HW#2 – Comparison Shopping & Country PESTS Infographic 75 Points OVERVIEW: As a product developer, there are 2 keys points to successful product lines – know your customer (target market)….
Describe the building blocks of a Business Model Canvas and how these elements interrelate
Describe the building blocks of a Business Model Canvas and how these elements interrelate. What key building blocks is your organization’s Business Model leveraged around? How does this compare to common patterns of Business Models in today’s innovation economy?
Alexander Osterwalder and Yves Pigneur (2010) identify the key building blocks as customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. These nine building blocks envelop a company or organization’s financial viability, consumers, offerings, and infrastructure. The building blocks basically form an interwoven representation for innovation.
Customer Segments: The focus of an organization typically targets one or more types of customers. This can also be defined as a multi-sided platform targeting to sell to two or more groups.
Value Propositions: This component focuses on creating value by being innovative and improving on products or performance to satisfy the needs of customers and solve customer problems.
Channels: An organization’s selection of channels that enable customers to experience, assess and buy what is being sold. This can be defined as the communication and components used to distribute and sell products or services.
Customer Relationships: An organization or company’s way of establishing different ways to target distinct market segments.
Revenue Streams: The revenue of the organization flows through sales or continuous coordination of payments (such as rentals, licenses or subscriptions.
Key Resources: These are assets a company or organization uses to continue innovative and quality service. It can be physical, financial, intellectual or human, depending on the company’s goals. These resources can be owned, acquired through rental or leasing.
Key Activities: A key task of the organization that can bring profit to the service or product.
Key Partnerships: A company’s partnerships, which may reduce costs or gain access to vital resources.
Cost Structure: This is the determination of costs through “fixed and variable” expenses.
IAP World Services is leveraged around customer segments, value propositions, channels, customer relationships, revenue streams, key revenue resources, key activities offered to the customer, and key partnerships with military counterparts. The company does not offer an actual product, but a service is offered to a specified group. Customer relationships and partnerships are built through coordination and planning with the customer to project future desires and needs.