Business Model Canvas - BMC

Eng. Mohamed AmeenMarketing Consultant

Copyrights © Mohamed Ameen 2014

Session Agenda:

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?

• 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.

30% of entrepreneurs

fail in their startups

due to

lack of planning

What is BMC?

• The Business Model describes the rationale of how a business creates, delivers, and captures value.

• It covers the four main areas of a business: customers, offer, infrastructure, and financial viability.

Why shall we use

• 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?

BMC is structured around 9 building blocks:

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.

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.

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.

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.

Customer Relationship Phases:- Customer acquisition.

- Customer retention.

- Boosting sales.

The Customer Relationships Building Blockdescribes the types of relationships a companyestablishes with specific Customer Segments.

Revenue streams:- Asset sale.- Usage.- Subscription.- Renting.- Licensing.- Brokerage.- Advertising.

The Revenue Streams Building Block representsthe cash a company generates from each CustomerSegment.

Key Resources categories:- Physical.- Intellectual.- Human.- Financial.

The Key Resources Building Block describesthe most important assets required to make abusiness model work.

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.

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.

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.

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?

Workshop time!

We are done!

Thanks

Eng. Mohamed Ameen

• E-mail:

mohamed.a.ameen93@gmail.com

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