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Week 16 Designing business models - Coggle Diagram
Week 16 Designing business models
Business model functions
Understand and share:
analyse
manage
prospect
patenting
The Business Model Canvas areas
the customers area has three components
customer segments
different ‘segments - high or low wealth
customer relationships
Osterwalder et al. (2010, p. 29) distinguish six types of customer relationships:
Personal assistance - phone, email
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation
channels.
Channels are interfaces between the company and its customers: Osterwalder et al. (2010, p. 27) defines five types of channels for doing so:
Sales force
Web sales
Own stores
Partner stores
Wholesaler
combining channels at diff stages can be useful
the infrastructure area
recalls most of the elements you covered in Weeks 9 and 10 about resources and capabilities.
Key resources
Key activities
Key partners
the financial viability area
Revenue streams
dependent on pricing mechanisms. Osterwalder et al. (2010, p. 33) identify two main mechanisms:
Fixed pricing
Dynamic pricing
Cost structure
identifies the costs underlying the business model.
What costs are generated by the resources employed?
What costs are originated by the activities of the business model?
If the business model focuses on efficiency, the cost structure is COST-DRIVEN and recalls the studies on cost leadership strategy in Week 13 Section 6.
If the business model is oriented towards providing superior value to the customer, then the cost structure can be defined as VALUE-DRIVEN and the logics behind it are the ones associated with the differentiation strategy described in Week 14 Section 1.3.
Value Proposition Canvas
The Value Proposition Canvas is embedded in the Business Model Canvas and
explains how value is created for the customer.
value proposition is defined as:
"the bundle of products and services that create value for a specific Customer Segment."
Value proposition canvas
Value proposition
Products and services:
these are what the organisation offers
Pain relievers
describe how products and service reduce customers pains outlined in the Customer Profile
Gain creators:
describe how the products and services provided can create benefits for the customers
Customers
Customer (Segment) Profile. It is made up of the following components:
Customer jobs
what the customers want to achieve and the needs they are trying to satisfy.
Customer pains
what makes it difficult for customers to get the customer jobs done
Customer gains
the positive outcomes connected to the execution of customer jobs
Gains and pains useful for representing the value creation of the customer.
Questions
"1.Is the value proposition providing essential customer gains?
2.Is the value proposition reducing extreme customer pains?"