What is a business canvas model? A business model describes the foundation of how an organization creates, delivers, and captures value. In this document we will be discussing all aspects of this model, namely Key Partnerships, Key Activities, Key Resources, Value Propositions, Customer Relationsh...
IT – Management
Reading 1 – Painting the Business Canvas
The Business Model Canvas:
Key Customer
Activities Relationships
Key Customer
Value Propositions
Partnerships Segments
Key
Channels
Resources
Cost Structure Revenue Streams
A business model describes the foundation of how an organization creates, delivers, and
captures value.
Why does a business exist?
- To satisfy the customer is the mission and purpose of every business.
- Businesses exist since it is neither effective nor efficient for customers to do
everything themselves.
- Core reason: Delivering value to customers.
Non Profit business
- They do something which someone deems valuable and thus are willing to provide
money for them to provide that value.
, Value Proposition
What a customer perceives as valuable depends on the situation.
Value can be delivered as a product or a service or both.
Value proposition can change over time.
Value differs from individual to individual.
How to communicate value proposition to current and potential customers:
- Value proposition described from 3 different prospective:
- All benefits
o Require no knowledge of customer, only product.
o Risk of stating benefits not beneficial to customers.
- Favourable points of difference
o Require no knowledge of customer, only competitors’ products.
o Risk of presuming value, to be of little or no importance to customers.
- Resonating focus
o Answers customers question:
What is most worthwhile for our company to keep in mind about the
offering?
o Requires knowledge of your own and competitors offerings and an
understanding of customer’s perspective of value.
Examples of how customers perceive value:
- Newness, there is no comparable offer.
- Increased performance.
- Customization.
- Getting the job done.
- Design.
- Brand status.
- Price
- Cost reduction.
- Risk reduction.
- Accessibility.
- Convenience usability.
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