SEMI-AUTOMATIC WELDING MACHINE EQUIPMENT 2016

Chapter-1: What is Business Model Canvas?

A business model describes the rationale of how an organization creates, delivers, and
Captures value.

This is a model that you use to define the components of your business. It offers an
interactive way to look at your current business model and improve your results.

It's a way to keep moving forward with an iterative business plan.

The Canvas is popular with entrepreneurs and entrepreneurs for business model
innovation. Fundamentally, I find it delivers three things:

Focus: Stripping away the 40+ pages of ‘stuff’ in a traditional business plan, I’ve seen users
of the BMC improve and clarify and focus on what’s driving the business (and what’s
noncore and Getting in the way).

Flexibility: It’s a lot easier to tweak the model and try things (from a planning perspective)
with something that’s sitting on a single page.

Transparency: Your team will have a much easier time understanding your business
model and be much more likely to buy in to your vision when it’s laid out on a single page

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Chapter-2: What are the elements of BMC?

These nine elements provide a pretty coherent view of a business’ key drivers

 Key partners
 Key activities
 Key resources
 Value proposition
 Customer relationship
 Channels
 Customer segments
 Cost structure
 Revenue stream

2.1 Key Partners

This section comprise of the core parts of project. Like key partner, key supplier and key
resources. We incorporate of:

o SUPPLIER
o ASSEMBLY
o WELDER
o FABRICATOR

2.2 Key Activities

These are the crucial things the business needs to do to deliver on its propositions and make
the rest of the business work- for example, if selling through 3rd parties is part of the model,
then activity around channel management is probably pretty important.
Like:

o TRAINING
o SPECIFICATION

2.3 Key Resources

Product-driven businesses have a differentiated product of some sort. Key Resources in

product-driven businesses are typically key talent in critical areas of expertise and
accumulated intellectual property related to their offering.

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o HUMAN
o FINANCIAL
2.4 Value Propositions

We found, we thought our largest customers worked with us because of the cost savings we
offered and our knowledge about best practices. It turned out that was mostly wrong reducing
their time and risk to get new services to market was the most important. It’s not that the
other things weren’t important, but they were a he top Value Proposition. That made. A
difference on how we sold the product and how we focused on operational zing it for
customers. We comprise following:

o PRICE
o STABILITY
o QUALITY
o EASY SETUP

2.5 Customer Relationships

It comprise of the things like, How does the customer interact with company through the
sales and product lifecycle? Do they have a dedicated personal contact they see? A
description of Customer Relationships with notes if they differ across Customers or across
the customer journey.

o FEED BACK
o LESS COSTLY

2.6 Channels

Channel includes entities you use to communicate your proposition to your segments, as well
as entities through which you sell product and later service customers. Our product is for
Electricity Controlling and there’s a mobile application that allows people to Control home or
remote places. So the Mobile application is a Sales Channel. If you use Google Ad Words,
that’s a Channel, too (for getting attention). If you use a third party company to service the
device when they fail, that’s also a Channel.
We incorporate:

o INTERNET
o PUBLICITY

2.7 Customer Segment

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Customer Segment block is to present the list of Personas, organized by Customer Segment.
If you have more than one segments. It is always recommended to prioritize them, which is
shown below:

o LESS ECONOMIC PERSON

o TRAINING
o INDUSTRY
o WELDING SHOP

2.8 Cost Structure

It is a list of Cost Structure elements with notes on their relationship to key Activities. Cost of
devices and maintenance go on Economic of scale and different other parameter.

o FABRICATION
o MATERIAL
o DESIGN

2.9 Revenue Streams

List of Revenue Streams linked to Personas and Value Propositions.

o SERVICE
o EFFICIENT
o QUALITY

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