YEFYEF

AgendaEvaluating question and solutionLean CanvasBiz Model canvasRevenue Stream optionsExamples

QS Matrix

SolutionQuestionGoodBadBad

BIZ MODEL CANVAS?

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Biz model Canvas Biz Model Canvas ..

Lean Canvas

An fancy example.

FURTHER

Risk evaluation

Product RiskFirst make sure you have a problem worth solvingDefine the smallest possible solution (MVP)Demonstrate Unique Value PropositionBuild MVP at small scale then verify at large scale

Customer RiskIdentify who has the painThen narrow down to early adopters who really want your productIts okay to start with outbound channelsBut gradually build/develop scalable inbound channels

Market RiskIdentify competition through existing alternative and pick a price for your solutionTest pricing first by measuring what customers sayThen by what they doOptimize your cost structure to make the biz model work

Design Your Biz

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Principles of design thinking?

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user-centered

*http://www.flickr.com/photos/archibaldjude/31352718/in/photostream/CC Attribution-NoDerivs Licensearchibald jude

creativity & exploration

*http://www.flickr.com/photos/r000pert/111340712/CC Attribution-NoDerivs Licenser000pert

interdisciplinary

*http://www.denismartin.ch/Plats/Plat-2.htmRestaurant Denis MartinLe shampoing d'eau de mer aux st.Jacques et Wasabi

holistic

*http://www.flickr.com/photos/tierecke/200249854/CC Attribution-NoDerivs LicenseNir Nussbaum

fit

*http://www.flickr.com/photos/generated/501445202/CC Attribution LicenseJared Tarbell

the designers toolbox

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co-creation

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ideation

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visualization

*http://www.flickr.com/photos/framesniper/153464496/CC Attribution-NoDerivs LicenseJeff Ryan

prototyping

*http://www.flickr.com/photos/lonelymoose/27178877/Attribution-NoDerivs Licenselorelei

what is a business model?

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VALUEPROPOSITIONCOSTSTRUCTURECUSTOMERRELATIONSHIPSCUSTOMERSEGMENTSACTIVITYCONFIGURATIONCORECAPABILITIESPARTNERNETWORKREVENUESTREAMSINFRASTRUCTURECUSTOMEROFFERFINANCEa business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streamsDISTRIBUTIONCHANNELS[Osterwalder (2004) The Business Model Ontology]business model framework

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Apple iTunes & iPod

*http://www.flickr.com/photos/gcarvalho/389234178/CC Attribution-NoDerivs LicenseGui Carvalho

iPodcost structurelifestyle brandhigh-end consumerprod. & softw. designhardware & softw. dev.hardware revenuesiTunesmultimedia downloadse-commercemultimedia rights mgmtiBookcontent producersApple storesdealer networkmultimedia revenueshardware suppliersbrand managementhardware distributioncontent distributioncontent

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strategic fit

*http://www.flickr.com/photos/generated/501445202/CC Attribution LicenseJared Tarbell

the Amazon.com you know

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Amazon Simple Storage Services (S3)

*http://www.flickr.com/photos/69875617@N00/3425464/CC Attribution-ShareAlike LicenseJohn Seb Barber

Amazon S3Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer.

Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL.

Pricing is cheaper than anything else Ive seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services Ive previously profiled will be much better off moving their entire back end to S3.

selling stuffon the WebIT infracustomer relationshipsmass customerdata servicesAmazon.com data gridpartnersselling stuffAmazon S3Amazon.comInternet APIWeb2.0 companieswarehousing & distributiondistributioncontent managementproduct selectionA9 product searchdata storage feesproduct searchsearch engine revenuese-commerce sitesInternetmarketing

*Amazon S3Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer.

Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL.

Pricing is cheaper than anything else Ive seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services Ive previously profiled will be much better off moving their entire back end to S3.

back to YOU INC.

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the customer interface

*http://www.flickr.com/photos/astro-dudes/512878662/Creative Commons Attribution No Derivs LicenseClaire L. Evans

it better be integrated

*http://www.flickr.com/photos/capricious/348454739/Creative Commons Attribution LicenseJohanna Abzug

VALUEPROPOSITIONCOSTSTRUCTURECUSTOMERRELATIONSHIPSCUSTOMERSEGMENTSACTIVITYCONFIGURATIONCORECAPABILITIESPARTNERNETWORKREVENUESTREAMSDISTRIBUTIONCHANNELS[Osterwalder (2004) The Business Model Ontology]various starting points / depending on context

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Netflix(niche) movies over the InternetCOSTSTRUCTUREprofilespecialized clienteleACTIVITYCONFIGURATIONlarge movie databaseindependent filmsREVENUESTREAMSWebonline movie rental (with large niche movie database)

