Business Model Generation Written by Alexander Osterwalder and
Business Model Generation Written by Alexander Osterwalder and Yves Pigneur 2010 1 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Table of content 1. 2. 3. 4. 5. 6. 7. 2 Canvas Patterns Design Strategy Process Outlook Afterword Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Canvas 1. 2. 3. 3 Definition of a business model The 9 building blocks The business model canvas template Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Business Model 2. Elements of a Business Model A business model describes the rationale of how an organization creates, delivers and captures value Key activities Customer Segments Channel Key resources Customer Relationship Revenue Stream Cost structure Value Proposition Key partners 4 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
CS. Customer segment Different group of people or organizations an enterprise aims to reach and serve Segments defined by: Dominant forms: § Customer needs § Mass market (e. g. Wal§ Reach Mart) § Relationships § Niche market (e. g. Apple) § Profitability § Segmented (e. g. Microsoft § Willingness to pay Home/ Office/ Enterprise) § Diversified (e. g. Amazon Cloud) § Multi-sided platforms (e. g. e. Bay) 5 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
VP. Value Propositions Bundle of products and services that create value for a specific customer segment Ways of value creation: § Newness § Performance § Customization § Getting the job done § Design § Brand/ status § Price § Cost reduction (on usage) § Risk reduction § Accessibility § 6 Convenience/ Businessusability Model Generation (Osterwalder and Pigneur, 11/6/2020 2010)
CH. Channels How company communicates with and reaches its customer segments to deliver value proposition Channel phases: § Awareness Own Partner § Evaluation Direct Indirect § Purchase § Delivery Sales Web Own Partne Whole § After sales force sales stores r salers stores 7 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
CR. Customer Relationships Type of relationship a company establishes with specific customer segments Nature of customer relationships: § Personal assistance (e. g. call centers) § Dedicated personal assistance (e. g. private banking HNIs) § Self-service (e. g. online banking) § Automated services (e. g. customer rating/ review) § Communities (e. g. Patients. Like. Me. com ) § Co-creation (e. g. You. Tube. com) 8 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
R$. Revenue Stream Cash a company generates from each customer segment (transaction revenue or recurring revenue) Revenue models: Pricing mechanisms § Asset sales (e. g. Fixed menu pricing Dynamic pricing automobiles) List price Negotiation § Usage fee (e. g. Product feature Yield management telecom) dependent (e. g. airline seats) § Subscription fee (e. g. Customer segment Real-time-markets gym) dependent Auctions § Lending/ renting/ Volume dependent leasing (e. g. car rental) § Licensing (e. g. patent royalties) § Brokerage fee (e. g. credit cards) § Advertising (e. g. media 9 Business Model Generation (Osterwalder and Pigneur, 11/6/2020 industry) 2010)
KR. Key Resources The most important assets required to make a business model work Categories of resources include: § Physical (e. g. facilities, buildings, machines, systems, networks) § Intellectual (e. g. brands, proprietary knowledge, patents and copyrights, partnerships and customer databases) § Human (e. g. knowledge intensive and creative industries) § Financial (e. g. cash, lines of credit, stock options) 10 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
KA. Key Activities The most important things a company must do to make its business model work Key business activities could include: § Production § Problem solving (e. g. service/ utility industries) § Platform/ network (e. g. matchmaking platforms, software, etc) 11 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
KP. Key Partnerships Network of partners or suppliers that make the business model work Types of partnerships could be: General motives are: § Strategic alliance between § Optimization and non-competitors economies of scale § Coopetition, as alliances § Reduce risk and between competitors uncertainty (e. g. Blu-ray) § Joint ventures for developing § Acquisition of particular new products resources and activities § Buyer- supplier relationships to assure reliance supplies 12 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
C$. Cost Structure Cost incurred in operating a business model Dominant cost structures Characteristics of cost § Cost driven (e. g. low-price structure: value proposition, automation, § Fixed costs outsourcing) § Variable costs § Value driven (e. g. premium § Economies of scale value creation, and high § Economies of scope degree of personalization) 13 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
3. Business model canvas template Key Partners Key Activities Key Resources Cost Structure 14 Value Proposition Customer Relation Customer Segments Channels Revenue Streams Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Apple i. Pod/ i. Tunes business Model Key Partners ü Record companies ü OEMs Key Activities ü Hardware design ü Marketing Key Resources ü People ü Apple brand ü i. Pod hardware ü i. Tunes software ü Content and agreement Cost Structure ü People ü Manufacturing ü Marketing and sales 15 Value Customer Proposition Relation ü Seamless ü Lovemark music ü Switching experienc cost e Customer Segments ü Mass market Channels ü Retail stores ü Apple stores ü i. Tune stores ü Apple. com Revenue Streams ü i. Tunes stores ü Large hardware revenue ü Some music revenue Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
2. Patterns 1. 2. 3. 4. 5. 16 Unbundling business models The long tail Multi-sided platforms Free as a business model Open business models Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Unbundling business models Product Innovation Economics Early market entry enables charging premium prices and acquiring large market share; speed is key Customer Relationship Management High cost of customer acquisition makes it imperative to gain wallet share; economics of scope are key Battle for scope; rapid Competition Battle for talent; low barriers to entry; many consolidation; a few small players thrive big players dominate Culture 17 Employee entered; coddling the create stars Infrastructure Management High fixed costs make large volumes essential to achieve low unit costs; economics of sale are key Battle for scale; rapid consolidation; a few big players dominate Highly service oriented; customercomes-first mentality Cost focused; stresses standardization, predictability and Examples: mobile telecom industry, private banking industry efficiency Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
2. Long tail business models � Selling less of more; large number of niche products, each of which sells relatively infrequently � Moving away from only selling ‘hit’ products � Examples: Netflix, e. Bay, You. Tube, Facebook, Lulu. com (book publishing), Lego Factory � Drivers � Democratization of tools of production (e. g. movie making) � Democratization of distribution (on Internet) � Falling search cost of connecting supply with demand 18 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Long tail explained for music industry 19 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
3. Multi-sided platforms � Brings together two or more distinct but interdependent groups of customers. Product value by: � Facilitating interactions � Network effect (more leads to more) Same-side effect and other-side effect � One side generates revenue, and other side is subsidized � Examples: Visa, Google, e. Bay, Microsoft Windows SDK, Financial Times, Wii game console, Metro (free newspaper) 20 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Google business Model Key Partners Key Activities ü Platform management ü Managing services ü Expanding reach Key Resources ü Search platform Cost Structure ü Platform cost 21 Value Proposition ü Targeted ads ü Free search ü Monetizin g content Customer Relation Customer Segments ü Advertisers ü Web surfers ü Content owners Channels Revenue Streams ü Keyword auction ü Free Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
PSP/ Xbox versus Wii focus Key Partners Key Activities Key Resources Value Proposition ü High performa nce console ü Console audience Cost Structure Channels Key Activities Key Resources Cost Structure 22 Customer Segments ü Hardcore gamers ü Game developers Sony Play. Station Microsoft Xbox Revenue Streams ü Hardware sales at a loss ü Royalties from developers Key Partners Nintendo Wii Customer Relation Value Proposition ü Family console ü Access to console users ü Cheap game development cost Customer Relation Channels Customer Segments ü Casual gamers ü Game developers Revenue Streams ü Profitable hardware sales Royalties 11/6/2020 from developers Business Model Generation (Osterwalder andüPigneur, 2010)
4. ‘Free’ as a business model � Non-paying customers are financed by another part of the business model or by another customer segment � Examples: Metro (free paper), Flickr, Open Source, Skype, Google, Free Mobile Phones, Insurance � Some models are: � Advertising (one side of multi-sided platform pays) � Freemium (free basic offerings, and optional premium services) � Bait and hook (free or inexpensive trials) 23 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Red Hat Linux business model Key Partners Key Activities ü Linux Open ü Software Source support development services community ü Software visioning and testing Key Resources ü Red Hat (Linux) software Cost Structure ü Elements of a service company 24 Value Customer Proposition Relation Segments ü Free ü Self service ü Advertisers (Linux) and direct ü Web surfers open access to ü Content source engineers owners based software ü Continuous Channels upgraded, ü Redhat. co services m and ü Red Hat guaranteed global software branches Revenue Streams ü Professional subscription ü Free software Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Skype business model Key Partners ü Payment providers ü Distribution partners ü Telco partners Key Activities ü Software development Key Resources ü Software developers ü Software Cost Structure ü Software development ü Compliance management 25 Value Customer Proposition Relation Segments ü Free ü Mass ü Web users Internet customized globally and voice ü People who calling want to call ü Cheap calls phones Channels to phones ü Skype. com (Skype. Out) ü Headset partnership s Revenue Streams ü Skype. Out pre-paid or subscription ü Hardware sales Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Gillette: ‘Bait and hook’ business model Key Partners Key Activities Value ü Manufacturers ü Marketing Proposition ü Retailers ü R&D ü Razor ü Logistics handle ü Blades Key Resources ü Brand ü Patents (blocking) Cost Structure ü Marketing ü Manufacturing ü Logistics ü R&D 26 Customer Relation ü Built-in ‘lock-in’ Customer Segments ü Customers Channels ü Retail Revenue Streams ü One time hand purchase ü Frequent blade replacement Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
5. Open Business Models Principles of innovation Closer Open The smart people in our field work with We need to work with smart people us both inside and outside our company To profile from research and development, we must discover it, develop it, and ship it ourselves External R&D can create significant value; internal R&D is needed to claim some portion of that value In we conduct most of the best research in the industry, we will win. We don’t have to originate the research to benefit from it If we create the most or the best ideas in the industry, we will win. If we make the best use of internal and external ideas, we win. We should control our innovation process, so that competitors don’t profit from our ideas We should profit from others’ use of our innovations, and we should buy others’ intellectual property whenever it advances our own interest 27 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Outside-in versus inside-out approaches Key Partners ü Other company’s IP ü External scientists ü Retires scientists Key Activities ü Internal R&D Key Resources ü Internal R&D Procter & Gamble: Connect and Develop Cost Structure ü Leveraging internal R&D Value Proposition ü IP for underserved diseases Customer Relation ü Acquisition ü Retention Customer Segments ü Outside researchers Channels ü Patent pools Glaxo. Smith. Kline: Patent Pools Revenue Streams ü License fee 28 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Inno. Centive Key Partners ü Major ‘seekers’ Key Activities Value ü Platform Proposition managemen ü Access to t broad ü Acquire network of solvers and scientist seekers ‘solvers’ ü Connect Key ‘seekers’ and Resources ‘solvers’ ü Brand ü Access to ü Patents scientific (blocking) challenges with cash rewards Cost Structure ü Platform management ü Acquisition of solvers and seekers 29 Customer Relation ü Online profiles Customer Segments ü Seekers (company) ü Solvers (scientists) Channels ü Innocenti ve. com Revenue Streams ü Free access to challenges ü Fee to list challenges ü Commission on rewards for Business Model Generation (Osterwalder and Pigneur, 11/6/2020 2010) solutions
3. Design 1. 2. 3. 4. 5. 6. 30 Customer insights Ideation Visual thinking Prototyping Storytelling Scenarios Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Customer insights “If I had asked my customers what they wanted, they would have told me ‘a faster horse. ’”- Henry Ford Empathy Map What does the customer SEE? What does the customer HEAR? What does the customer SAY and DO? PAIN 31 Business Model Generation (Osterwalder and Pigneur, 2010) What does the customer THINK and FEEL? GAIN 11/6/2020
2. Ideation A creative process for generating a large number of (business model) ideas and successfully isolating the best ones. Generation Synthesis Suggested approaches: ü Epicenters of Business Model Innovation ü What if? Analysis 32 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Epicenters of Business Model Innovation Resource- driven Example: Amazon Web Services Customer- driven Example: 23 and. Me (personalized DNA testing) 33 Offer- driven Example: Cemex (Mexican cement company) Finance- driven Example: Xerox 914 (lease at $95 per month, 2000 free copies, 5 cents per copy Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Power of ‘what if’ questions Examples � IKEA (buyers pick up components in flat packaging and assemble themselves) � Rolls-Royce (maintenance price for every hour an engine runs) � Skype (free voice calling over Internet) � Car 2 go by Daimler (car rental anywhere in the city) � Zopa (peer-to-peer landing system) � Grameen Phone (microfinance coupled with mobile devices) 34 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
Ideation Process General approach � Team composition (diverse at all levels) � Immersion (home work on customer, technology, trends, business models) � Expanding (ideation with a focus on quantity, not quality) � Criteria selection (e. g. implementation time, revenue potential, possible customer resistance, and impact on competitive advantage) � Prototyping (creation of a business model for shortlisted ideas) 35 Brainstorming rules � Stay focused on a well honed statement � Enforce rules, such as deferring judgment, go for quality, encourage wild ideas, etc. � Think visually with postit notes, sketches, etc. � Prepare, with an immersion exercise beforehand Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
3. Visual Thinking � Sketches- however rudimentary or amateurish- help people better describe, discuss, and understand issues. Suggested processes � Visualizing with Post-it notes � Visualizing with drawings � Understand the essence � Enhance dialogue � Explore ideas � Improve communication � Telling 36 a visual story Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
4. Prototyping � For pre-implementation visualization and testing � Tool of inquiry � Infuses a design attitude, which includes � Willingness to explore crude ideas � Rapidly discarding them � Take time to examine multiple possibilities � Accept uncertainty until design direction matures � Scale of prototypes � Napkin sketches elaborate canvas business case field-test 37 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
5. Storytelling Why storytelling? � Introducing the new (provoke ideas/ justify change/ introducing tangibility) � Pitching to inventors (for clarification) � Engaging employees Techniques: üTalk and image üVideo clips üRole play Typical starting points (choice of protagonist) � Company perspective (employee observer) � Customer perspective (customer 38 jobs) Business Model Generation (Osterwalder and Pigneur, 2010) üText and image üComic strip 11/6/2020
6. Scenarios Types of scenarios � Define different customer settings � How products or services are used � What kind of customers use them � Customer concerns, desires and objectives � Possible 39 future environments Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
4. Strategy 1. 2. 3. 4. 40 Business model environment Evaluating business models Business model perspectives on Blue Ocean Strategy Managing multiple business models Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Business Model Environments Industry forces ü Suppliers and other value chain actors ü Stakeholders ü Competitors (incumbents) ü New entrants (insurgents) ü Substitute products and services Key trends ü Regulatory trends ü Technology trends ü Societal and cultural trends ü Socioeconomic trends Macro-economic factors ü Global market conditions ü Capital markets ü Economic infrastructure ü Commodities and other resources Market forces ü Market segments ü Needs and demands ü Market issues ü Switching cost ü Revenue attractiveness 41 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
2. Evaluating business models � Big picture assessment � Happens on the business model � Identification of +/ - for each of the nine elements of business model � SWOT analysis (Strength- Weakness- Opportunity- Threat) � Value proposition assessment � Cost/ revenue assessment � Infrastructure assessment � Customer interface assessment 42 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT analysis (indicative questions)1/4 Value proposition assessment � Our value propositions are well aligned with customer needs � Our value propositions have strong network effect � There are strong synergies between our products and services � Our customers are very satisfied 43 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT analysis (indicative questions) 2/4 Cost/ revenue assessment � We benefit from strong margins � Our revenues are predictable � We have recurring revenue streams and frequent repeat purchases � Our revenue streams are diversified � Our revenue streams are sustainable � We collect revenue before we incur expenses � We charge for what customers are really willing to pay for � Our pricing mechanisms capture full willingness to pay � Our costs are predictable � Our cost structure is correctly matched to our business model � Our operations are cost-efficient � We benefit from economies of scale 44 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT analysis (indicative questions) 3/4 Infrastructure assessment � Our key resources are difficult for competitors to replicate � Recourse needs are predictable � We deploy key resources in the right amount at the right time � We efficiently execute key activities � Our key activities are difficult to copy � Execution quality is high � Balance of in-house versus outsourced execution is ideal � We are focused and work with partners when necessary � We enjoy good working relationships with key partners 45 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT analysis (indicative questions) 4/4 Customer interface assessment � Customer churn rates are low � Customer base is well segmented � We are continuously acquiring new customers � Our channel are very efficient � Out channels are very effective � Channel reach is strong among customers � Customers can easily see our channels � Channels are strongly integrated � Channels provide economies of scope � Channels are well matched to customer segments � Strong customer relationships � Relationship quality correctly matches customer segments � Relationships bind customers through high switching costs � Our brand is strong 46 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT- Assessing threats – 1/2 Cost/ revenue threats � Are our margins threatened by competitors? By technology? � Do we depend exclusively on one or more revenue streams? � Which revenue streams are likely to disappear in the future? � Which costs threaten to become unpredictable? � Which costs threaten to grow more quickly than the revenues they support? Business Model Generation (Osterwalder 11/6/2020 Value proposition threats � Are substitute products and services available? � Are competitors threatening to offer batter price or value? 47 and Pigneur, 2010)
SWOT- Assessing threats – 2/2 Customer interface threats Infrastructure threats � Could we face a disruption in � Could our market be saturated soon? the supply of certain resources? � Are competitors threatening our market share? � Is the quality of our resources threatened in any � How likely are customers to way? defect? � What key activities might be � How quickly will competition disrupted? in our market intensify? � Is the quality of our activities � Do competitors threaten our threatened in any way? channels? � Are we in danged of losing � Are our channels in danged any partners? of becoming irrelevant to customers? � Might our partners collaborate with � Are any of our customer competitors? relationships in danger of deterioration? � Are we too dependent on 48 certain partners? Business Model Generation (Osterwalder 11/6/2020 and Pigneur, 2010)
SWOT- Assessing opportunities– 1/2 Value proposition opportunities � Could we generate recurring revenues by converting products into services? � Could we better integrate our products or services? � Which additional customer needs could we satisfy? � What complements to or extensions of our value propositions are possible? � What other jobs could we do on behalf of customers? 49 Cost/ revenue opportunities � Can we replace one-time transaction revenues with recurring revenues? � What other elements would customers be willing to pay for? � Do we have cross-selling opportunities either internally or with partners? � What other revenue streams could we add or create? � Can we increase price? � Where can we reduce cost? Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
SWOT- Assessing threats – 2/2 -a � Are there outsourcing Infrastructure opportunities? � Could we use less costly � Could greater collaboration resources to achieve the with partners help us focus same result? on our core business? � Which key resources could � Are there cross-selling be better sourced from opportunities with partners? � Could partner channels help � Which key resources are us better reach customers? under-exploited? � Could partner complement � Do we have unused our value proposition? intellectual property of value to others? � Could we standardize some key activities? � How could we improve efficiency in general? � Would IT support boost 50 efficiency? Business Model Generation (Osterwalder 11/6/2020 and Pigneur, 2010)
SWOT- Assessing threats – 2/2 -b we increase margins by directly serving customers? � Could we better align channels with customer segments? � Is there potential to improve customer follow-up? � How could we tighten our relationships with customers? � Could we improve personalization? � How could we increase switching cost? � Have we identified and fired unprofitable customers? If not, why not? Business Model Generation (Osterwalder 11/6/2020 and Pigneur, � Do we 2010) need to automate Customer interface opportunities � How can we benefit from a growing market? � Could we serve new customer segments? � Could we better serve our customers through finer segmentation? � How could we improve channel efficiency or effectiveness? � Could we integrate our channels better? � Could we find new complementary partner channels? 51 � Could
3. Business model perspectives on Blue Ocean Strategy Four action framework (ERRC Grid) � Which of the factors that the industry takes for granted should be eliminated? � Which factors should be reduced well below the industry standards? � Which factors should be raised well above the industry standards? � Which factors should be created that the industry has never offered? KP KA VP CR KR C$ 52 CS CH R$ Cost Side Value Side Eliminate/ Reduce Raise/ Create Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
4. Managing multiple business models Choices of business model in bringing an idea to the market � Integration (e. g. integration of each SMH (Swatch Group) watch brand across the high, mid and low segments) � Autonomy (e. g. Car 2 go care rental startup from Daimler? ) � Separation (e. g. complete independence of Nespresso SA from Nescafe) 53 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
5. Process 1. 2. 54 Starting point Five phases Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Starting point Objectives of new business models � Satisfy markets (e. g. Tata Nano, Net. Jets, Grameen. Bank, Lulu. com) � Bring new product to market (e. g. Xerox 914, Swatch, Nespresso, Red Hat) � Improve market (e. g. Dell, Nintendo Wii, IKEA, Bharati Airtel, Skype, Ryan air, Amazon. com, Better Place) � Create market (e. g. Diners Club, Google) 55 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
2. Five phases Phases are � Mobilize (setting the stage) � Understand (immersion) � Design (inquiry) � Implement (execution), and � Manage (evolution) 56 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
6. Outlook 1. 2. 3. 4. 5. 57 Business models beyond profit Computer aided business models Business model and business plan Implementation issues Leveraging IT Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
1. Beyond-profit business models � Categories � Third-party funded enterprise models � Triple bottom line business models Grameenphone KP üGrameen Bank üNetwork Consortium (Telenor) C$ üNetwork 58 KA üManage network KR VP üIncome opportunity üMobile commn’ CR CH üGrameen Bank üVillage phone ladies CS üVillage phone ladies üVillagers R$ üCommunication income Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
2. Computer aided � There a host of computer application useful for mind mapping, scenario generation, large data analysis, trend spotting, etc, that could complement paper-based approaches 59 Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
3. Business plans Executive summary � The team � � � Management profile Why we are a winning team � � The business model � Vision, mission and values How our business models works Value proposition Target market Marketing plan Key resources and activities � � � � � 60 Projects Milestones Roadmap Risk analysis � Breakeven analysis Sales scenarios and projections Capital spending Operating costs Funding requirements The economy Market analysis and key trends Competitor analysis Competitive advantage of our business model Implementation roadmap � Financial analysis � External environment � � Limiting factors and obstacles Critical success factors Specific risks and countermeasures Conclusion � Annexes � Business Model Generation (Osterwalder and Pigneur, 2010) 11/6/2020
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