Week 1: Business Model Canvas

Question 1

What is Business Model Canvas purpose?

Answer 1

Offers a template for mapping how businesses create and capture value through integrated activity system.

!!!Value must be created, divided and captured!!!

Question 2

What is a business model?

Answer 2

*Offers a firm-centric, yet boundary spanning, HOLISTIC VIEW of how a firm conducts its business

• Articulates the logic through which the firm CREATES VALUE by exploiting business opportunities
• Describes the interlinked ACTIVITIES in which the firm excels
• Identifies the UNIT OF BUSINESS, or the individual transaction through which value is delivered to the customer
• Reveals how the firm solves the VALUE CAPTURE PROBLEM.

Question 3

Top half of business model canvas

Answer 3

Related to VALUE CREATION
*what kind of partners you need to put together a quality product?
*key activities in which firm is engaged?
*Key resources firm owns
*Contains value proposition (important!)
*Customers & customer relationships (connected with value proposition)
*Channels and intermediaries.

Question 4

Bottom half of business model canvas

Answer 4

related to CAPTURING VALUE
financial factors:
*costs
*revenues

Question 5

Name elements of business model canvas

Answer 5

1. Customer segments
   – Which set of customers do I want to serve to create value for?
2. Value proposition
   – Which products and services will I provide to create value for my targeted customers?
3. Channels
   – Which touching points do I seek to deliver my products and services to my customers?
4. Customer relationships
   – What type of relationship – transactional or durable – do I seek with my customers?
5. Revenue streams
   – Which pricing strategy will I use to capture the value I have created for my customers?
6. Key resources
   – Which assets form the indispensable infrastructure for my business?
7. Key activities
   – Which activities do I need to execute excellently to maximize customer value?
8. Key partners
   – Given that I do not want to own all the assets I use, who do I need to team up with?
9. Cost structure
   – Which fixed costs are associated with the assets I own, and which variable costs with the activities I perform?