REVENUE SOURCES REVENUE SOURCES COST STRUCTURE COST STRUCTURE VALUE PROPOSITION VALUE PROPOSITION CUSTOMER SEGMENTS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP CHANNELS CHANNELS KEY ACTIVITIES KEY ACTIVITIES KEY RESOURCES KEY RESOURCES KEY PARTNERSHIPS KEY PARTNERSHIPS Who is the main focus of your value proposition? Who are you creating value for? Who are your most important customers? What are they like? What do they need? What do they enjoy? What are your different types of customers? What is the customer market like? Is your company targeting a small niche community or a mass market? Mass Market Niche Market Demographic Behavioural Diversified High-Net Worth KEY QUESTIONS: EXAMPLES: How does the business interact with customers and how does this differ between customer segments? How much support do we provide? How frequently do we communicate with customers? Personal Assistance or Self-Service Automated Services Communities/Co-creation KEY QUESTIONS: EXAMPLES: AWARENESS - how do we raise brand awareness? Word of Mouth, Social Media EVALUATION- how do we help customers evaluate our Value Prop? PURCHASE - how do we allow customers to purchase specific products and services? Web, Brick & Mortar DELIVERY - how do we deliver a Value Prop to customers? Delivered/Catered AFTER SALES - how do we provide post- purchase customer support? Call center, Return policy, Customer assistance Value propositions are the most important element of the BMC. It determines the fundamental offering the company is trying to give its customers. Is it the primary driver of our business operations? What exactly is our company trying to give to customers? What problem is our company trying to solve and what needs are we satisfying? How do we offer something different that satisfies the demands of our customer segments? Newness Performance Customization “Getting the Job Done” Design Brand/ Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability KEY QUESTIONS: CHARACTERISTICS: Value Propositions require? Our Distribution Channels require? Customer Relationships require? Revenue streams require? KEY QUESTIONS: What Key Activities does our: Do you need to streamline to keep costs and prices low? CATEGORIES: Production, Marketing, Procurement, Process Optimization What assets do we need to operate & deliver our value proposition? What resources does our distribution channels & revenue streams need? What resources are needed to maintain customer relationships & satisfaction? Do we require significant capital or human resources? KEY QUESTIONS: TYPES OF RESOURCES: Physical, Intellectual (patents, copyrights, data), Human, Financial Who are our Key Partners? Who are our key suppliers? What key resources does your company receive from these partners? What key activities are performed by these partners? What is your company’s motivation for working with these key partners? Is there something specific that only they can provide? Do they help lower costs? Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities KEY QUESTIONS: MOTIVATIONS FOR PARTNERSHIPS: For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? KEY QUESTIONS: TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing, Licensing, Advertising FIXED PRICING: List Price, Product feature dependent, Customer segment dependent, Volume dependent DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing), Value Driven (focused on value creation, premium value proposition). KEY QUESTIONS: IS YOUR BUSINESS MORE: