Service Model

The Service Model (or Delivery Model) refers to the Costs aspect of the Business Model Canvas. When we look at Costs just as costs, you will miss the opportunity to innovate in that respect. When we look at Costs as expenses for the delivery of our features and benefits to our clients, we will looks at cost not as something unavoidable, but actually as something we like to avoid without reducing customer value. Take a look at Blue Ocean's Value Innovation  

Continue: https://sites.google.com/site/moocmodules/marketing/service-model-vs-earning-model

PS: Delivery model is not about distribution and logistics and service model is not about the service you provide, it's about how you deliver our customer value (or service) to customers.