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Skypefree VoIP & value added servicessoftware developmentwebsiteglobal(non segmented)deliver voice & video qualityeBaylarge scalelow margininternetsoftware developmentfree voice-over-IP VoIP telephony & value-added services

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BUSINESS MODEL CANVAS

*images by JAMcustomer segmentskey partnerscost structurerevenue streamschannelscustomer relationshipskey activitieskey resourcesvalue propositionSource: , Steve Blank

CUSTOMER SEGMENTSwhich customers and users are you serving? which jobs do they really want to get done?Source: , Steve Blank

Customer Segments

The Customer Segments Building Block the different groups of people or organizations enterprise aims to reach and serve .Mass Market .niche Market .segmentedBoth segments have similar but varying needs and problems 1050 , .Diversified 2006 Amazon.com , Amazon.comuserhacker.. Multi-sided platforms (or multi-sided markets)google e-bay ! Googlesearchuser50*

VALUE PROPOSITIONSwhat are you offering them? what is that getting done for them? do they care?Source: , Steve Blank

Value Propositions

What value do we deliver to the customer? Which one of our customers problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? .Newness .Performance CPU storage.Customization websiteappco-creationT-shirtco-creation.Getting the job done solutionRolls-RoyceRolls-RoyceEztablesolutionEztable.Design Design is an important but difficult element to measure. A product may stand out because of superior design. In the fashion and consumer electronics industries, design can be a particularly important part of the Value Proposition. iphone / ipad? design? design.Brand/statusCustomers may find value in the simple act of using and displaying a specific brand. Wearing a Rolex watch signifies wealth, for example.coca-colaflashLVapple image.Price! DRAM3C.Cost reduction salesforce.comCRM application cost.Risk reductiondata.Accessibilitynetjet[], .Convenience/usabilityWith iPod and iTunes,Apple offered customers unprecedented convenience searching, buying, downloading, and listening to digital music. It now dominates the market.appone touch so easy so we make money33%iTunesapp! customers segment*

YEF

CHANNELShow does each customer segment want to be reached? through which interaction points?Source: , Steve Blank

Channels

.channel type1.own Sales forceWeb salesOwn stores2.Partner Partner storesWholesalerchannel phase1.Awareness.How do we raise awareness about our companys products and services?2. EvaluationHow do we help customers evaluate our organizations Value Proposition?3. PurchaseHow do we allow customers to purchase specific products and services?4. DeliveryHow do we deliver a Value Proposition to customers?5. After salesHow do we provide post-purchase support?SEOchannelchannelchannel*

CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?Source: , Steve Blank

Customer Relationships

What type of relationship does each of our Customer Segments expect us to establish and maintain with them?Which ones have we established? How costly are they? How are they integrated with the rest of our business model??1.Personal assistance.This may happen onsite at the point of sale, through call centers, by e-mail, or through other means. emailcall center 2.Dedicated personal assistance dedicated bankers serve high net worth individuals. Similar relationships can be found in other businesses in the form of key account managers who maintain personal relationships with important customers. 503.Self-serviceIn this type of relationship, a company maintains no direct relationship with customers. It provides all the necessary means for customers to help themselves. F&A4.Automated servicesAutomated services can recognize individual customers and their characteristics, and oer information related to orders or transactions. At their best, automated services canstimulate a personal relationship (e.g. offering book or movie recommendations). Google5.CommunitiesMany companies maintain online communities that allow users to exchange knowledge and solve each others problems. Communities can also help companies better understand their customers. Pharmaceutical giant GlaxoSmithKline launched a private online community when it introduced alli, a new prescription-free weight-loss product. Facebook6.Co-creationAmazon.com invites customers to write reviews and thus create value for other book lovers. Some companies engage customers to assist with the design of new and innovative products. Others, such as YouTube.com, solicit customers to create content for public consumption. youtubemobile01user? ? *

REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?Source: , Steve Blank

Revenue Streams

Transaction revenues resulting from one-time customer payments Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support. ? 1.asset sale The most widely understood Revenue Stream derives from selling ownership rights to a physical product. Amazon.com sells books, music, consumer electronics, and more online. EC2.usage fee This Revenue Stream is generated by the use of a particular service. hotel3.subscription feegymkkbox, 4.lending/renting/leasingThis Revenue Stream is created by temporarily granting someone the exclusive right to use a particular asset for a fixed period in return for a fee. , zipcar.com5.licensingThis Revenue Stream is generated by giving customers permission to use protected intellectual property in exchange for licensing fees. DRAMapple6.brokerage feeThis Revenue Stream derives from intermediation services performed on behalf of two or more parties. Credit card providers, for example, earn revenues by taking a percentage of the value of each sales transaction executed between credit card merchants and customers. redbeacon7.advertisingThis results from fees for advertising a particular product, service, or brand. Traditionally, the media industry and event organizers relied heavily on revenues from advertising.banner? *

