10/22/2015

Lesson 1

Business models

Amali Wijekoon
Dept. of MOT

Learning Outcomes
At the end of this lesson, you’ll be able to:
• describe the elements of a business canvas
• design the canvas for your business idea.

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What is a business model?

• A business model describes how an entity
organizes itself to create value and derive
revenue
– Alex Osterwalder
• Use a common platform to describe the
business model

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The common platform

Organization Offer Customer

Economics

• The business model platform starts with customers

• Next comes the offer made to customers
• Following by the organization that makes the offer
possible
• Finally the costs and revenues associated with it
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Nine building blocks

1. What are the customer segments your business model

serves?
2. What is the offer you have for each segment?
3. What characterizes the relationship with the customer?
4. How will you describe your offer to this customer type?
5. How will you charge for this offer?
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Nine building blocks cont’d

6. What are the key activities you will perform?

7. What activities will you give to partners to perform as
they can do it better than you?
8. What resources do you need to perform the activities?
9. How do your resources and partners drive costs?
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The business model canvas of Alex

Osterwalder

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Business model canvas for Skype

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Thank You

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