Burn Your Business Plan 

Images: Alexander Osterwalder 

Images: Alexander Osterwalder 

Images: Alexander Osterwalder 

Images: Alexander Osterwalder “Our age of anxiety is the result of trying to do today’s jobs with yesterday’s tools.” ! - Marshall McLuhan 

“No business plan survives the first contact with customers!” ! - Steve Blank 

Outcome: ! Change the way you think about business planning and strategy. 1 

Business model: ! describes how an organization creates, delivers, & captures value 

Outcome: ! Provide you with the tools needed to change the way you do business. 2 

Business Model Canvas: ! a visualization of your business model 

Business Model Generation www.businessmodelgeneration.com 

! ! ! ! ! ! ! ! ! ! ! > SWOT Analysis > Marketing & Sales > Financial Projections > Market Analysis > Operations > Empathize > Define > Ideate > Prototype > Test Business Strategy Design Thinking Business Model Generation 

Business Model Generation > Business Model Canvas > Patterns > Design > Strategy > Process 

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Building blocks of a business model: 9 

CUSTOMER SEGMENTS images by JAM People you’re creating value for. 

VALUE PROPOSITIONS images by JAM Products or Services that create value for your customers. 

CHANNELS images by JAM How you interact & deliver value. 

CUSTOMER RELATIONSHIPS images by JAM Types of relationships you have with your customers. 

REVENUE STREAMS images by JAM How you capture the value. 

KEY RESOURCES images by JAM Assets that are indispensable. 

KEY ACTIVITIES images by JAM What you really need to perform. 

KEY PARTNERS images by JAM Who can help you leverage your business model. 

COST STRUCTURE images by JAM What it costs to deliver your value. 

images by JAM customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition images by JA customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition customer segments customer relationships value proposition images by JAM customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition images by JAM customer segments revenue streams channels customer relationships ey es key ces value proposition customer segments revenue streams channels customer relationships key ies key rces value proposition 

Best Practices for using the business model canvas: 6 

You can start with any building block. 1 

Avoid writing on the canvas. 2 Use Post-it notes! 

Never use bullet points. Ever. 3 • blah • blah • blah • blah • blah • blah • blah • blah • blah • blah • blah • blah 

Instead, use 1 or 2 words per post-it. 3 RETAIL 

Don’t get held up by too much blah, blah, blah. - Just start! 4 

Avoid too much detail. 5 Our main customer segment is new, young mothers; aged 25-35; living in Edmonton; with 2 cars; 1 dog; and maybe a cat! 

Be precise for every building block. - We are looking at the big picture! 6 

You can start with any block. 1 2 3 4 5 6 Don’t write on the canvas - use post-it notes. Never use bullet points. Instead, use 1 or 2 clear words. Don’t get held up by too much blah, blah, blah - just start! Avoid going into too much detail. Be precise for every building block. 

An Example: ! Nespresso’s Business Model 

KEY PARTNERS KEY ACTIVITES VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES CHANNELS REVENUE STREAMS COST STRUCTURE NESPRESSO POD SYSTEM MACHINE MANUFACTURER OFFICES JOINT VENTURE WITH MANUFACTURER Failed PATENTS 

KEY PARTNERS KEY ACTIVITES VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES CHANNELS REVENUE STREAMS COST STRUCTURE HOUSEHOLDS AQUIRE & LOCK-IN RETAIL NESPRESSO MACHINES BRAND PATENTS MARKETING MACHINE MANUFACTURER MARKETING & BRANDING 1 X MACHINE SALES PRODUCTION REPETITIVE POD SALES NESPRESSO WEBSITE MAIL & CALL CENTRE NESPRESSO STORES DIRECT B2C DISTRIBUTION PRODUCTION DISTRIBUTION CHANNELS COFFEE PRODUCTION FACILITES COFFEE GROWERS B2C DISTRIBUTION NESPRESSO PODS 

Increased price per gram of coffee by 600% - 800% $ 

Average growth of 30% p.a. since 2000 $ 

Global sales of over $3.8 billion $ 

Still one of Nestlé’s fastest growing brands $ 

The same technology, product, or service can have many different business models. 

The right business model can be the difference between success & failure for the same product. 

Outcome: ! Change the way you think about business planning and strategy. 1 

1 

Business model: ! describes how an organization creates, delivers, & captures value 

Outcome: ! Provide you with the tools needed to change the way you do business. 2 

Business Model Generation 2 www.businessmodelgeneration.com 

Business Model Canvas 2 

Nick Keyko @nickkeyko [email protected] 

Acknowledgements • Alex Osterwalder • www.businessmodelgeneration.com • IDEO & Design Thinking • Eric Ries & Lean Startup www.businessmodelgeneration.com