Unit SalesAdvertising FeesFranchise feesUtility FeesSubscription FeesTransaction FeesProfessional FeesLicense Fees

KEY RESOURCESwhich resources underpin your business model? which assets are essential?Source: , Steve Blank

Key Resources

Every business model requires Key Resources. These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.Key resources can be physical, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired from key partners. .1.PhysicalThis category includes physical assets such as manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks. Retailers like Wal-Mart and Amazon.com rely heavily on physical resources, which are often capital-intensive.The former has an enormous global network of stores and related logistics infrastructure. The latter has an extensive IT, warehouse, and logistics infrastructure. Wal-Mart Amazon.comITphysical2.IntellectualIntellectual resources such as brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases are increasingly components of a strong business model.NikebrandsMicrosoft SAP3.HumanNovartis4.FinancialSome business models call for financial resources and/or financial guarantees, such as cash, lines of credit, or a stock option pool for hiring key employees.Ericsson, the telecom manufacturer, provides an example of financial resource leverage within a business model. Ericsson may opt to borrow funds from banks and capital markets, then use a portion of the proceeds to provide vendor financing to equipment customers, thus ensuring that orders are placed with Ericsson rather than competitors.Ericsson Groupon-like1key resource resourcegroupon-like?

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*KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial?Source: , Steve Blank

Key Activities

Every business model calls for a number of Key Activities. These are the most important actions a company must take to operate successfully.For software maker Microsoft, Key Activities include software development. For PC manufacturer Dell, Key Activities include supply chain management. For consultancy McKinsey, Key Activities include problem solving. runbusiness Plan?1.Production These activities relate to designing, making, and delivering a product in substantial quantities and/or of superior quality. Production activity dominates the business models of manufacturing firms. 2.Problem solvingKey Activities of this type relate to coming up with new solutions to individual customer problems. The operations of consultancies, hospitals, and other service organizations are typically dominated by problem solving activities. Their business models call for activities such as knowledge management and continuous training.solution3.Platform/networkBusiness models designed with a platform as a Key Resource are dominated by platform or network-related Key Activities. Networks, matchmaking platforms, software, and even brands can function as platform.eBays business model requires that the company continually develop and maintain its plat-form: the Web site at eBay.com. Visas business model requires activities related to its Visa credit card transaction platform for merchants, customers, and banks.Microsofts business model requires managing the interface between other vendors software and its Windows operating system platform. Key Activities in this category relate to platform management, service provisioning, and platform promotion. E-baykey activities VisaVisa credit card transaction platform WindowsOSkey resourceactivitieskey activitieskey activities/appWorks*

KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?Source: , Steve Blank

Key Partners

Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? key resourcekey partnerOK1.Optimization and economy of scalekey resource2.Reduction of risk and uncertaintyblu-ray3.Acquisition of particular resources and activitiesresource, App&? key resourcekey resource? key resourcekey resource resource*

COST STRUCTUREwhat is the resulting cost structure? which key elements drive your costs?Source: , Steve Blank

Cost Structures

The Cost Structure describes all costs incurred to operate a business model. ! Business Modelcost..Cost-driven cost downCost-driven business models focus on minimizing costs wherever possible. This approach aims at creating and maintaining the leanest possible. DRAM .Value-driven Some companies are less concerned with the cost implications of a particular business model design, and instead focus on value creation. Apple.Cost Structures can have the following characteristics:1.Fixed costs Costs that remain the same despite the volume of goods or services produced.2.Variable costs Costs that vary proportionally with the volume of goods or services produced.3.Economies of scale4.Economies of scopethe same marketing activities or Distribution may support multiple products. 7-11Economies of scope? startupproduct market fitresourcebusiness modelrun Business model teamBusiness Model CanvasSWOTPorterBusiness Model Canvas. PS:Business Model Canvas *

*images by JAMcustomer segmentskey partnerscost structurerevenue streamschannelscustomer relationshipskey activitieskey resourcesvalue propositionSource: , Steve Blank

EXAMPLES

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Apple(/)/

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5214233XXX 5

QS Matrix

SolutionQuestionGoodBadBad

Exercisequestion & solutionmatrixGoodQ SQS ~~~~

Time to Kick-Off!

