CHAPTER 4-ii

THE BUSINESS MODEL CANVAS

 Business Canvas- What is it?
 A strategic management template for
developing new or documenting
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?
1. Explain how a business generates income and profits from
operations.
2. Help entrepreneurs identify activities, channels and ways to
generate income.
3. Basics of business - explaining to whom goods or services are sold
and how to make a profit.
4. Basics of business planning and strategic planning.
5. Explain the business position in the production chain.
6. Able to identify the type of business and facilitate business
management.
7. To understand the external influences that affect the decision-
making process of social investors who will be using state funds to
shape their market place.
8. To be able to appreciate the unmet social need that needs to
addressed.
9. To be able to tell a compelling story about the social impact the
market it operates in, their financial performance and their
implementation plan.
Business Plan Vs Business Model Canvas
How does it look like?
 Components of BMC
• Customer segments (Pain)

Customer segments are the people and/or organizations for whom

you’re creating value.
For example , Gsihat may have a number of customer
segments but the most important is the end user – the person at
risk for Type 2 diabetes.
When you’re building a business in healthcare, you have to
think about a lot of customer segments and end users.
For a behaviour change company, most important has to be
the person going through it. The company’s end users tend to be
30 to 55 years old, slightly more likely to be female, and
End users can also pay for the service, he added, though that’s
not the primary model.
Gsihat’s other customer segments include self-insured employers,
providers (such as integrated delivery networks) and small business
and individual insurance plans.
 Components of BMC
• Value propositions

For each segment, you have a value proposition. These

are the bundles of products and/or services that create
value for your customers. Example;
The value we create – through working to improve health
and reduce healthcare costs – is generally the same for
each customer group.
We also offers self-insured employers a benefit in
productivity economics. “People with diabetes tend to miss
significantly more work than others without diabetes,” .
 Components of BMC
Channels

Channels are the touch points through which you’re interacting with
customers and delivering value.

Your channels are entirely direct for now. The company has a sales
team that reaches out to employers, plans and providers.
 Components of BMC
Customer relationships

Customer relations are the types of relationships you’re

establishing with customers and how you’re acquiring and retaining
them.

We meet people in conferences, due to direct customer relations

techniques.

At the company’s early stage we get introduced through advisers

and friends.
Components of BMC
• Revenue streams

Revenue streams are the pricing mechanisms through which your

business model captures value.
Gsihat may have two revenue streams: business-to-business and
direct-to-consumers.
The larger of the two is business-to-business, including
employers, integrated delivery networks and insurance plans.
These customers are on a milestone-based pricing model (being
charged more when participants achieve successes with Prevent).
Direct consumers, on the other hand, pay the company monthly
via credit card.
Components of BMC
• Cost Structures

Cost structures are the most important costs inherent

in your business model.
The most important cost for your service maybe
delivering its service. This includes the company’s
mailings, resources and health coaches.
Those [costs] variable in nature may be paid with
volume. As we grow the business, those grow.
Other costs for the company are more fixed,
growing less as the business grows.
 Components of BMC
Key resources are the aspects
• Key resources
that are indispensable in your
business model, so you can
describe the infrastructure you
need to create, deliver and
capture value.
The No. 1 ingredient, is talent
resources, namely designers
and engineers, to build the
company’s products.
The company’s other key
resources, include eventually
building a large direct sales
force, keeping up with
intellectual resources in terms
of trademarks and copyrights,
and financial resources.
 Components of BMC
Key activities
Key activities are the things your business needs to be
able to perform well.
On the product side, we can focuses on two key
activities: making an interesting and attractive program that
people want to use and designing an experience that
delights. The company also spends time learning about
how its customers use the program, watching them with the
product and understanding why they leave. You want to
establish a constant iteration cycle in learning as people go
through your program.
Key Activities
When it comes to sales-related activities, a
healthcare company needs handling more
stakeholders than are typical in other industry
verticals.
It’s important to spend time understanding how those
stakeholders fit together around your business. A
key activity could be to orchestrate relationships
between these different stakeholders.
You may need to map out how the company’s
product touches each one, the pressures and
emotions of each, and how each wants to be viewed
by customers.
 Components of BMC
Key partners

Key partner are with those who can help you leverage
your business model. You won’t own all the key resources
yourself or perform all the key activities.
Early key partners included self-insured employers,
providers and insurance plans.
Distributors and suppliers are also key partners . These
include partners that help the company with its technology,
mailings and other initiatives.
 How to use BMC?
• Participants are group in team of 6-8 members
depending on the number of participants.
• Each group will discuss the 9 items in the BMC.
• Members will present the;
 Key Partners
 Key activities
 Key resources required
 Value propositions
 Customer segments
 Customer relationships
 Channels
 Cost structures
 Revenue streams
 Business canvas
Example of BMC
Key Partners Key Activities Value Propositions Customer Customer
Relationships Segments
1.Module preparation 1. Youth
1. HUKM -Social business skills -Resource Centre Setup
2. HOSPIS MALAYSIA -Specific skills
-Certified by Department of UKM-CASB GSihat
3. KK CHERAS training
Skills Development, COMMUNITY
4. DBKL (Jabatan -IPR for
modules Ministry of Human 1.Youth(students/un-
Perancang Bandar,
2.Approval from relevant Resource employed youth)
Jabatan
authorities -Employment/Career 2. Ageing population
Pembangunan
3.Household survey development 3. Care giver
Komuniti)
4.Mapping and layout of location 2. Ageing population
5. Masjid Cheras 5.Incorporation of company -One Stop Centre (OSC) INDUSTRY
6. Bomba* 6.Training certification -Resource centre, skill 1.Government
7. Department Of Skills (endorsement by relevant training (emotional, Channels 2.Corporations
Development agencies)
physical fitness & social
8. Welfare Department 7.Business development
8.Focus group workshop support) 1.Flyers
9. PPZ Selangor
9.Sponsorship and tax -Health screening 2.Brochures
10. Persiap
exemptions incentives -Counselling 3.Campaigns
11. LPPKN
10.Website development & IPR -Homecare
12. Frham 4.Retail outlets
3. Care giver
13. Ppppm/Fssk 5.Newspapers
-Resource Centre
14. Nursing Homecare 6.Social media
-Certified by Department of
15. NGO 7.Bulletin
Skills Development,
16. Klinik Guaman Ukm
Ministry of Human
17. Ukpk Ukm
Resource
-Employment/Career
development

Key Resources
1.Space
2.Experts
3.Module writers
4.Trainers
5.Research assistants
6.Community heads
7.Gatekeepers
8.Transportation & lodging
9.ICT, appliances,
 Thank You

THE BUSINESS MODEL CANVAS