MOE - Business Model Canvas
Summary
TLDRThis lecture introduces the Business Model Canvas (BMC), a tool for entrepreneurs and business owners to outline their business concept comprehensively. The BMC is a single-page document divided into nine blocks, covering aspects like customer segments, value propositions, channels, key activities, resources, partners, cost structure, and revenue streams. The lecture guides viewers through understanding each block's purpose and how to fill them out effectively, emphasizing the importance of specificity and coherence in the business model.
Takeaways
- 📈 The Business Model Canvas (BMC) is a strategic tool used to outline a business concept comprehensively.
- 🎯 The BMC has three main objectives: to identify the BMC, describe it in each item, and understand how to write one for your business.
- 📝 The BMC is designed to fit on a single sheet of paper, making it a concise and clear overview of a business.
- 🤝 It helps in understanding a business's competitive advantage, value creation, delivery, and capture mechanisms.
- 🚀 The BMC is beneficial for highlighting a business roadmap, reflecting strategic thinking, and connecting ideas with processes.
- 👥 'Customer Segments' is the starting block of the BMC, focusing on identifying and detailing potential customer groups.
- 💡 'Value Propositions' is the central block, emphasizing the value a product or service offers to customers.
- 🔗 'Customer Relationships' deals with how a business interacts and maintains relationships with its customers.
- 📍 'Channels' describes where and how customers find and engage with a business.
- 🔑 'Key Activities', 'Key Resources', and 'Key Partners' are operational blocks that define the actions, assets, and collaborations necessary for business operations.
- 💸 'Cost Structure' and 'Revenue Streams' are the financial blocks, detailing the expenses and income sources of the business.
Q & A
What is the main topic discussed in week six of the course on managing, organization and entrepreneurship?
-The main topic discussed is the business model canvas.
What are the three main objectives of the business model canvas chapter?
-The objectives are to identify the business model canvas, describe it in each item, and understand how to write one for your own business.
What does BMC stand for in the context of the lecture?
-BMC stands for Business Model Canvas, which is a tool to provide a clear overview of a business on a single sheet of paper.
Why is the business model canvas important for businesses?
-It helps entrepreneurs or business owners outline a comprehensive picture of the business concept, understand the business's competitive advantage, and identify areas for improvement.
How does the business model canvas help in strategic thinking?
-It highlights the business roadmap, accurately reflects strategic thinking, and connects ideas with the process to turn them into a business.
What are the nine blocks of the business model canvas?
-The nine blocks are customer segments, customer relationships, channels, value propositions, key activities, key resources, key partners, cost structure, and revenue streams.
Why should you start with customer segments when writing a business model canvas?
-Starting with customer segments helps to understand who needs the product and allows for a more detailed and specific approach to serving the needs of different customer groups.
What is the purpose of the value propositions block in the business model canvas?
-The value propositions block outlines the products and services offered to customers and how they solve their problems or fulfill their needs.
How can you identify the value of your product in the value propositions block?
-You can identify the value by listing product features, benefits, and advantages, and focusing on how these aspects meet the needs of your customer segments.
What does the customer relationships block focus on?
-It focuses on how a business interacts with its customers to maintain relationships, including ways to attract new customers and encourage repeat purchases.
Why are channels important in the business model canvas?
-Channels detail where and how customers find and engage with the business, which is crucial for effective communication and distribution of value propositions.
What are key activities, and how do they relate to the business model canvas?
-Key activities are the actions a business must perform to run operations and produce value propositions. They are essential for understanding the daily operations and identifying new activities or solutions to serve customers.
What are key resources, and how do they fit into the business model canvas?
-Key resources are the necessary tangible assets, such as materials, people, knowledge, or intellectual property, required to perform key activities and create value propositions.
Who are key partners in the context of the business model canvas?
-Key partners are external companies or parties that support and strengthen business operations, helping to increase efficiency and productivity.
What does the cost structure block represent in the business model canvas?
-The cost structure block represents the monetary costs of operating a business, including expenses like raw materials, labor, maintenance, rent, insurance, taxes, and marketing.
How is the revenue streams block different from other blocks in the business model canvas?
-The revenue streams block is focused on the income generated by the business, including various sources such as service fees, product sales, rents, and license fees.
Outlines
📈 Introduction to Business Model Canvas
The lecture introduces the concept of the Business Model Canvas (BMC), a tool designed to help entrepreneurs and business owners outline a comprehensive view of their business concept. The BMC is a single-page document divided into nine blocks, each representing a key aspect of the business. The lecture aims to teach students to identify the BMC, describe each item, and understand how to write a BMC for their own business. The speaker emphasizes the importance of the BMC in understanding a business's operations, competitive advantages, and areas for improvement.
