Intro To BMC Sept2019 WideScrFrmt Handoutformat

10/01/2019
INTRODUCTION TO THE
BUSINESS MODEL CANVAS (BMC) FOR Welcome and Thank You!
NPO’S
E.M. Erasmus, MA
September 2019
INTRODUCTION E.M. ERASMUS, MA

Part-time lecturer at UA:
Faculty for Acc., Finance & Marketing:
• Management Accounting, Operations Management,
Management in SME
Faculty of Arts & Science:
• OGM (Economics & Finance, BP&P)
• SW&D (Social Entrepreneurship)
Full-time executive at Free Zone Aruba:

Head of Operations
Part-time entrepreneur: consultant / trainer
Copyright © 2019 by E.M. Erasmus. Erasmus Consulting & Training. All rights reserved. Copyright © 2019 by E.M. Erasmus. Erasmus Consulting & Training. All rights reserved.
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10/01/2019
E.M. ERASMUS, MA Outline

• General theory of the Business Model Canvas
Background & Education: Professional fields:
• Accounting & Finance • Accounting & Control
(BMC)
• Treasury & Risk Management • Treasury • Building blocks of the BMC
• Management and Organization • Financial Management
Sciences • Operations • BMC Examples
• International Project Management • Entrepreneurship
• Advantages/disadvantages BMC
• Key takeaways
This session is useful if your organization

is…
• Evaluating its programs • Adjusting to increased
• Expanding or reducing its costs or risks
scope of services • Assessing its impact and
• Updating its operating measurements
procedures
• Reviewing its target client
• Renewing its funding segments
methods and sources
• Adopting new technologies • Adapting to new
or processes opportunities
• Reframing its value • Restructuring its team
proposition • Working to stay relevant
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All successful organizations are built

upon a clear and solid business model Business model… What’s your
your
…what’s
Cool product business Nice presentation
features but…
business model?
model? so far, but…
Mission-driven, “helping” oriented

“You can’t call it a organizations providing mission-critical
business until services to the clients and communities
you’ve figured out they serve also have a ‘business’ model
its business
model”
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What is a business model? Value

A framework for finding a systematic way In the context of a business model,
• VALUE refers to:
to unlock long-term value for an • The extent to which a good or service is perceived by its
customer to meet his or her needs or wants, measured by the
organization while delivering value to customer’s willingness to pay for it.
customers and capturing some of that
value through monetization strategies.
Few companies understand their existing

Business Model business model well enough….
• A business model isn’t just about how an organization

makes money…
• But also the kind of benefits and impact it is able to
create for its users
• The distribution networks it is able to tap into, and
• The key partnerships an organization can leverage on.
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Risky… Non-Profit Organizations (NPOs)

• Not knowing why customers find your value • Professional values and practices
proposition interesting • Accountability and transparency of activities
• No clear overview of how your organization operates • Process improvement
and if the operations can be sustained in the long- • Output (result-based) financing
term… • Social impact and legitimacy
• Difficulty in understanding the consequences of
changes made in your organization’s strategy
From inputs to impacts… Business Model Canvas

The long-term developmental results at a societal level
What we aim to
that is the logical consequence of achieving specific
outcomes
Impacts change/improve
The medium-term results for specific

beneficiaries that are a logical consequence of
achieving specific outputs
Outcomes What we wish to achieve
The final products (goods and services) What we produce

produced for delivery Outputs and deliver
The processes or actions that use a

range of inputs to produce the desired
outputs and ultimately outcomes
Activities What we do
The resources that What we use to

contribute to the production
and delivery of outputs
Inputs do the work
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Business Model Canvas Business Model Canvas

• The BMC provides a simple,
In a single page view, the BMC provides an
intuitive and flexible tool that can overview of the organization:
be developed rapidly and applied
• it’s Offering
ongoing to iterate and refresh the
• Infrastructure
organization strategy.
• Market, and
• Finances
Business Model Canvas 1. Customer Segments
9 Building Blocks
Copyright © 2019 by E.M. Erasmus. Erasmus Consulting & Training. All rights reserved.
The different groups of people or organizations
you aim to reach and serve.
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1. Customer Segments 2. Value Proposition

• For whom are we creating value?
– Key characteristics, demographics, needs, etc.
• Who are our most important customers?
The goods and services that create value for

specific customer segments.
2. Value Proposition 3. Channels

• What value do we deliver to the customer?
• Which one of our customer’s problems are we helping to
solve?
• What bundles of products and services are we offering to
each Customer Segment?
• Which customer needs are we satisfying?
How you communicate with and reach your

customers segments to deliver a value proposition.
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3. Channels 4. Customer Relationships

Channel phases:
1. Awareness: How do we raise awareness about our company’s
products and services?
2. Evaluation: How do we help customers evaluate our
organization’s Value Proposition?
3. Purchase: How do we allow customers to purchase specific
products and services?
4. Delivery: How do we deliver a Value Proposition to customers?
5. After sales: How do we provide post-purchase customer support? The type of relationships you establish with
specific customer segments.
4. Customer Relationships 5. Revenue Streams

• What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Relationship: one-off, recurrent, face-to-face, online?
• How are they integrated with the rest of our business model?
• How costly are they?
The cash you generate from each customers segment

(subtracting costs from revenues to create earnings).
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5. Revenue Streams 6. Key Resources

• What key activities are funders willing to subsidize/sponsor?
• For what value are our customers really willing to pay?
• For what do they currently pay?
• How are they currently paying?
• How would they prefer to pay?
The most important assets and resources (physical,

intellectual, human, financial) required to make your
enterprise work.
6. Key Resources 7. Key Activities

• What Key Resources do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?
The most important things that needs to be done

to make the enterprise work.
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7. Key Activities 8. Key Partners

• What Key Activities do our Value Propositions require?
• Our Distribution Channels?
• Customer Relationships?
• Revenue streams?
The network of suppliers and partners that make

the enterprise work.
8. Key Partners 9. Cost Structure

• Who are our key Partners?
• Who are our key Suppliers?
All the costs you will incur to operate the enterprise.

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9. Cost Structure
• What are the most important costs inherent in our business
model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
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Sustainable Business Model Canvas
92 + Building Blocks
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Advantages in use of BMC Word of caution in use of BMC

• Simple • Simple….
• User-friendly (no rocket science) • Not a business plan
• Promotes collaboration • Just the starting point to develop a complete business
• Fosters coherence and clarification • Feasibility (doable), acceptability (ROI) and
• Used to comprehensively develop a (business) idea vulnerabilities (risks) are not addressed
Linking BMC to the Business Plan Getting started…some tips…

• Use a large sheet of paper or a whiteboard
• Customer Segments I. General Company Description
• Value Proposition
• Draw the lines to create the 11 building blocks
II. Products and Services
• Channels
III. Market Analysis
• Construct the BMC using post-it notes
• Customer Relationships
IV. Marketing Plan
• Key Activities
• Key Resources V. Operational Plan • Free online tool: www.canvanizer.com
• Key Partners VI. Management and Organization (sustainable components not included)
• Revenue Streams VII. Startup Capital and Expenses
• Cost Structure VIII.Financial Plan
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Tips, Tricks and Tools… Tips, Tricks and Tools…

https://canvanizer.com/new/business-model-canvas
Choose your business concept!
09-Feb-20xx
The business model Canvas XYZ Company Iteration #1
Key Partners Key Activities Value Proposition Customer Relationship Customer Segments
Your Body text Your Body text Your Body text Your Body text Your Body text
Key Resources Channels

Your Body text Your Body text
Cost Structure
Your Body text
Revenue Streams
Your Body text
Key Takeaways
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10/01/2019
Business Model Canvas

• BMC describes how value is created, for whom,
through which activities, channels and by the help of
which partners
• BMC: a single page view
• Can be quickly developed
• NOT a business/strategic plan
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10/01/2019

INTRODUCTION E.M. ERASMUS, MA

Full-time executive at Free Zone Aruba:

Part-time entrepreneur: consultant / trainer

E.M. ERASMUS, MA Outline

This session is useful if your organization

All successful organizations are built

Mission-driven, “helping” oriented

What is a business model? Value

Few companies understand their existing

• A business model isn’t just about how an organization

Risky… Non-Profit Organizations (NPOs)

From inputs to impacts… Business Model Canvas

The medium-term results for specific

The final products (goods and services) What we produce

The processes or actions that use a

The resources that What we use to

Business Model Canvas Business Model Canvas

Business Model Canvas 1. Customer Segments

1. Customer Segments 2. Value Proposition

The goods and services that create value for

2. Value Proposition 3. Channels

How you communicate with and reach your

3. Channels 4. Customer Relationships

4. Customer Relationships 5. Revenue Streams

The cash you generate from each customers segment

5. Revenue Streams 6. Key Resources

The most important assets and resources (physical,

6. Key Resources 7. Key Activities

The most important things that needs to be done

7. Key Activities 8. Key Partners

The network of suppliers and partners that make

8. Key Partners 9. Cost Structure

All the costs you will incur to operate the enterprise.

Sustainable Business Model Canvas

Advantages in use of BMC Word of caution in use of BMC

Linking BMC to the Business Plan Getting started…some tips…

Tips, Tricks and Tools… Tips, Tricks and Tools…

Choose your business concept!

Key Resources Channels

Business Model Canvas

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