Business Model Generation

Business model generation Business model design document

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Alex Osterwalder, Yves Pigneur Shoeisha 2012-02-10

See details on Amazon.co.jp

Introducing the book.

There are various marketing frameworks, such as 3C4P analysis, but this book proposes a framework as a common language for business models.

I personally want to actively incorporate frameworks like this, so this was very helpful. And above all, the design of the book is wonderful.

I would like you to check out the contents search on Amazon or the Shoeisha page below. It was a book that was visually appealing with a variety of illustrations, like the popular one-column web design or a landing page.

http://www.seshop.com/1satsu/businessmodelgeneration/

What is Business Model Generation?

[Definition] Business model
A business model is a logical description of how value is created and delivered to customers.

Over the course of nine years, 470 co-authors from 45 countries spent a total of 4,000 hours analyzing various prototypes using 28,459 Post-it notes to systematize the methodology of business model innovation, which provides a deeper understanding of customers, sales channels, partners, revenue streams, cost structures, and more.

Specifically, we break down the business model into nine elements and design it using a tool called the Business Model Canvas to enable visual and objective analysis.

Business Model Canvas

9 components of the business model canvas

1. Customer Segment (CS)Define the customer groups that your company wants to serve
   • For whom do we create value?
   • Who are your most important customers?
2. Value Proposition (VP)Describe products and services that create value for specific customer segments
   • What value do you provide to customers?
   • What problems can we help you solve?
   • What customer needs will it satisfy?
   • What products and services will you offer to your customer segments?
3. Channel (CH)Describe how you will communicate with and deliver value to your customer segments
   • Through which channels do you want to reach your customer segments?
   • How are you reaching them now?
   • How can channels be integrated?
   • Which channels are working and which are the most cost-effective?
   • How do you integrate channels into your customers' lives?
4. Customer Relationships (CR)Describes the type of relationship a company has with a particular customer segment
   • What types of relationships do your customer segments want to build and maintain?
   • What relationships have you already built? How much will it cost?
   • How does it integrate with other elements of your business model?
5. Revenue Stream (RS)Represents the cash flow a company generates from its customer segments
   • What value are customers willing to pay for?
   • What are you currently paying for? How are you paying for it?
   • How do they want to pay? How much does each revenue contribute to their overall revenue?
6. Resources (KR)Describe the assets required to execute the business model
   • What resources do you need to deliver your value proposition?
   • What about distribution channels, customer relationships and revenue streams?
7. Main Activities (KA)Describes the key activities that a company must perform to execute its business model
   • What are the key activities required to deliver the value proposition?
   • What are your distribution channels? What are your customer relationships? What are your revenue streams?
8. Partner (KP)Describes the network of suppliers and partners that make up the business model
   • Who are your partners? Who are your main suppliers?
   • What resources do you get from your partners?
   • What key activities are the partners performing?
9. Cost Structure (CS)Describe all costs incurred in operating your business model
   • What are the most significant costs inherent in your business model?
   • Which resource is the most expensive?
   • Which key activities are most expensive?

How to use the Business Model Canvas

• Visualize current and future business models
• Visually show the overall picture of the project, roles, and interrelationships
• Translating into business processes
• It reminds your team to think holistically about the business and stop focusing on the details.
• Share a common language and framework with your colleagues

Business Model Canvas Template

I created this simply using a Google Drive spreadsheet, so I'd like to share it with you.

The second page of the sheet contains the Apple iTunes business model for reference. Please make use of it.

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