Osterwalder explaining the Business Model Canvas (YouTube Video)

Adapted from: 12:35 to 18:15 of: https://youtu.be/RzkdJiax6Tw

The value proposition is the HEART of the canvas (lies at the center)

Breaking the complex down to key components

Business LOGIC (of value creation), the flow through a sequence of steps

Common lingo

Tangibility for a fuzzy concept

Visualization through an overview

RIGHT-SIDE (Which value, for who and how to delivering and capture value)

1. Customer segments

TARGETING

Which customers?

Readers vs advertisers of newspapers

Content-based businesses

2. Value propositions

OFFERING

Set of product and services to get the job done

Different customers, require different value

3. Channels

REACHED

Tailored to each customer segment

Physical vs. digital channel

Direct vs. indirect channels

B2C, B2B, C2C etc.

4. Customer relationships-

PERSONALIZATION

High-touch vs Low-touch (e.g. John Naisbitt)

People-based (customized)

Machine-based or systems-based (automated)

Get/keep/grow customers (Steve Blank)

5. Revenue streams

REVENUE MODEL

What are they really willing to pay for?

Subscription mechanisms

Through which pricing mechanisms (e.g. auction or selling etc.)

LEFT-SIDE (How are we going to do it? What do we need to create value)

6. Key resources

ESSENTIAL resources to leverage on

Crucial for success

To leverage on

Factories, intellectual properties, server farms/data centers (Google and the “Internet giants”) etc.

7. Key activities

EXCEL in the key activities

Typically a functional activity

Marketing & sales, R&D

Managing servers (e.g. Amazon/Google)

8. Key partners

ECOSYSTEM of partners and stakeholders that can be leveraged upon

Social apps/gaming socialization

YouTubers/social media influencers’ ability to build million-dollar businesses (on YouTube or Facebook etc.)

9. Cost structure

CORE expenses

That can be inferred by review of steps 6-8

Truly the “bottom line”

The last step, in the logic of value creation