CM#7 Rebuilding Business Model Canvas Based On Creativity and Innovation

Paradigm of
Innovation and Improvement

Friday, 24 March 2023
20:30 – 22:00
Amira Maulidina
2
WHY WHAT HOW
3
WHY WHAT HOW
4
BMC and Innovation
Tools in mapping the competitive capabilities of businesses built
Create a business visualization of Finding areas of improvement so Finding alternative business

the product innovation that is being that innovation ideas are more models that have the potential to be
made. feasible. explored.
Source: Key Management Models, 3rd Edition. Gerben van der Berg & Paul Pietersma. MarkPlus Analysis.
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Example: iPOD vs Zune Music Player
Product specs?
Price?
Marketing?
Customer’s preference?
Source: https://www.pcworld.com/article/524895/zune_hd_vs_ipod_touch_feature_smackdown.html
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Why Innovation on Entrepreneurial Marketing?
Entrepreneurship always involves innovation

Source: From Nagaruju and Reddy International Journal of Management, II & Engineering (2016)
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WHY WHAT HOW
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Business Model Canvas (BMC)
Business Model Canvas is a visual media

consisting of 9 building blocks that form your
business model, namely Customer Segments,
Value Propositions, Channels, Customer
Relationships, Revenue Streams, Key
Resources, Key Activities, Key Partnerships,
and Cost Structure.
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Business Model Canvas
Framework
KEY PARTNERS: 8 KEY ACTIVITIES: 7 VALUE PROPOSITION: 2 CUSTOMER 4 CUSTOMER SEGMENT:
1
RELATIONSHIP:
KEY RESOURCES: 6 CHANNELS: 3
COST STRUCTURE:
9 REVENUE STREAM: 5
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Business Model Canvas Consists of Nine Blocks
Customer Value Customer Revenue

Channels
Segment Proposition Relationship Streams
Key Key Cost

Key Partners
Resources Activities Structure
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WHY WHAT HOW
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Knowing and Collecting Nine Business Canvas Blocks
Avoid filling the business model

canvas blocks with assumptions. Fill
the blocks with data.
The left side is the blocks to form the The right side is the blocks to find
value proposition. the value proposition.
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Block 1: Customer Segment
Customer Segments are defined as

several groups of people or
organizations that the company
wants to reach and serve.
• Who is your target market?

• What customer segments does
the company currently have?
• What are their characteristics?
• What are their habits?
14
Determining Target Customers
Why Targeting?
THE CHARACTER OF
EACH SEGMENT IS VERY
DIFFERENT
COMPANY HAS
LIMITED
RESOURCES
Companies must allocate resources effectively and efficiently

to the right and potential segments.
Source: MarkPlus Analysis
15
Decide The Number of Segments to Be Served
What and how many segments to serve?
SINGLE SELECTIVE MARKET
SEGMENT SPECIALIZATION SPECIALIZATION
M1 M2 M3 M1 M2 M3 M1 M2 M3
P1 x P1 x P1 x
P2 P2 x P2 x
P3 P3 x P3 x
PRODUCT FULL MARKET
SPECIALIZATION COVERAGE
M1 M2 M3 M1 M2 M3
P1 P1 x x x
P2 x x x P2 x x x
P3 P3 x x x
Source: Rethinking Marketing, 2003. with MarkPlus Analysis
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Decide The Number of Segments to Be Served
SINGLE SEGMENT FULL MARKET COVERAGE
Suitable for
companies with
Suitable for
companies with undifferentiate
limited resources d marketing
and limited (focus on basic
capabilities.
consumer
needs).
PRODUCT SPECIALIZATION MARKET SPECIALIZATION SELECTIVE SPECIALIZATION

Suitable for
Suitable for
companies companies with
Suitable for that various
companies that
specialize in
specialize in resources and
certain risk
certain products.
diversification
market orientation.
segments.
Source: MarkPlus Analysis.
17
Block 2: Value Proposition
Value Propositions are defined as products

and services that create value for
particular Customer Segment.
• What is the best value offered to customers?

• Why should customers choose the value your
company offers over competitors?
• Which customer needs were met and what
problems were solved?
• What does your company offer to individual
segments?
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Value Proposition Formula
How is the performance How do you feel when

of the products/services you use the
offered? products/services offered?
Value Proposition = (functional benefit + emotional benefit)
price
The price paid by consumers for

the product or service sold
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Example of Benefits Provided Business
FUNCTIONAL
BENEFIT
Gojek, more than just a ride. Functional
Benefit: Convenience and Time-Saving.
This functional benefit of convenience and
time-saving resonates with many
Indonesian consumers who value
efficiency and productivity in their daily
lives.
EMOTIONAL
BENEFIT
SariWangi Tea's campaign "A Cup of Warmth
for You" focuses on the emotional benefit of
comfort and warmth that comes from drinking
a cup of tea.
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Block 3: Channel Building
Channels Building is defined as the
company’s way of communicating and
approaching customer segments to
deliver the Value Proposition.
• How to connect customers

with the value
proposition?
• How does your company
approach current
customers?
• How are distribution
channels integrated?
• Which distribution channel
is the most cost effective?
BLOK 3: CHANNEL BUILDING
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Build a Communication and Sales Channel With Omni
Communication
Channels:
TV Ads
Offline SEARCH EXPERIEN
OOH Ads
ONLINE CE
Google Ads
Online OFFLINE
Social Media
Sales Channel:
Offline
Direct Selling BUY BUY
Pameran OFFLIN ONLIN
Website Perusahaan E E
Online
E-commerce
WEBROOMING SHOWROOMING
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Block 4: Customer Relationship
Customer Relationships are defined as the

