Talking Business Modal Canvas

Hello everyone, I am a student from Binar Academy studying Product Management, I will share about the Business Modal Canvas that I have learned

The business model canvas is a great tool to help you understand a business model in a straightforward, structured way. Using this canvas will lead to insights about the customers you serve, what value propositions are offered through what channels, and how your company makes money. You can also use the business model canvas to understand your own business model or that of a competitor.

The Business Model Canvas was first developed by Alexander Osterwalder. Alexander also wrote a book about Business Model Canvas, you know! His book is titled Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (2010).

As we know, this business model canvas has 9 components, such as:

1. Customer Segment
2. Customer Relationship
3. Channels
4. Value Proposition
5. Key Activities
6. Key Resources
7. Key Partner
8. Revenue Streams
9. Cost Structure

Let’s discuss !

1. Customer Segment. is the target that we will or are aiming for become our customer who will bring big revenue for us. In the customer segment column, we must clearly define the characteristics of the target target market. The categories of customer segments are:

• Mass Market. Broad market segments with the same types of needs and problems
• Niche Market. Specific market segments
• Segmented. Market segments that have different needs but are in the same category
• Diversified. Market segments that have different needs or problems Multi-sided Platform Serving more than two interdependent market segments

2. Customer Relationship

Customer relationship is a way that we can use to communicate with customer segments. Usually, many people confuse the difference between customer relationship with channels. The keyword is relationships. Customer relationship deals with relationships, while channels are related to how to reach customers.

3. Channels

Channels are our way of reaching customers. Channel elements include distribution channels up to products/features can reach the customer. We can see an example of the application of this channel at Gojek. The channel they use is a mobile-app available on iOS, Android.

4. Value Proposition

Value proposition is the value or value that we offer to customers. The advantages of our product compared to competitors is something that must be written in the value proposition. The value proposition in the business model must be able to answer:

• Newness. Undiscovered products/services
• Performance. Products/services offered improve customer performance to be more efficient or effective
• Customization. The products/services offered are different or there are options for each segment
• Getting the job done. Help to get things done
• Design. Offers artistic value more than functional
• Brand. High class brand gives status to the buyer
• Price. Offers a competitive price or in accordance with market segment characteristics
• Cost reduction Helping customers streamline usage costs
• Risk reduction Offer products/services that minimize risk borne by the customer as a guarantee.
• Accessibility. Facilitate customer access to products/services offered.
• Convenience. Offering products/services that make it easy for customers

5. Key Activities.

The key activities column must be filled with mandatory activities that done by the company to generate value propositions offered. Some guide questions you need to answer:

• What kind of business activities can be implemented within the company to help you keep your customers satisfied?
• How about the distribution of your product/service?
• Do you have experts to carry out day-to-day company activities?

6. Key Resources.

Key resources are important things that we must have so that key activities can be carried out and the value proposition can be given to the customer. You need the right resources because these are assets you have to support company activities. Some simple examples of key resources are computers, workspaces, employees, vehicles, electricity, and so on.

7. Key Partners.

Key partners are parties we can invite cooperation. In a business, you need a partner who supports your company. If until now you have not found the uniqueness of your product/service due to lack of networking, you need a work partner who can help you achieve the value proposition. Example: You run a social media management agency, maybe your key partner is a graphic design service agency to ensure good quality social media feed designs to provide to clients.

8. Revenue Stream.

Every company needs a stream of income to keep it running its daily activities. Revenue stream is a source of company income from various sources, such as sales proceeds, dividends and so on. Revenue streams in BMC are various ways to generate profits from the value proposition. Language its simple: how do we get money

9. Cost Structure.

A cost structure is a financial scheme that finances your company’s operations. How much money should be spent to carry out the company’s activities per day? How much does it cost for the resources used? What is the marketing price of the product?. The cost structure is the biggest cost breakdown that we have to issue it to perform key activities and generate value proposition.

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