BUSINESS MODEL CANVAS

BPME 3053
 A strategic management template
WHAT IS IT? for developing new or documenting
and upgrading existing business
models.

It is a visual chart with elements

describing a firm's value
proposition, infrastructure,
customers, and finance.

It has at least 9 building blocks.

WHY BUSINESS CANVAS?

• To understand the external influences that affect the decision

making process of investors who will be using funds to shape
their market place.
• To be able to appreciate the unmet needs to be addressed.
• To be able to tell a compelling story about the impact the
market it operates in, their financial performance and their
implementation plan.
• To be able to design a business model for the company
HOW DOES IT
LOOK LIKE?
HOW TO USE BMC?
1. CUSTOMER SEGMENT
(WHO TO SELL TO?)
• Which customers and users are you serving?

• Customers are the heart and soul of the business

• Mass market: no different between segment
• Niche market: a small specialized market
• Segmented: different segments are chosen
• Diversified: two segments with totally different needs and
problems
• People based on the same segment would have similar needs
and can be accessed through similar channel
2. VALUE PROPOSITION
(WHY SELL?)
• What is the unique about your service to the customers?
• What is the reason the customer choses you?
• Does your value proposition satisfying customers need or
solve their problem?
• Example: Newness, performance, customization, design,
brand, price, cost reduction, risk reduction, accessibility and
convenience.
 3. CHANNELS
(HOW TO REACH?)
• How the Customer Segments will be reach or connected ?
• Which channel are effective?
• Which channel are efficient?
• Example: Direct selling, Online service, Outlets, franchises,
retails, strategic alliances, agents and etc.
CUSTOMER RELATIONSHIP
What relationship that the target customer expect
you to establish

What kind of step have you taken to establish and

maintain with your customer?

Example: Personel assistance, self-service,

automated services, communities, co-creation
and etc.
 REVENUE STREAMS
(HOW MUCH WILL YOU EARN?)
What value do your customers want to pay? How?

What kind of activities and service that you offer that generate income
for your company?

Example: Sales of goods, users fees, renting, licensing,

consultation fees and etc.
KEY RESOURCES
• What kind of resources do you need to generate your
business?
• Assets can be owned, lease or obtained by making use of the
key partners
• Example: Human resource, facilities, building, technology,
machine, partnership, financial and etc
 KEY ACTIVITIES

• What is your key activities that has to be carry out in

order to make your business model work?
• Which activities do you need to perform well in
generating revenue?
• Example: Production, design, innovation, networking,
sales, marketing, promotion, service and cost reduction
 KEY PARTNERS

• Who is your partner and suppliers ?

• With whom are you acquainted to boost your company
• They can be strategic alliance between non-competitors,
joint ventures from different industries, buyer-supplier
relationship or strategic partners between competitors.
• Example: Upper Staff Management, Government
Agency, University, Institutions and others
 COST STRUCTURE
(HOW MUCH DOES IT COST?)
• What is the most important cost to generate your
business ?
• List the cost based on your activities
• Example: Worker salary, marketing fees,
maintenances fees, traveling cost, rental cost and
etc.
DESIGN YOUR OWN BUSINESS MODEL
CANVAS
THANK YOU