Business Models
Knowledge Transfer | Accelerating Innovation V. Nilsen
Business model is a buzzword that everybody
used (or overused) during the dotcom boom.
In fact, poorly thought out business models were
the downfall of many dotcoms.
However, the business model dates back to the
earliest days of business; it merely describes the
way in which a company makes money.
www.investopedia.com
Knowledge Transfer | Accelerating Innovation V. Nilsen
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structures Revenue Streams
Source: Business Model Generation, A. Osterwalder
Knowledge Transfer | Accelerating Innovation V. Nilsen
Value Proposition
What distinguish your business from the competitor?
What is the value you provide the customer?
• Newness
• Performance
• Customization
• "getting the job done”
• Design
• Brand/status
• Price
• Risk reduction
• Convenience/usability
Knowledge Transfer | Accelerating Innovation V. Nilsen
Value Proposition
Knowledge Transfer | Accelerating Innovation V. Nilsen
Customer Segments
Who are your main customers?
• Mass Market
• Niche
• Segments
• Multi-Sided
Knowledge Transfer | Accelerating Innovation V. Nilsen
Channels
How do you distribute the value proposition to
your customers?
• Online
• Retail Stores
• Partners
• App
Knowledge Transfer | Accelerating Innovation V. Nilsen
Customer Relationship
What is the relationship the business have with
its customers?
• Personal Assistance
• Dedicated Personal
Assistance
• Self Service
• Automated Services
• Communities
• Co-creation
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Activities
The most important activities in executing a
company's value proposition
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Resources
The resources that are necessary to create
value for the customer
• Human
• Financial
• Physical
• Intellectual
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partners
Which partners are necessary for making the
business work?
Knowledge Transfer | Accelerating Innovation V. Nilsen
Revenue Stream
How the company makes income
• Selling a product
• Usage Fee
• Subscription
• Renting/Leasing
• Licensing
• Brokerage Fees
• Advertising
Knowledge Transfer | Accelerating Innovation V. Nilsen
Cost Structure
What are the cost associated with running the
business and how does it scale with sales
• Fixed Costs
• Variable Costs
• Economies of Scale
• Economies of Scope
• Cost-Driven vs. Value-Driven
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structures Revenue Streams
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structures Revenue Streams
Knowledge Transfer | Accelerating Innovation V. Nilsen
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Content
Easy Online
Providers
access to
Content content People who
owners binge watch
when you tv shows
Key Resources want it Channels
Distribution Digital
platform platform
Cost Structures Revenue Streams
Royalties Salaries Bandwidth Subscription
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Payment Platform Cheap way Online
maintenance community
providers of getting
Customer
an unique Phone
Travel travel Travelers
support support
networks experience
Key Resources Channels
Platform Home
Rent out owners
your extra
space Online
Brand
Cost Structures Revenue Streams
Platform
Insurance % Fee
costs
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Marketing
People
Platform Online living/workin
development support g abroad
Exchange
Payment money from
Support
providers one currency
to another at Frequent
Key Resources Channels users of
better rates
exchange
Brand services
Trust Web platform
Platform
Cost Structures Revenue Streams
Platform % Fee
development
Support Insurances
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Maintaining
platform Online
Publishers Online and
Logistics Platform
phone
support
Price Mass
Suppliers and Marketing
manufacturers market
Key Resources Channels
Selection
Network of Warehouses
sellers Brand
Convenience/
Amazon.com
Platform Speed
Cost Structures Revenue Streams
Commission
Platform, Logistics, Marketing, Sales Subscription
on sales
Physical Storage,
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Platform
development and Connect with Online Internet Users
maintenance friends, share
content …
Advertising sales
Content and analytics
Advertisers and
Providers Reach a specific marketers
target group with
Key Resources your advertising
Channels
Users
Small businesses
Facebook adds,
Brand Facebook pages
Platform
Cost Structures Revenue Streams
Bandwidth Sales
Add Revenue
Platform
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Production
Communities
Logistics Price Individuals
Self-service
Suppliers Sales Simplicity
Key Resources Channels
Convenience
Appliance Brand Businesses
producers IKEA
Customization
Physical
Resources Web sales
Cost Structures Revenue Streams
Marketing Product
Production
and sales sales
Knowledge Transfer | Accelerating Innovation V. Nilsen
Basic Models
• Brokerage • Pay as you go
• Bundling • Razor/blades
• Crowdsourcing • Product to service
• Disintermediation • Standardization
• Freemium • Subscription
• Leasing • Negative operating
• Low-touch cycle
Knowledge Transfer | Accelerating Innovation V. Nilsen
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Clean Shave
Marketing Built-in
R&D Simple “lock-in”
Logistics
Manufacturers People who
Retailers shave
Key Resources Channels
Razor Handle
Brand Retail
Patents Blades
Cost Structures Revenue Streams
Razor Handle
Marketing
Manufacturing
Logistics, R&D Blades
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structures Revenue Streams
Knowledge Transfer | Accelerating Innovation V. Nilsen
Knowledge Transfer | Accelerating Innovation V. Nilsen
Building your own
business models
Knowledge Transfer | Accelerating Innovation V. Nilsen
Key Partnership Key Activities Value Propositions Customer Customer Segments
Relationships
Key Resources Channels
Cost Structures Revenue Streams
Knowledge Transfer | Accelerating Innovation V. Nilsen
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Knowledge Transfer | Accelerating Innovation V. Nilsen
