualize and analyze section interacts with
their strategy the others.

Provides the central,

common source of Used to plan, assess or
knowledge execute new models
Key Key Value Customer Customer
Partners Activities Proportions Relationship
Segments
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring for them?
propositions require?
Business Model Canvas
What key activities do our value

Our distribution channels?

Customer relationships?
What value do we deliver to the
customer?
Which one of our customer’s
problems are we helping to solve?
What type of relationship does
each of our customer segments
expect us to establish and
maintain with them?
For whom are we creating value?
Who are our most important
customers?

Revenue streams? What bundles of products and Which ones have we

services are we offering to each established?
customer segment?
Which customer needs are we
satisfying?

Key Resources Channels

What key resources do our value Through which channels do our
propositions require? 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?
 Key Partners

Key
Partners

• What is the network of • Economies of scale (sharing

suppliers and others resources and infrastructure)?
that makes the
• Reduction of risk?
business work?
• Acquisition of resources, skills or
• What is our goal in
working with them? activities?
 Key Activities

Key
Activities
- Initial investment, such as finding a
development company.
- Marketing and advertising to generate - What key activities do
that initial awareness. our value
- the impact each has on the overall propositions require?
business, to understand the absolute - Our distribution channels?
essentials and recommended extras. - Customer relationships?
- Revenue streams?
 Key Resources

Key • Human resources

• Financial
Resources • Physical
• Intellectual property
What key resources do our
value propositions require?
 Value Proportions

Value
Proportions

- Quantitative : cheaper or faster - What value do we deliver

to the customer?
- Qualitative: Value or experience - Which one of our
customer’s problems are we
helping to solve?
 Customer Relationship
Customer
Relationship
What type of relationship
does each of our customer
segments expect us to
establish and maintain with
them?
- What is your relationship with each customer.
- How you kept these initial customers and,
ultimately, how the business will grow its
audience.
- Providing personal assistance .
- Offering automated services
- Self-services
- Or in other means.
 Distribution

Channels

• Directly through our own

How are we reaching
people or Indirectly through them according to each
partners? customer segment?
Which ones work best?
• Are we Providing personal
assistance or Offering an
automated service?
 Customer Segments

Customer
Segments
• Mass market
• Niche market
For whom are we creating
value? • Segmented market
Who are our most • Diversified market
important customers?
• Multi-sided markets
 Cost Structure

Cost
Structure
• Fixed? What are the most
• Variable? important costs inherent in
our business model?
Which key resources are
the most expensive?
Which key activities are
the most expensive?
 Revenue Streams

Revenue
Streams
For what value are our
• One-time payments (transaction)?
customers really willing to pay? • Recurring payments (ongoing
For what do they currently pay? payments such as subscriptions)?
How are they currently paying?
How would they prefer to pay?
How much does each revenue
stream contribute to overall
revenues?

Impact
- Social benefits
- Environmental benefits
- Economic benefits
Impact
• How will communities as a whole be better off
(e.g. occupational safety, female consumer
focus)?
• How will the environment benefit (e.g.
biodiversity, decreased health risks)?
• How will those involved benefit economically
(e.g. greater income through employment,
savings, market increase)?
 Guidelines for consultants

1- PREPARE EXAMPLES IN ADVANCE.

2- PROVIDE EXAMPLES ONLY AFTER PARTICIPANTS HAVE GIVEN THEIR
INPUT.
3- ENCOURAGE PARTICIPANTS TO SET PRIORITIES.
4- OTHER TOOLS FROM THE TOOLKIT CAN BE USED TO FILL IN THE
SECTIONS.
 Setting and approach

TIME MATERIALS

TEAM
DOCUMENTATION
Business Model Canvas:
Google, Inc case study
 Profile of Google

 Google Inc is a market leader in global technology emphasizing

mainly Advertising.
 Search engine to allow users to find any website or document on
the web based on keywords or exact searches.
 Google provides free services for their users.
 The co. possesses a healthy revenue generation.
Graph
 Google’s business model

Infrastructure Key Partners Offering Value Proposition

Key Activities
Key Resources

Customers Cost Structure

Customer Segment Finances Revenue Streams
Customer Relationships
Channels
https://fourweekmba.com/google-business-model-canvas/
Google’s main customers’ interaction triangle
 Business Model Ontology Canvas

https://www.researchgate.net/figure/Business-Model-Ontology-Canvas-with-the-nine-building-blocks-grouped-into-
perspectives_fig8_221105922
 Google BMC evaluation

SWOT Confrontation
analysis Matrix

Google Value Chain Model

Conclusion
• Google's strategy is sophisticated and has delivered profitable
results due to providing improved advertising services to multiple
client segments.
• The BMC as an internal tool appears to be lacking strategy in
terms of competition and other harms outside of the company .
• Google’s core strengths (data mining, product integration) may
turn to make the firm more unpopular as people despise
monopolies.
Conclusion, contd.,

This analysis implies that google should continue:

• Its position as a market leader,
• Develop a new source of income,
• Cancel unprofitable and unpopular products,
• Reduce legal expenses,
• Continue its acquisition strategy
• And invest heavily to retain and obtain human capital.
Thanks
Do you have any questions?