Business Model Canvas

Business Model Canvas
Muhammad Iskandar Hamzah, PhD

MODUL : KANVAS MODEL PERNIAGAAN & RANCANGAN PERNIAGAAN
28 DISEMBER 2018
UNIVERSITI TEKNOLOGI MARA, RAUB
PENCERAMAH:
DR. EHSAN FANSUREE MOHD. SURIN &
DR. MUHAMMAD ISKANDAR HAMZAH
MODULE OBJECTIVES
 Students have a clear understanding of Business

Model Canvas implementation in business.
 Students determine the type of products to sell online.
 Students establish the product’s USP.
 Students identify the resources, partners, channels
and cost structure needed to run the online business.
MODULE CONTENTS
 Introduction to Digital Entrepreneurship

 Establishing Product and Brand Name
 Business Model Canvas
 Customer Empathy
 Customer Avatar
Business
Model
Canvas
BUSINESS MODEL CANVAS
• Plan to create and analyse business models.

• Created by Alexander Osterwalder in his book
entitled Business Model Generation.
• A one-page overview and visualization of building
blocks of starting a business.
• Menciptakan sebuah kerangka yang sederhana
dan mudah difahami untuk menggambarkan
perniagaan aitu Kanvas Model Perniagaan atau
Business Model Canvas.
BUSINESS MODEL CANVAS
1. Value proposition
2. Customer Segments
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Activities
7. Key Resources
8. Key Partners
9. Cost Structure
• Customer Segments: Who are the customers? What do they think? See?
Feel? Do?
• Value Propositions: What’s compelling about the proposition? Why do
customers buy, use?
• Channels: How are these propositions promoted, sold and delivered? Why?
Is it working?
• Customer Relationships: How do you interact with the customer through
their ‘journey’?
• Revenue Streams: How does the business earn revenue from the value
propositions?
• Key Activities: What uniquely strategic things does the business do to
deliver its proposition?
• Key Resources: What unique strategic assets must the business have to
compete?
• Key Partnerships: What can the company not do so it can focus on its Key
Activities?
• Cost Structure: What are the business’ major cost drivers? How are they
linked to revenue?
BMC
Building
Blocks
VALUE PROPOSITION
Costs vs • Benefit > Costs
Benefits • Value: Is it ‘worth’?
• Unique selling proposition

U.S.P • Niche; differentiate value offerings from
competitors
What’s compelling about the proposition?

Why do customers buy, use?
CUSTOMER SEGMENT
• Who are the customers?
• What do they think? See? Feel? Do? (Customer
Empathy Map)
• Geography, income, age, gender

Demographic • e.g. B40, M40, T20
• Beliefs, Idol, Hobby, Values, Personality

Psychografic • Some could be observed while some could not
Purchase • Behavior, Attitude

Behaviour • Loyalty, Frequency, Sensitivity to price, Kesetiaan
CHANNELS
• How does each customer segment
want to be reached?
• Through which interaction points?
• Direct – self, staff, branches Agent /
Dropship
• Indirect – agent, dropship, E-

Social Media
distributor, franchjse Commerce
• One way atau Two way? Channels Channels

for customers’ complaints &
feedbacks, promotion etc Online /
Offline
Accessibility
• Increase reach and reducing costs.

Parcel
• Self-service, Automation Delivery
• But does less personalized service

will affect service experience (e.g.
AirAsia)?
CUSTOMER RELATIONSHIPS
• What relationships are you
establishing with each segment?
• personal? automated? acquisitive?
retentive? Get • Acquire customers
• Transactional vs Relational?
• Retaining
• 1-to-1 Marketing or Mass
Marketing?
Keep customers
• Customized or standard solutions
for all? Grow • Expand the market
• CRM has to be Win-Win: produce
financial returns and customer
satisfaction.
REVENUE STREAMS
• What are customers really willing
to pay for? how?
• Are you generating transactional
or recurring revenues?
• Mode of payments?
• One-off, or recurring
(subscriptions)?
• Contracts, Subscription fees,
Licensing, Usage fee, Comissions?
• Pricing mechanisms:
• Fixed (sticker price, level
equipment/features, quantity based)
• Dinamic (negotiation, yield mgmt,
supply-demand)
KEY ACTIVITIES
• Which activities do you need to
perform well in your business model?
What is crucial?
• Product development, R&D
• What are the activities needed to give Manufacturing
• Upstream, ↑ value-added
impact to Value Proposition, Channels,
Customer Relationships & Revenue
Streams?
• Consultation, Problem solving
• Skills and competencies – learn from Services • Effort: Mental rather than
experts & learn from mistakes. physical
• Operations management – how to
manage activities (SoPs, quality
system and risk mitigation).
• Buy & sell
Trading • ↓ value-added
KEY RESOURCES
• Which resources underpin your Financial

business model? • Capital, cashflow,
• Which assets are essential to igive
impact to Value Proposition, Channels,
Customer Relationships & Revenue Physical
Streams? • Asset: Buildings, vehicles, IT
• Restaurant – ingredients, chef &
working capital.
• Frozen food manufacturing – cooking Intellectual
upholsteries, freezers. • Paten, copyright, branding.
• Coaching – skilled instructor,
copyrighted technique, professional
certification. Human
• Skilled workers
KEY PARTNERS
• Which partners and suppliers leverage
your model? Who do you need to rely on? • Optimizes resources and
Economies activities
• What are their main activities? of Scale
• Sokongan & perkongsian
• Identify Chamber of Commerce/Trade
Associations
• Build a solid supply-chain network Risk • Strategic JVs
• Not depending on a single source Managemen
• Uncertainty situations
Supplier t
• e.g. Most Malaysian cosmetic brand
owners outsource to manufacturing • Activity & resources
packaging firms.
Outsource • Lack of capacity to do
• e.g Property agents require to network from A to Z
with banks, valuers, developers, lawyers,
media, etc.
COST STRUCTURE
• What is the resulting cost
structure?
• Which key elements drive your
costs? Cost Value
• Cost-driven atau Value-driven?
• Cost-driven → minimal costs:
maximize automation & ‘self-
service’
• Value-driven → premium quality,
personalized service,
customizable offerings.
• Cost Structures:
• Fixed
• Variable
• Break-even/Economies of scale
CONTOH BUSINESS MODEL CANVAS
THANK YOU!


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Business Model Canvas

Muhammad Iskandar Hamzah, PhD

 Students have a clear understanding of Business

 Introduction to Digital Entrepreneurship

• Plan to create and analyse business models.

• Unique selling proposition

What’s compelling about the proposition?

• Geography, income, age, gender

• Beliefs, Idol, Hobby, Values, Personality

Purchase • Behavior, Attitude

• Indirect – agent, dropship, E-

• One way atau Two way? Channels Channels

• Increase reach and reducing costs.

• But does less personalized service

• Which resources underpin your Financial

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