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*http://www.flickr.com/photos/archibaldjude/31352718/in/photostream/CC Attribution-NoDerivs Licensearchibald jude*http://www.flickr.com/photos/r000pert/111340712/CC Attribution-NoDerivs Licenser000pert*http://www.denismartin.ch/Plats/Plat-2.htmRestaurant Denis MartinLe shampoing d'eau de mer aux st.Jacques et Wasabi *http://www.flickr.com/photos/tierecke/200249854/CC Attribution-NoDerivs LicenseNir Nussbaum

*http://www.flickr.com/photos/generated/501445202/CC Attribution LicenseJared Tarbell*

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*http://www.flickr.com/photos/framesniper/153464496/CC Attribution-NoDerivs LicenseJeff Ryan*http://www.flickr.com/photos/lonelymoose/27178877/Attribution-NoDerivs Licenselorelei*

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*http://www.flickr.com/photos/gcarvalho/389234178/CC Attribution-NoDerivs LicenseGui Carvalho*

*http://www.flickr.com/photos/generated/501445202/CC Attribution LicenseJared Tarbell*

*http://www.flickr.com/photos/69875617@N00/3425464/CC Attribution-ShareAlike LicenseJohn Seb Barber

Amazon S3Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer.

Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL.

Pricing is cheaper than anything else Ive seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services Ive previously profiled will be much better off moving their entire back end to S3.*Amazon S3Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer.

Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL.

Pricing is cheaper than anything else Ive seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services Ive previously profiled will be much better off moving their entire back end to S3.*

*http://www.flickr.com/photos/astro-dudes/512878662/Creative Commons Attribution No Derivs LicenseClaire L. Evans*http://www.flickr.com/photos/capricious/348454739/Creative Commons Attribution LicenseJohanna Abzug*

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The Customer Segments Building Block the different groups of people or organizations enterprise aims to reach and serve .Mass Market .niche Market .segmentedBoth segments have similar but varying needs and problems 1050 , .Diversified 2006 Amazon.com , Amazon.comuserhacker.. Multi-sided platforms (or multi-sided markets)google e-bay ! Googlesearchuser50*What value do we deliver to the customer? Which one of our customers problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? .Newness .Performance CPU storage.Customization websiteappco-creationT-shirtco-creation.Getting the job done solutionRolls-RoyceRolls-RoyceEztablesolutionEztable.Design Design is an important but difficult element to measure. A product may stand out because of superior design. In the fashion and consumer electronics industries, design can be a particularly important part of the Value Proposition. iphone / ipad? design? design.Brand/statusCustomers may find value in the simple act of using and displaying a specific brand. Wearing a Rolex watch signifies wealth, for example.coca-colaflashLVapple image.Price! DRAM3C.Cost reduction salesforce.comCRM application cost.Risk reductiondata.Accessibilitynetjet[], .Convenience/usabilityWith iPod and iTunes,Apple offered customers unprecedented convenience searching, buying, downloading, and listening to digital music. It now dominates the market.appone touch so easy so we make money33%iTunesapp! customers segment*.channel type1.own Sales forceWeb salesOwn stores2.Partner Partner storesWholesalerchannel phase1.Awareness.How do we raise awareness about our companys products and services?2. EvaluationHow do we help customers evaluate our organizations Value Proposition?3. PurchaseHow do we allow customers to purchase specific products and services?4. DeliveryHow do we deliver a Value Proposition to customers?5. After salesHow do we provide post-purchase support?SEOchannelchannelchannel*What type of relationship does each of our Customer Segments expect us to establish and maintain with them?Which ones have we established? How costly are they? How are they integrated with the rest of our business model??1.Personal assistance.This may happen onsite at the point of sale, through call centers, by e-mail, or through other means. emailcall center 2.Dedicated personal assistance dedicated bankers serve high net worth individuals. Similar relationships can be found in other businesses in the form of key account managers who maintain personal relationships with important customers. 503.Self-serviceIn this type of relationship, a company maintains no direct relationship with customers. It provides all the necessary means for customers to help themselves. F&A4.Automated servicesAutomated services can recognize individual customers and their characteristics, and oer information related to orders or transactions. At their best, automated services canstimulate a personal relationship (e.g. offering book or movie recommendations). Google5.CommunitiesMany companies maintain online communities that allow users to exchange knowledge and solve each others problems. Communities can also help companies better understand their customers. Pharmaceutical giant GlaxoSmithKline launched a private online community when it introduced alli, a new prescription-free weight-loss product. Facebook6.Co-creationAmazon.com invites customers to write reviews and thus create value for other book lovers. Some companies engage customers to assist with the design of new and innovative products. Others, such as YouTube.com, solicit customers to create content for public consumption. youtubemobile01user? ? *Transaction revenues resulting from one-time customer payments Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support. ? 1.asset sale The most widely understood Revenue Stream derives from selling ownership rights to a physical product. Amazon.com sells books, music, consumer electronics, and more online. EC2.usage fee This Revenue Stream is generated by the use of a particular service. hotel3.subscription feegymkkbox, 4.lending/renting/leasingThis Revenue Stream is created by temporarily granting someone the exclusive right to use a particular asset for a fixed period in return for a fee. , zipcar.com5.licensingThis Revenue Stream is generated by giving customers permission to use protected intellectual property in exchange for licensing fees. DRAMapple6.brokerage feeThis Revenue Stream derives from intermediation services performed on behalf of two or more parties. Credit card providers, for example, earn revenues by taking a percentage of the value of each sales transaction executed between credit card merchants and customers. redbeacon7.advertisingThis results from fees for advertising a particular product, service, or brand. Traditionally, the media industry and event organizers relied heavily on revenues from advertising.banner? *Every business model requires Key Resources. These resources allow an enterprise to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments, and earn revenues.Key resources can be physical, financial, intellectual, or human. Key resources can be owned or leased by the company or acquired from key partners. .1.PhysicalThis category includes physical assets such as manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks. Retailers like Wal-Mart and Amazon.com rely heavily on physical resources, which are often capital-intensive.The former has an enormous global network of stores and related logistics infrastructure. The latter has an extensive IT, warehouse, and logistics infrastructure. Wal-Mart Amazon.comITphysical2.IntellectualIntellectual resources such as brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases are increasingly components of a strong business model.NikebrandsMicrosoft SAP3.HumanNovartis4.FinancialSome business models call for financial resources and/or financial guarantees, such as cash, lines of credit, or a stock option pool for hiring key employees.Ericsson, the telecom manufacturer, provides an example of financial resource leverage within a business model. Ericsson may opt to borrow funds from banks and capital markets, then use a portion of the proceeds to provide vendor financing to equipment customers, thus ensuring that orders are placed with Ericsson rather than competitors.Ericsson Groupon-like1key resource resourcegroupon-like?