👥 Focusing on Customer Segments
This section delves into the first block of the BMC, 'Customer Segments,' which identifies potential customer groups. The speaker advises specificity in defining customer segments, suggesting that businesses should not aim at 'everyone' but rather focus on specific, similar groups based on demographics, interests, and behaviors. The lecture provides an example of segmenting a student body by gender and sexual orientation to tailor the business's offerings to the needs of these groups. The speaker also recommends focusing on one main customer segment to ensure the business can effectively deliver value.
💡 Crafting Value Propositions
The lecture continues with the 'Value Propositions' block, emphasizing the importance of understanding how a business's product or service can solve customer problems. The speaker suggests listing product features, benefits, and advantages to articulate the value offered. Features describe the product's characteristics, benefits explain the positive experiences customers gain from using the product, and advantages highlight how the product outperforms competitors. The speaker uses a deodorant product as an example to illustrate how to identify and communicate the value proposition effectively.
🤝 Establishing Customer Relationships
The 'Customer Relationships' block is explored, focusing on how businesses interact with customers to maintain relationships. The speaker advises considering promotional strategies and customer engagement methods to attract and retain customers. The section emphasizes understanding customer interactions from their perspective and establishing relationship types that cater to specific customer segments. The goal is to create a strategy that encourages repeat purchases and fosters a community around the business.
📡 Identifying Channels to Reach Customers
The lecture moves on to the 'Channels' block, which details where and how customers find and interact with the business. The speaker highlights the importance of choosing the right communication and distribution channels based on customer characteristics and business nature. The section encourages businesses to consider the customer journey, from initial awareness to purchase and product delivery, to determine the most effective channels for reaching their target audience.
🔧 Key Activities, Resources, and Partners in Business Operations
This section discusses the operational aspects of the business, starting with 'Key Activities,' which are the actions a business must perform to run and produce value propositions. The speaker suggests listing daily operations and tasks that contribute to the business's core functions. 'Key Resources' are then explored, which include physical, intellectual, and human resources necessary for business operations. Lastly, 'Key Partners' are defined as external companies or parties essential for business success, emphasizing the importance of collaboration in business operations.
💰 Understanding Cost Structure and Revenue Streams
The lecture concludes with the financial aspects of the BMC: 'Cost Structure' and 'Revenue Streams.' 'Cost Structure' refers to the monetary costs of operating a business, including expenses like raw materials, labor, and marketing. The speaker advises businesses to identify all costs to understand the financial implications of operations. 'Revenue Streams' are the sources of income for the business, which can come from various products or services. The speaker encourages businesses to consider different revenue models and payment methods that are convenient for customers.
Mindmap
Keywords
💡Business Model Canvas
💡Customer Segments
💡Value Propositions
💡Channels
💡Key Activities
💡Key Resources
💡Key Partners
💡Cost Structure
💡Revenue Streams
💡Customer Relationships
Highlights
Introduction to Business Model Canvas (BMC) as a tool for business overview.
Three main objectives of the chapter on BMC.
BMC helps outline a comprehensive business concept.
BMC details business operations, competitive advantage, and value creation.
BMC is a one-page document collecting key business information.
Benefits of using BMC: strategic clarity and business roadmap.
BMC's nine blocks detailed: customer segments to revenue streams.
Starting with customer segments for an effective BMC.
Defining customer segments for targeted business value.
Writing detailed customer segments to understand customer needs.
Value propositions as the core of BMC.
Tips for writing value propositions: features, benefits, and advantages.
Differentiating product features from benefits and advantages.
Customer relationships block focuses on maintaining customer interactions.
Channels block details where customers find and engage with the business.
Key activities block lists essential business operations.
Key resources block identifies necessary physical and intellectual assets.
Key partners block outlines external support for business operations.
Cost structure block focuses on the monetary cost of operating the business.
Revenue streams block identifies how the business generates income.
Drafting the nine BMC blocks provides a comprehensive business view.
Example of a hotel business model canvas.