type of relationship a company builds
with a particular customer segment.
• What type of relationship does the

customer segment expect in each
target market?
• What is the current state of the
company's relationship with
customer segments?
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Activities Included in Customer Relationship
4 3
Get back the WIN Increase existing

customer that has GROW customer
been lost BACK purchases
1 2
Creating loyalty
Get (acquire) new
customers GET KEEP and retention of
existing customers
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Block 5: Revenue Stream
Revenue Streams represent the cash a

company generates from each customer
segment (costs must be deducted from revenue
to generate revenue).
• What products are customers currently

paying for?
• How does your company make money
from its current business model?
• How is sales revenue through various
channels
• affect the company's total revenue?
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Block 6: Key Resources
Key resources are defined as the most

important assets needed for business
processes to run.
• What resources does the company use

to provide value to its customers?
• What resources does the company use
in each?
• channel to generate income?
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KINDS OF KEY RESOURCES
1
Example:
Physical Facilities, buildings, vehicles, machines, systems, and distribution networks.
2
Example:
Intellectual Trademarks, proprietary knowledge, patents and copyrights,
partnerships, and customer databases.
3
Example:
Human Salespeople, personnel, managers, cleaning services, and more.
4
Example:
Financial Cash, lines of credit, or pools of stock to hire key employees.
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BLOK 7: KEY ACTIVITIES
Key Activities are defined as the most

significant activities that must be completed
by the organization in order for business
processes to run smoothly.
• What key activities does the

company need to create value?
• What are the key activities the
company performs in operating
distribution channels, customer
relationships and revenue streams?
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KINDS OF KEY ACTIVITIES
1
PRODUCTION
Example:
Operational Activities, Planning/Development of Programs and Strategies, Implementation of Activities.
2
PROBLEM SOLVING
Example:
Training, Workshop, and Consultation.
3
PLATFORM/NETWORK
Example:
Advertising, Endorsement, Cooperation.
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BLOK 8: KEY PARTNERS
Key Partnerships are defined as the

network of suppliers and partners that
make a business work.
• Which cooperative and supplier

relationships are important to the
running of your business?
• Who do you create value with?
• What motivates your cooperative
relationship?
BLOK 8: KEY PARTNERS
30
Partnership Relationship In General
1
Cooperative relationship
Example:
Corporate Cooperation with Television Media to increase Image, Corporate Cooperation with Star Hotels to improve branding.
2
Buyer-Supplier Relationship
Example:
Company Cooperation with suppliers/sanitary needs, Corporate Cooperation with non-Employee Agents.
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BLOK 9: COST STRUCTURE
Cost Structure is defined as all costs

required to run a business.
• What are the most important and

biggest costs for your business?
• What resource is the most
expensive?
• What activity is the most expensive?
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FILL IN YOUR BUSINESS MODEL CANVAS ANALYSIS ACCORDING TO THE ORDER OF NUMBER
EXAMPLE: CULINARY BUSINESS CHICKEN MUSHROOM
NOODLES

1
RELATIONSHIP:
1. Supplier of food 1. Cooking process 1. Building
1. Cleanest mushroom
ingredients for 2. Packaging process engagement on
chicken noodle,
cooking 3. Create content to Instagram 1. Adults
ready to serve and
2. Supplier of sell 2. Teenager
ready to deliver.
takeaway places to 3. Children
2. Restaurant dining
eat. KEY RESOURCES: 6 room that looks CHANNELS: 3
1. Reliable chef clean and in
1. Go-food
2. Millennials chef accordance with
2. Stall
3. shop room health protocols
3. Facebook and WA
4. Complete kitchen
and kitchen
utensils
COST STRUCTURE:
9 REVENUE STREAM: 5
1. Employee costs 1. Mushroom chicken noodle package – best seller
2. Electricity, water, and credit costs 2. Snack box package
3. Delivery packaging costs
33
Homework
1
RELATIONSHIP:
KEY RESOURCES: 6 CHANNELS: 3
COST STRUCTURE:
9 REVENUE STREAM: 5
THANK YOU

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Paradigm of

Innovation and Improvement

Create a business visualization of Finding areas of improvement so Finding alternative business

Entrepreneurship always involves innovation

Business Model Canvas is a visual media

KEY RESOURCES: 6 CHANNELS: 3

Customer Value Customer Revenue

Key Key Cost

Avoid filling the business model

Customer Segments are defined as

• Who is your target market?

Companies must allocate resources effectively and efficiently

PRODUCT SPECIALIZATION MARKET SPECIALIZATION SELECTIVE SPECIALIZATION

Value Propositions are defined as products

• What is the best value offered to customers?

How is the performance How do you feel when

Value Proposition = (functional benefit + emotional benefit)

The price paid by consumers for

Source: MarkPlus Analysis

• How to connect customers

Customer Relationships are defined as the

• What type of relationship does the

Get back the WIN Increase existing

Revenue Streams represent the cash a

• What products are customers currently

Key resources are defined as the most

• What resources does the company use

Key Activities are defined as the most

• What key activities does the

Source: MarkPlus Analysis

Key Partnerships are defined as the

• Which cooperative and supplier

BLOK 8: KEY PARTNERS

Source: MarkPlus Analysis

Cost Structure is defined as all costs

• What are the most important and

Source: MarkPlus Analysis

KEY PARTNERS: 8 KEY ACTIVITIES: 7 VALUE PROPOSITION: 2 CUSTOMER 4 CUSTOMER SEGMENT:

KEY RESOURCES: 6 CHANNELS: 3

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