Business Model, Value
Chain & Data Touchpoints
How value is created, where data originates, and how to
model it
Business Logic
Tuan Truong
Learning Objectives
1 2 3 4
Describe a Draw a value Model one Identify data-
business model chain for a process using generating and
specific BPMN data-collecting
industry/context touchpoints
The Big Picture
• Flow: Business Model → Value Chain → BPMN → Data Touchpoints
• Business Model: Who, What, How money flows
• Value Chain: Where value is created
• BPMN: How the process works internally
• Touchpoints: Where data is generated
What is a
business model?
• A business model explains how value is
created, delivered, and captured.
• Answer critical questions:
• Who are you helping?
• What value do you deliver?
• How do you reach and serve them?
• How do you earn money sustainably?
• If strategy is “where to play and how to win,”
the business model is the blueprint of how it
works day-to-day
Business Model Basics
A business model defines:
Customer Value Revenue
Channels [Z]
Segments [X] Proposition [Y] Streams [R]
We help [X] do [Y] via [Z], and we earn by [R].
The Business Model Canvas
• Nine building blocks (the full map):
• Customer Segments, Value Propositions, Channels, Customer
Relationships
• Revenue Streams
• Key Resources, Key Activities, Key Partnerships
• Cost Structure
• 4 big areas:
• Customers | Offer | Infrastructure | Financial viability
BMC Block by block
➢ Block 1: Customer Segments (CS) - Define who you
serve
• Common segment types:
• Mass market vs niche
• Segmented (different needs) vs diversified
• Multi-sided (two+ user groups)
➢ Block 2: Value Propositions (VP) - Why customers
choose you
• VP = solve problems + satisfy needs
• VP can be functional + emotional + social:
• Save time/money
• Reduce risk
• Improve quality or experience
• Status, belonging, peace of mind
• Example: “For (segment), who struggle with
(problem), we provide (solution) so they can
(benefit).”
BMC Block by block
➢ Block 3: Channels (CH) - How value is
delivered to customers
• Channel phases – mapping with CJM
• Awareness
• Evaluation
• Purchase
• Delivery
• After-sales
• Decisions to make:
• Direct vs indirect
• Owned vs partner channels
• Online vs offline mix
BMC Block by block
Block 4: Customer Relationships (CR) - The type of relationship you establish &
maintain
Relationship types:
• Personal assistance (human support)
• Dedicated personal assistance (VIP)
• Self-service
• Automated service (bots, personalization)
• Communities
• Co-creation
CR should match:
• Segment value (LTV)
• Channel economics
• Brand promise
CR impacts costs heavily—high-touch relationships often require
higher pricing or high LTV.
BMC Block by block
➢ Block 5: Revenue Streams (R$) - How the business earns money from
value delivered
• Revenue models:
• Asset sale
• Subscription
• Usage-based
• Licensing
• Advertising
• Freemium / cross-subsidy
• Pricing mechanisms (examples):
• Feature-dependent, customer-segment dependent, yield
management, real-time market, volume-dependent, auctions
“What do customers actually pay for?” Sometimes it’s not the thing
you think.
➢ Block 6: Key Resources (KR) - Most important assets
required to make the model work
• Categories (with examples):
• Physical (stores, warehouses, equipment)
• Intellectual (brand, IP, customer data)
• Human (talent, specialized teams)
• Financial (cash, credit lines)
BMC Block by ➢ Block 7: Key Activities (KA) - What you must do
exceptionally well
block • Common KA types:
• Production (build/operate)
• Problem solving (consulting, services)
• Platform/network (matchmaking, ecosystem)
• Test questions:
• What activities are non-negotiable for our VP?
• What must be in-house vs outsourced?
BMC Block by block
➢ Block 8: Key Partnerships (KP) - Who helps you deliver /
reduce risk / reduce cost
• Partnership motivations:
• Optimization & economies of scale (outsourcing, shared
infra)
• Reduction of risk & uncertainty (alliances)
• Acquisition of resources/activities (licenses, access,
capabilities)
➢ Block 9: Cost Structure (C$) - The most important costs
incurred to operate the model
• Cost structure types:
• Cost-driven (leanest possible cost; automation;
outsourcing)
• Value-driven (premium value + high personalization)
• Cost thinking:
• Fixed vs variable costs
• Cost per acquisition, cost to serve, fulfillment costs
Spotfiy business model basic
• Freemium Model - This example illustrates a classic digital product
where the value delivery and the product itself are entirely digital.
• [X] Customer Segments: Music enthusiasts and podcast
listeners who want convenience.
• [Y] Value Proposition: Access to millions of songs instantly, with
personalized recommendations and offline playback.
• [Z] Channels: Mobile app, desktop application, and web player.
• [R] Revenue Streams: Monthly subscription fees (Premium users)
and Advertising fees (Free tier users).
• The Statement:
• "We help music enthusiasts access and discover millions of
songs instantly via a cross-platform streaming app, and we earn
by charging monthly subscription fees and selling audio ad
space."
The “logic”
of the BMC
• Fit & cause–effect
• Blocks are linked; changes cascade.
• Examples:
• If VP becomes premium → CR
often becomes higher-touch →
costs rise
• If Channels shift to partners →
KP becomes more important
• If you add a segment → may
require new VP + channels +
pricing
Workshop: • Instructions (team activity):
• Pick ONE
Critique checklist (fast):
• CS: specific enough?
draft your
product/business idea • VP: measurable customer
• Fill in this order: benefit?
first canvas • CS → VP → CH → CR →
R$
• CH: realistic acquisition +
delivery?
(30 mins) • KR → KA → KP → C$
• Use post-its; write
• CR: cost-to-serve matches
LTV?
assumptions, not certainty • R$: clear willingness-to-pay?
• Facilitation tips: • KR/KA: feasible, defensible?
• Diverse team input • KP: who must say yes?
improves ideation (don’t • C$: biggest cost driver
leave it to “creative types”) identified?
• Brainstorm visually with
Use 1 A0 paper for post-its to regroup ideas
each group
Value Chain Explained
• Shows step-by-step how value is created.
• Primary activities: operations, logistics,
marketing, service
• Support activities: HR, tech, procurement
• Objective: find value creation and bottlenecks
Value Chain Template
Acquire Acquire demand (Marketing)
Convert Convert demand (Sales/Order)
Fulfill Fulfill (Operations/Logistics)
Support &
Support & retain (Customer Service)
retain
Improve Improve (Analytics, R&D)
Each value-chain step contains
From Value processes
Chain to
Processes Example: “Fulfillment” might
include: pick-pack-ship / dispatch
/ delivery / proof-of-delivery
Data • Where data is:
• Created
• Examples:
• Web/App: views,
Touchpoints • Captured clicks, orders
• POS: item, price,
• Transferred
timestamp
• Stored
• CRM: tickets,
feedback
Touchpoints can be digital • Logistics: delivery
(app click) or physical (POS status
scan). • Payments:
authorization,
refunds
Touchpoint Inventory Table
Step Actor/System Event Data Frequency Used for
Captured KPIs
App OrderCreated ProductID, High Conversion
Checkout
Amount Rate
Logistics Delivered OrderID, High Delivery SLA
Delivery
Time
• Basic Elements:
• Pools/Lanes – Process Resources
• Tasks (what)
• Gateways (decisions)
Recall BPMN •
•
Events (start/end)
Data Objects
• Message flows (interaction)
Pick a business process
and draw completed BPMN
including all elements
Module 2
exercise
Identify the data
touchpoints