Business model part 1 1

• 1. Designing a Business Model Master of Creative Technology 2014

2. Business Model A business model describes the rational of how an organization creates, delivers and captures value A business model is nothing else than a representation of how an organization makes (or intends to make) money or add value. 3. Designing a Business Model It is a shared language for describing, visualizing, assessing and changing business models. 4. Designing a Business Model 9 Building Blocks 5. Designing a Business Model 6. Customer Segment The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve 7. Customer Segment For whom we are creating value? Who are our most important customers? 8. Customer Segment Mass Market Niche Segmented Market Diversified Market 9. Value Propositions The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment 10. Value Propositions What value do we deliver to the customer? Which one of our customers problems are we helping to solve? Which customers needs are we satisfying? 11. Value Propositions Newness Performances Customization Design Brand/ Status Prices Cost or Risk reduction Accessibility Convenience / usability 12. Channels The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition 13. Channels Through which channels do our Customer Segments want to be reached? How are we reaching them? Which one works best? Cost, reach, customers routines 14. Customer Relationship The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments 15. Customer Relationship What type of relationship does each of our customer expect us to establish and maintain with them? Which one works best? Cost, business resources, 16. Customer Relationship Personal Assistance Dedicated Personal assistance Automated Services Communities Co-creation 17. Revenue Streams The Revenue Streams Building Block represents the cash a company generates from each Customer Segment 18. Revenue Streams For what value our customers really willing to pay? For what they are currently paying, what they prefer to pay? 19. Revenue Streams Asset Sale Usage fee Subscription fee Lending/renting/leasing Licensing Brokerage fee Advertising 20. Key Resources The Key Resources Building Block describes the most important assets required to make a business model work 21. Key Resources What key resources does our propositions require? 22. Key Resources Physical Financial Intellectual Human 23. Key Activities The Key Activities Building Block describes the most important things a company must do to make its business model work 24. Key Activities Production Problem solving Network 25. Key Partners The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work 26. Key Partners What are our key partners? Who are our key suppliers? Resources we acquire, activities they perform 27. Cost Structure The Cost Structure describes all costs incurred to operate a business model 28. Cost Structure Fixed cost Variable cost Cost drive Value drive 29. Epicenter of Business Model Resource Driven- Amazon Offer Drive Telcos Customer Driven Student offer Finance Driven Reduce cost or increase revenue Multiple Epicenter Driven 30. Most Innovative Business Model 31. AUT Venture Fund http://www.aut.ac.nz/study-at-aut/study- areas/business/student-opportunities/get- involved/aut-venture-fund