Business Modelling Canvas
What is Business Model Canvas
Key Business Drivers
Strategies for business units
startups and corporates
The Business Model Canvas or BMC is a Strategic illustration of the key variants that describe the participating factors in a business model. The business model canvas is the first strategic step towards starting a business as It integrates the key participating and evaluating factors of the business on a single page. We at Techpind help clients to put across the key elements of the business model canvas for their entire journey. The KEY categories for the Business Model Canvas which one can refer to as building blocks of an organization are:
1. Key partners
2. Key activities
3. Key resources
4. Value propositions
5. Customer relationships
7. Customer segments
8. Cost structure
9. Revenue streams
The business model canvas applies to both startups and conglomerates in a very practical manner where businesses aim to aligned the various driving and restraining factors for their business and strategically implement their go to market or growth plans. As it brings down all the participating factors visually on a piece of paper it makes All company aspects clear at a glance by looking at the growth and Restraints in each factor, an organization can fine-tune its go to market, value propositions and structurally improve its cognitive strategy. When setting up a new business clear mapping can be emanated in advance by deep brainstorming within the strategy makers and later referring to the Business Model Canvas for the roadmap modifications.
One of the key factors in any business is to understand the role of partners and to define their engagement at various touch points for achieving business Goals. In light of the recent scenario both start-up’s and existing organizations, it may be critical to create and define their strategic alliances Key factor to consider would be what value will a partner add to the current scenario, for instance will the alliance help us in scaling up, Combating competition, Charter unexplored territories, Knowledgebase or any key specialization or offering that strengthens your product offering.
Key insights and business acumen will be acquired by knowing well in advance which partners may constitute and strengthen your footprint creating a valuable relationship and sustainable growth.
Key activities are basically the transaction model or the profit center activity of any organization. When it comes to jotting down key activities pertaining to the business model canvas one should have a clear understanding of the problem statement one is trying to solve, Value proposition of the solutions offered or the kind of relationship or interface the company will have while dealing with customers. By having a key acumen of the core activities of a company, the value proposition of the organization will be determined. It is not just about offerings or production, but about a problem-solving interface, establishing networking opportunities with the quality of the product or services offered. When the organization understands what is the added advantage or value to the customer in their offering, a long-lasting relationship can reckon with existing customers and convert new customers keeping competition at bay.
Key Resources are the main differentiators that unify a company’s zeal to perform, Integration of the resources drives a company. They can be mainly categorized into a human, intellectual, financial or physical resources. Physical resources are assets such as equipment and machinery. Intellectual resources reflect things like Business Acumen, knowledge base, research data, Brands, trademarks, IP rights and patents. The financial resources are related to funds, Cash flow and sources of income whereas human resources reflect the core workforce of the company and their expertise.
Value Proposition is the first question a business entails on while embarking on a journey, what is the key USP of our Offering or service that differentiates us with the current existing companies in the demography. It can be a Product, Solution, Technological disruption or integration of solutions. The Value proposition is all about the core of an organization’s right to exist, it has to always be gauged with whether meeting with the customer’s need or Demand in the current Environment.
How does an organization differentiate itself from the competition? This distinction focuses on quantity and quantitative factors such as price, service, speed and delivery scenario on the one hand, and on the other hand, it focuses on qualitative factors like design, status quo, brands, and CX.
It is always being important to engage with customers. The wider the customer base the more important it is to divide your customers into different target groups. Each customer group has different specific needs. By segmenting the customer needs, the company invests in different customers. A good service tends to increase good and stable customer relationships that will be ensured in the future.
Channels are the way a business communicates or interacts with its stakeholders, Customers or Partners mainly bifurcating it into an Online or Offline mode. Any company has business communications model, distribution and sales channels which are needed to be defined in the BMC for strategizing and Understanding the strengths and weaknesses of the channel used and help in envisaging the need for any other alternatives for sustainability or growth. It is not just about the customer touch point or the way in which an organization communicates with its customers. The purchase locations, the delivery of the product or services provided are also decisive strategic elements in BMC. Channels to customers have five different stages:
- After sales or satisfaction mapping
In order to make the best use of the available channels and to have maximum reach, it is advisable to integrate offline and online channels.
Many companies provide services to more than one targeted customer groups, it is necessary to modularize into customer segments. By identifying the specific needs and requirements of each group and which value they attach to this, products and services can be better geared towards these needs and requirements. This, in turn, leads to greater customer satisfaction, which contributes to a good value proposition.
Cost structure keeps the business plan in check and dictates necessary course correction methods to sustain the current goals. By deep diving into insights on cost structure, a company can churn out the necessary traction it needs to reach break even or before thinking of bilateral diversification. The cost structure takes into point factors like economies of scale, fixed and variable costs in the BMC. It has a very serious cause an effect in the business strategy leading to adjusting the key resources and channels if the investments to be made are more than the organizational revenue.
For any business it’s all about how will they make money to sustain and to grow as planned. This aspect of BMC integrates all the key Strategic factors delivering key insights into the revenue streams of the company. From break even to Scaling up is driven by revenue streams’ revenue streams not only looks at the core models but also monetizing digital footprints, surrogate promotion if any, Subscription models or loyalty monetization into consideration and the strategic factors towards its establishment under one roof. Revenue streams are drivers of cost structures.