Transcripts
[Music]
this is week six of managing
organization and entrepreneurship
the topic that we will discuss today is
about business model canvas
in this page you will see that there are
three main objectives of this chapter
after you finish the lecture today first
you will be able to identify the
business model can was and it's
important for business
second you will be able to describe
business model can watch in each item
and third you will understand how to
write a business model can watch for
your business
when we start the lecture you can hear
that i mentioned business model can
watch many times and for now you might
have a question what is business model
can wise let's get to know it together
in this chapter business model canvas is
a tool to get a clear overview of your
business in a single sheet of paper we
call business model can watch shortly as
bmc which come from the first letter of
each word business model can wash is
designed to help entrepreneurs or
business owners outline a big picture of
the business concept in all-round
aspects it is a tool that provides the
details of a business which helps us
understand what business is doing what
is a business competitive advantage
how an organization creates deliver and
captures value and in what way the
business needs to improve
in conclusion business model canvas is
one page document that collects
important information about the business
why should we use a business model can
was what is the benefit of building a
business model can wash business model
can wash is a handy and quick way to
highlight your business roadmap not only
will it accurately reflect your
strategic thinking and your company's
current reality
but it also connects the idea with the
process to make it into a business
in addition it allows everyone to get a
clear idea of what the business will
likely be
if you move on to the next page you will
see what canvas looks like in the sheet
of paper you can see that it divided
into nine blocks each block is about the
ally of business which are one customer
segments
two customer relationships
three
channels
four
value propositions
five key activities
six
key resources
seven
key partners
eight cost structure
and the last one nine revenue streams
i will start explaining each block to
you first
after that i will provide an example on
how to write it
in order to write an effective business
model can wash i recommend that you
start with customer segments
which is the block on the right side of
canvas
customer segments refer to a group of
people who can be your customer what you
need to write in this block is who needs
your product
do not write everyone in the customer
segments because
not everyone can be your customer just
like the word segment you should specify
details of your customer as clearly as
possible and group them you should
divide a customer base into groups of
individuals that are similar in specific
ways such as their age range their
gender their income range their
interests their pain points or their
behavior
with clear specific customer segments we
will be able to understand the needs of
customers then we can provide the value
of the product to serve them
for example based on the students in
this course i might divide all of you by
gender segment
with this segment base i can divide all
students in this course into a group of
male students a group of female students
and a group of lgbtq plus students as i
mentioned above in order to write
effective customer segments in business
model can watch it would be easier to
focus on one main customer as your
business target
let's say that with all these three
segments
i might say that my business will focus
on a group of female students then i can
focus on how to provide a product's
value to certify my core customer which
is a group of female students
when you write the information in
customer segments the more details you
write the better you can understand your
customers
therefore i recommend that when you fill
in the information in this block you
should identify the customer's general
demographic what do your customers like
or dislike their lifestyle their
personality their geographic area and
their behaviors moreover you should look
into the segments that provide most
revenue to your business
after you settle with customer segments
i recommend you to focus on value
propositions which is in the center of
business model can watch value
propositions are the sum of its worries
product and service that you offer to
the customers it is about how your
business or product can certify your
customer therefore we could state that
to fill in the value propositions you
need to check out your customer segment
and figure out how your product can
solve that problem in summary when you
write the details in this block think
about the value of your product that you
can offer to your customers
what drives customers to shoot our
products and service
for example
how your product can solve their
problems
i will provide tips for you
a good way to write value proposition is
listing product features
product benefits and product advantages
product feature refer to a
characteristic attribute that a product
or service has it is simple facts of a
product design statement function
or the explanation on what the product
is made of for example
the deodorant product is made of plastic
its open lid is at the bottom
products benefits describe why a
customer would use a product in the end
these could be point out by details of
the inside ingredients or elements of
the product with the explanation on
positive experience the customer may get
after using your product so you need to
check the material or ingredients in use
to produce the product and then identify
what is so good about these practical
ingredients
for example
these deodorants has orange sty dress
and orange leaf extract which is known
for antioxidants properties and high
vitamin c which will make your skin
moisture eliminate unpleasant smell and
brighten your skin
next products advantages
these refers to how the product helps
the customer or the good point of the
product that is better than competitors
you can connect the idea with the
products feature and identify good
points the customer will gain from it
for example the deodorants products
provide 48 hours of antibacterial
why are the brands might be able to
provide only 12 hours or 24 hours this
makes the product in an advantageous
position when compared with others
when you prepare value propositions
please think about a product features
products benefits and products
advantages
it will help you simply specify your
product value that you offer to your
customer
most importantly please always remember
that these values should certify the
need of your customer
also
in preparing variable positions
it would be based if you provide points
of different and points of parity which
are the aspects of your product that
differentiate you from your competitors
and the aspects of your product that
should have in common with your
competitors respectively
as the example above the deodorant
product provides 48 hours of
antibacterial
this is a point of difference which
makes your product different from your
competitors on the other hand
eliminating unpleasant smells is a point
of parity which is basic must-have if
you don't have this value the customer
might not buy your product because it
cannot certify basic needs for them next
let's move on to customer relationships
customer relationships blog is how a
business interacts with its customer
in order to maintain the relationship
with them it focuses on how we get our
customers it is about the way to attract
