Institute of

Accounts
Business and
Finance

Adopted from CEU and University of Batangas

during our training on Business Analytics

COURSE CODE: COURSE DESCRIPTION: LECTURE No.:

A business model describes the
manner by which an enterprise
creates and delivers value to
customers, entices customers to
pay for value and converts
those payments to profit.

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 Customer Customer
Channels
Segments Relationships

Value Key
Key Activities
Proposition Resources

Cost Revenue
Key Partners
Structure Streams

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 Different groups of people or organizations
an enterprise aims to reach and serve

Customer
Questions
Segments
* For whom are we * Mass market
creating value?
* Niche market
* Who are our most * Segmented
important customers?
* Diversified
* Multi-sided

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 The types of relationships a company establishes
with specific customer segments
Questions Categories of
* What type of relationship does Relationships
each of our customer segment * Personal assistance
expect us to establish and * Dedicated personal
maintain with them? assistance
* Which ones have we * Self-service
established?
* Automated services
* How costly are they?
* Communities
* How are they integrated with
the rest of our business model? * Co-creation

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 How do we communicate with and reach our customer
segments to deliver a value proposition?
Questions
Channel Phases
* Through which channels do
our customer segments want 1. Awareness
to be reached? 2. Evaluation
* How are we reaching them 3. Purchase
now?
4. Delivery
* Which ones work best? 5. After sales
* Which ones are the most Channel Types
efficient?
* How are we integrating them 1. Own or Partner
with customer routines? 2. Direct or Indirect

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The bundle of products and services that create value for a specific Customer
Segment
Questions Elements to
* What value do we deliver to Adding Value
the customer? * Newness
* Which one of our customer’s * Performance
problems are we helping to
solve? * Customization
* Which customer needs are we * Getting the job done
satisfying? * Design
* What bundles of products and * Brand/Status
services are we offering to * Price
each customer segment?
* Accessibility

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 The most important things a company must
do to make its business model work

Questions
Categories
* What Key Activities
do our value *Production
propositions require? *Problem solving
* Our Channels? *Platform/Network
* Customer
Relationships?
* Revenue Streams?

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 The most important assets required to make a
business model work
Questions
Categories
* What key resources do
our value propositions *Physical
require?
*Intellectual
* What do our channels
require? *Human
* Our customer *Financial
relationships?
* Our revenue streams?

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 The network of suppliers and partners that
make the business model work
Questions Types of Partnerships
* Who are our key partners? *Strategic alliances
* Who are our key suppliers? between non-
* Which key resources are competitors
we acquiring from
partners? *Coop-etition
* Which key activities do
partners perform?
*Joint ventures
*Buyer-supplier

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 All costs incurred to operate a
business model
Questions
* What are the most Classes of
important costs Structure
inherent in our * Cost-driven
business model?
* Value-driven
* Which key resources
are most expensive?
* Which key activities
are most expensive?

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 The cash a company generates from each
customer segment (one-time or recurring)

Questions Generating Revenue

* What value are our customers * Asset sale
really willing to pay?
* Usage fee
* For what do they currently pay?
* How are they currently paying? * Subscription fees
* How do they prefer to pay? * Lending/Renting/Leasing
* How much does each revenue * Licensing
stream contribute to overall * Brokerage
revenues?
* Advertising

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The business model canvas was
initially proposed by Alexander
Osterwalder based on his early
work on Business Model
Ontology.

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1. Assemble in teams.
2. Identify your company through
drawing of lots.
3. Create a business model canvas.
4. Present your canvas.

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