L24 - Buisness Model Flashcards
What is a buisness model?
- How you plan to make money
- Plans attract investment
- Serves as a strategy
What are the different types of buisness models?
Companies tend to use a combination of model types like amazon
Give the general steps of Buisness Model Development
- Who is the customer and what are thier traits
- What value can you deliver
- What operations and people are required to run the buisness
- How does the buisness plan to make money
What is a buisness model canvas?
What is the first step of BMD?
- Who is the customer
- The entities the company plans to sell its product/service to
- Customers are grouped into segments based on common characteristics
What is the second step of BMD?
What value does the business deliver to the customers
1. Value proposition
1. Services
2. Practical functionality
3. Social/Emotional services
What is the third step of BMD?
How does the business operate
1. Key activities - actives that is carried out for the product/service to be delivered to the customer
2. Key partners - entities that help the delivery of the product
3. Key resources - what resources are used for the product
4. Key channels - what channels are used for product delivery
5. Customer relationships - Business relationships maintained with the customer
What is the last step of BMD?
How does the business make money
1. Revenue model
2. Cost structure - all expenses that the business incurs in creating and delivering value to the customers
3. Revenu streams - all the primary and non-primary streams that the business utilises
What is the importance of a buisness model?
- Only documentation that makes clear
- The business idea
- Target market
- Problems and solutions the business
- How to reach customers
- Operating procedures
- How the business makes money as well as the costs