*Every business model calls for a number of Key Activities. These are the most important actions a company must take to operate successfully.For software maker Microsoft, Key Activities include software development. For PC manufacturer Dell, Key Activities include supply chain management. For consultancy McKinsey, Key Activities include problem solving. runbusiness Plan?1.Production These activities relate to designing, making, and delivering a product in substantial quantities and/or of superior quality. Production activity dominates the business models of manufacturing firms. 2.Problem solvingKey Activities of this type relate to coming up with new solutions to individual customer problems. The operations of consultancies, hospitals, and other service organizations are typically dominated by problem solving activities. Their business models call for activities such as knowledge management and continuous training.solution3.Platform/networkBusiness models designed with a platform as a Key Resource are dominated by platform or network-related Key Activities. Networks, matchmaking platforms, software, and even brands can function as platform.eBays business model requires that the company continually develop and maintain its plat-form: the Web site at eBay.com. Visas business model requires activities related to its Visa credit card transaction platform for merchants, customers, and banks.Microsofts business model requires managing the interface between other vendors software and its Windows operating system platform. Key Activities in this category relate to platform management, service provisioning, and platform promotion. E-baykey activities VisaVisa credit card transaction platform WindowsOSkey resourceactivitieskey activitieskey activities/appWorks*Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? key resourcekey partnerOK1.Optimization and economy of scalekey resource2.Reduction of risk and uncertaintyblu-ray3.Acquisition of particular resources and activitiesresource, App&? key resourcekey resource? key resourcekey resource resource*The Cost Structure describes all costs incurred to operate a business model. ! Business Modelcost..Cost-driven cost downCost-driven business models focus on minimizing costs wherever possible. This approach aims at creating and maintaining the leanest possible. DRAM .Value-driven Some companies are less concerned with the cost implications of a particular business model design, and instead focus on value creation. Apple.Cost Structures can have the following characteristics:1.Fixed costs Costs that remain the same despite the volume of goods or services produced.2.Variable costs Costs that vary proportionally with the volume of goods or services produced.3.Economies of scale4.Economies of scopethe same marketing activities or Distribution may support multiple products. 7-11Economies of scope? startupproduct market fitresourcebusiness modelrun Business model teamBusiness Model CanvasSWOTPorterBusiness Model Canvas. PS:Business Model Canvas *