Download - Business Model Canvas - BMC
Eng. Mohamed AmeenMarketing Consultant
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Session Agenda:
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2. What is the Business Model Canvas - BMC?
3. Why shall we use BMC?
4. How to create BMC for my business?
5. Practical workshop.
1. Why do we need planning?
Why do we need
Planning?
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Copyrights © Mohamed Ameen 2014
• A plan will help you determine whether
your business idea is feasible.
• It will help you convince investors your
business is a reliable proposition.
• A plan is like a map. When following a plan, you can always see how much you have progressed towards your goal.
• It will allow you to come up with a
comprehensive strategy on how you will
deal with various scenarios.
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30% of entrepreneurs
fail in their startups
due to
lack of planning
What is BMC?
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• The Business Model describes the rationale of how a business creates, delivers, and captures value.
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• It covers the four main areas of a business: customers, offer, infrastructure, and financial viability.
Why shall we use
BMC?
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Copyrights © Mohamed Ameen 2014
• BMC forms a solid base for the Business Plan.
• BMC filters our ideas before planning.
• BMC provides a good overview about our idea.
How to create BMCfor my business?
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BMC is structured around 9 building blocks:
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1. Customer Segments.
2. Value Proposition.
3. Channels.
4. Customer Relationship.
5. Revenue Streams.
6. Key Resources.
7. Key activities.
8. Key Partnerships.
9. Cost Structure.
Copyrights © Mohamed Ameen 2014
Copyrights © Mohamed Ameen 2014
BMC’s 9 building blocks
Who do we target?- Mass markets.- Niche markets.- Diversified markets.- Multi-sided markets.
The Customer Segments Building Block definesthe different groups of people or organizations we aim to reach and serve.
Copyrights © Mohamed Ameen 2014
BMC’s 9 building blocks
What do we offer?- Operational Excellence
- Performance Superiority.- Customer Intimacy.
The Value Propositions Building Block describesthe bundle of products and services that createvalue for a specific Customer Segment.
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BMC’s 9 building blocks
Channel Phases:- Marketing.
- Purchase.- Delivery.- After sales.
The Channels Building Block describes how acompany communicates with and reaches itsCustomer Segments to deliver the Value Proposition.
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BMC’s 9 building blocks
Customer Relationship Phases:- Customer acquisition.
- Customer retention.
- Boosting sales.
The Customer Relationships Building Blockdescribes the types of relationships a companyestablishes with specific Customer Segments.
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BMC’s 9 building blocks
Revenue streams:- Asset sale.- Usage.- Subscription.- Renting.- Licensing.- Brokerage.- Advertising.
The Revenue Streams Building Block representsthe cash a company generates from each CustomerSegment.
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BMC’s 9 building blocks
Key Resources categories:- Physical.- Intellectual.- Human.- Financial.
The Key Resources Building Block describesthe most important assets required to make abusiness model work.
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BMC’s 9 building blocks
Key Activities categories:- Production process.- Problem solving.- System development.
The Key Activities Building Block describesthe most important things a company must doto make its business model work.
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BMC’s 9 building blocks
Types of Key Partnerships:- Joint Venture.- Strategic alliance.- Strategic partnership.- Buyer-Supplier relationship.
The Key Partnerships Building Block describesthe network of suppliers and partners that makethe business model work.
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BMC’s 9 building blocks
Elements of Cost Structure:- Fixed cost.- Variable cost.- Economies of scale.- Economies of scope.
The Cost Structure describes all costs incurred tooperate a business model.
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BMC’s 9 building blocks
CustomerSegments:
whom are weCreatingValue for?And who areour mostImportantcustomers?
CustomerRelationships:How could wemake ourCustomersloyal to us??
Channels:
How will wereach ourcustomers?
Value Proposition:What value do we deliver to the customer?Which one of our customer’s problems do we solve?What bundles of products and services are we offering?
Key activities:What KeyActivities doour ValuePropositionsrequire?
KeyResources:What KeyResources dowe need?
Key Partners:Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
Revenue Streams:How much doeseach Revenue Stream contribute to overall revenues?
Cost Structure:What are the most important costs inherent in our businessmodel? Which Key Resources are most expensive? WhichKey Activities are most expensive?
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Workshop time!