new customers and keep a relationship
with them to make them come back and
repurchase a helpful step to fill in
this block is to form the details on how
customers interact with your business
to fill in this block you might need to
think about promotion or any idea to
make the customer first come to use your
product
repeat purchase your product again and
again
and word of mouth to make the customer
engage with the business more
such as discount for the first time
purchase
coupon
after sales care cost center or special
discounts however
please note that when you decide
customer relationships you have to look
at the customer's point of view primary
so you should establish types of
relationships
with specific customer segments in mind
channel's block is detailed about where
the customer finds our business it is
about where will your customer find us
in this section you might need to ask
yourself how do you communicate with
your customer and how do you deliver the
value propositions
channels could be online channels or
offline channels depending on who your
customers are
so it is very important for you to look
into the character of your business and
xmi your customer
in order to explore which communication
channel and distribution channels are
the most convenient the most effective
and suitable for the customer
for example if your customer segment is
young people age around 18 to 25 who
lived in the city with inside research
we found that online social media
platforms are the media platform that
they use the most
so
we might focus on using facebook twitter
and instagram as channels to connect and
reach them for both communication and
distribution if you are struggling with
the way to fill in this section
you might think about the journey that
customer might take along the way to
find your business
such as
the channel that customers take in order
to get to know about the business
the channel does customer take in order
to find more information about the
business
the channel that customers take in order
to make a purchase
or
the channel that customer receive the
product
and this is what you should write in
channels block of business model cambras
on the left side of canwas
there are three blocks which are key
activities key resources and key
partners
this section focuses on the operation of
your business
let's start with key activities key
activities block is the list of
activities that your business has to do
by themselves in order to run the
business this section focuses on what
actions do your business do every day to
run the business
and to produce value propositions
therefore we could say that it is about
what do we need to do
for example if you are running a coffee
shop will you prepare the coffee bean
and grow coffee plants will you highways
the coffee bean will you do the
production will you deliver a product to
the customer will you do research to
develop a new product
will you design product packaging
will you manage your business facebook
page
if yes
then you need to fill those activities
in this blog
by preparing the details in this blog it
will help you look through your business
activity which will help you in idea
creating for new activity or new
solutions to serve the customer
next
key resources
what is key resources
basically key resources are practical
resources
it is about what do we need to have
when we talk about key resources it
could refer to physical resources
such as material
ingredients
medicines
intellectual property people
knowledge
or any resources that we are supposed to
have in order to achieve the key
activities
for example if you are running a coffee
shop your business key resources might
be store space people ask stuff
internet connection
car oven electric city baking
ingredients
coffee making ingredients
coffee making machines roast coffee
machines
pots
tables and chairs
key resources block will be easy to fill
in if you have clear details in key
activities and value propositions
to complete this section
you should look back into key activities
and value propositions
then
list resources that are need for
creating the value of your business
operation
when we write this section we will know
what resources that we already have and
what resources we need to find more
key partners blog is about who do we
need to work with key partners can be
defined as the partners of your business
that you cannot run the work without
them it is a list of other external
companies or parties who will support
and strengthen your business operation
that you need to work with
so
we could say that it is the section
about external companies or parties that
business needs to depend on
in summary key partners are the partners
who will help the business increase
efficiency in business process to fill
in this block you should list external
parties who help you run the business
operation
for example think about choppy alibaba
or ebay which is an e-commerce platform
that key partners are the delivery
companies these delivery companies will
help shopee alibaba or ebay in the
productivity operation for local
deliveries of purchased goods
keep moving on forward to the bottom
block in the canvas
which are cost structure and revenue
streams these two blocks are related to
finance i will explain what it is one by
one
let's start from the block on the left
side
cost structure
cost structure is the monetary cost of
operating as a business this block
focuses on what kind of expense that
cost you
and how much is it it is about all costs
incurred to operate a business
examples of business costs are the cause
of water
the cost of electricity
because of raw materials because of
labor
because of machine maintenance
rain costs
insurance costs
taxes
or marketing costs
to fill in this section
you might need to ask yourself
are there any cost or expense to run a
business
if yes
what is it
then fill those expense in the cost
structure block
the last block in the business model
canvas that we will talk about is
revenue streams
revenue streams refer to the money that
you generate it is about what will we
get paid
also the revenue of your business that
you get paid could be more than one type
of product or more than one activity
there are many type of revenue that your
business can generate such as
one revenue from service fee
to
revenue from selling products
three
revenue from the rent
and four revenue from license fee
for example
if you run the coffee shop you might get
paid from the product selling coffee
cake bakery
milk roast bean coffee and you might
also get pay from service fee if you
charge them more money in case they
would like to use the individual meeting
room at the coffee shop so in this blog
you have to figure out how we can make
money at least what you get paid also it
would be good if you are able to specify
deeply to the extent which form of
payment method is convenient for the
customer such as credit card payment
cash or bank transfer drafting these
nine business model can watch blocks
will help us think all router and get
the picture of business
we could identify the point to improve
and identify the focus point for
business easier and suitable for the
changes
so far i believe that now you understand
what business model can watch is and
understand how to write
i will provide an example in the next
page
remember that the idea in the business
can was should be coherent with each
other
this is an example of the hotel business
that i decide as an idea to show you as
an example on what it looks like if you
finish drafting the canvas
[Music]
do
[Music]
you can find more examples at the link i
provide for you here
you
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