THE COST MODEL:
C$-Cost Structure (Cost to deliver Solution)
The Cost Structure describes all costs incurred to operate a business
model
Cost Structure can be developed once we define the Key Resources, Key Activities and
Key Partnerships. Some business models will be more cost driven than others.
YOUTUBE VIDEO: https://www.youtube.com/watch?v=5sn7pZXY5b4
https://www.youtube.com/watch?v=7o8uYdUaFR4
KR-Key Resources (Cost to deliver Solution)
The Key Resources Building Block describes the most important assets
required to make a business model work
Key Resources can be categorized as follows:
-Physical, Intellectual, Human, Financial
YOUTUBE VIDEO: https://www.youtube.com/watch?v=fU8ATq_MF3M
KA- Key Activities (Cost to deliver Solution)
The Key Activities Building Block describes the most important things a
company must do to make its business model work
Key Activities can be categorized as follows:
-Production, Problem Solving, Platform/Network
YOUTUBE VIDEOS: https://www.youtube.com/watch?v=JYdcIqKROmc
https://www.youtube.com/watch?v=VJfp33eBekA
https://www.youtube.com/watch?v=K9GSOj_TT0E
KP- Key Partnerships (Cost to deliver Solution)
The Key Partnerships Building Block describes the network of suppliers
and partners that make a business model work
We can distinguish between four different types of relationships:
-Strategic alliances between non-competitors
-Competition; strategic partnerships between competitors
-Joint ventures to develop new business
-Buyer-supplier relationships to assure reliable supplies
REVENUE MODEL CONSIDERATION: