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Bmc
The business model canvas (BMC) outlines how an organization creates, delivers, and captures value through nine essential building blocks, including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. Each element plays a crucial role in determining how a business interacts with its customers, generates revenue, and maintains efficiency. By understanding these components, businesses can effectively map their model and strategize for success.
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Bmc
- 1. MAPPING YOUR BUSINESS BUSINESSMODEL CANVAS (BMC)
- 2. Def.: Describes the rationalof how organization creates, delivers and captures the value.
- 4. 9 building blockof CANVAS: Customer segment Value proposition Channels Customer relationship Revenue stream Key resources Key activities Key partnerships Cost structure
- 5. Customer segment (CS): Mass market Segmented Niche market Diversified Multisidedplatform (interdependent market)
- 6. Value proposition (VP), Why customer turn toone company over another? Design Getting the job done Newness Performance Price Customization Brand/ status Risk reduction Cost reduction Convenience/ usability Accessibility
- 7. Channels (CH) It servesseveral functions: Raising awareness among customers about company Help customers evaluate customer’s value proposition Allow customers purchase specific product and services Delivering a value proposition to customers Providing post-purchase customer support How company communicates with and reaches its customer segments to deliver value proposition?
- 8.
- 9. Customer relationship (CR): Driven with: Customer acquisition Customerretention Boosting sales Personal assistance Self services Communities Automated service Co-creation
- 10. Revenue stream (RS) Cash thatcompany generates from each customer segment. Costs must be subtracted from revenues to create earnings For what value is each segment willing to pay?
- 11. Two types ofrevenue stream: • One time customer payment Transaction revenues: • Ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support Recurring revenues:
- 12. The question list: Forwhat value our customers are willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each revenue contribute to overall revenues?
- 13. Ways to generaterevenue stream: Asset sale: selling ownership rights to physical products. Usage fee: use of particular service. Subscription fees: a gym subscription monthly or yearly. Lending/ renting/ leasing: created by temporarily granting someone the exclusive right to use a particular asset for a fixed in return for a fee. Licensing: giving customers permission to use protected intellectual property in exchange for licensing fees.
- 14. Key resources (KR): Physical •manufacturing facilities, • buildings, • vehicles, • machines, • systems, • point-of-sales systems, • and distribution network Intellectual • brands, • proprietary • knowledge, • patents and copyrights, • partnerships, • and customer databases Human • human resources are crucial in knowledge- intensive and creative industries Financial • cash, • lines of credit • a stock option pool for hiring key employees
- 15. Key activities (KA): Production Designing Making Delivering Problemsolving Knowledge management Continuous training Platform/ network Networks Matchmaking platforms Software's
- 16. Key partnerships (KP): Strategicalliances between non-competitors Coopetition: strategic partnerships between competitors Joint ventures to develop new business Buyer-supplier relationship to assure reliable support
- 17. Cost structure (CS): •Minimizing costs wherever possible • creating and maintaining the leanest possible cost structure • Using: low price Value Propositions, maximum automation, and extensive outsourcing Cost driven • Premium Value Propositions • a high degree of personalized service • Luxury hotels Value driven