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Eng. Mohamed Ameen Marketing Consultant Copyrights © Mohamed Ameen 2014

Business Model Canvas - BMC

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This presentation describes how to create a valid BMC for your idea.

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Page 1: Business Model Canvas - BMC

Eng. Mohamed AmeenMarketing Consultant

Copyrights © Mohamed Ameen 2014

Page 2: Business Model Canvas - BMC

Session Agenda:

Copyrights © Mohamed Ameen 2014

2. What is the Business Model Canvas - BMC?

3. Why shall we use BMC?

4. How to create BMC for my business?

5. Practical workshop.

1. Why do we need planning?

Page 3: Business Model Canvas - BMC

Why do we need

Planning?

Copyrights © Mohamed Ameen 2014

Page 4: Business Model Canvas - BMC

Copyrights © Mohamed Ameen 2014

• A plan will help you determine whether

your business idea is feasible.

• It will help you convince investors your

business is a reliable proposition.

• A plan is like a map. When following a plan, you can always see how much you have progressed towards your goal.

• It will allow you to come up with a

comprehensive strategy on how you will

deal with various scenarios.

Page 5: Business Model Canvas - BMC

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30% of entrepreneurs

fail in their startups

due to

lack of planning

Page 6: Business Model Canvas - BMC

What is BMC?

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Page 7: Business Model Canvas - BMC

• The Business Model describes the rationale of how a business creates, delivers, and captures value.

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• It covers the four main areas of a business: customers, offer, infrastructure, and financial viability.

Page 8: Business Model Canvas - BMC

Why shall we use

BMC?

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Page 9: Business Model Canvas - BMC

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• BMC forms a solid base for the Business Plan.

• BMC filters our ideas before planning.

• BMC provides a good overview about our idea.

Page 10: Business Model Canvas - BMC

How to create BMCfor my business?

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Page 11: Business Model Canvas - BMC

BMC is structured around 9 building blocks:

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1. Customer Segments.

2. Value Proposition.

3. Channels.

4. Customer Relationship.

5. Revenue Streams.

6. Key Resources.

7. Key activities.

8. Key Partnerships.

9. Cost Structure.

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Page 13: Business Model Canvas - BMC

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BMC’s 9 building blocks

Who do we target?- Mass markets.- Niche markets.- Diversified markets.- Multi-sided markets.

The Customer Segments Building Block definesthe different groups of people or organizations we aim to reach and serve.

Page 14: Business Model Canvas - BMC

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BMC’s 9 building blocks

What do we offer?- Operational Excellence

- Performance Superiority.- Customer Intimacy.

The Value Propositions Building Block describesthe bundle of products and services that createvalue for a specific Customer Segment.

Page 15: Business Model Canvas - BMC

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BMC’s 9 building blocks

Channel Phases:- Marketing.

- Purchase.- Delivery.- After sales.

The Channels Building Block describes how acompany communicates with and reaches itsCustomer Segments to deliver the Value Proposition.

Page 16: Business Model Canvas - BMC

Copyrights © Mohamed Ameen 2014

BMC’s 9 building blocks

Customer Relationship Phases:- Customer acquisition.

- Customer retention.

- Boosting sales.

The Customer Relationships Building Blockdescribes the types of relationships a companyestablishes with specific Customer Segments.

Page 17: Business Model Canvas - BMC

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BMC’s 9 building blocks

Revenue streams:- Asset sale.- Usage.- Subscription.- Renting.- Licensing.- Brokerage.- Advertising.

The Revenue Streams Building Block representsthe cash a company generates from each CustomerSegment.

Page 18: Business Model Canvas - BMC

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BMC’s 9 building blocks

Key Resources categories:- Physical.- Intellectual.- Human.- Financial.

The Key Resources Building Block describesthe most important assets required to make abusiness model work.

Page 19: Business Model Canvas - BMC

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BMC’s 9 building blocks

Key Activities categories:- Production process.- Problem solving.- System development.

The Key Activities Building Block describesthe most important things a company must doto make its business model work.

Page 20: Business Model Canvas - BMC

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BMC’s 9 building blocks

Types of Key Partnerships:- Joint Venture.- Strategic alliance.- Strategic partnership.- Buyer-Supplier relationship.

The Key Partnerships Building Block describesthe network of suppliers and partners that makethe business model work.

Page 21: Business Model Canvas - BMC

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BMC’s 9 building blocks

Elements of Cost Structure:- Fixed cost.- Variable cost.- Economies of scale.- Economies of scope.

The Cost Structure describes all costs incurred tooperate a business model.

Page 22: Business Model Canvas - BMC

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BMC’s 9 building blocks

CustomerSegments:

whom are weCreatingValue for?And who areour mostImportantcustomers?

CustomerRelationships:How could wemake ourCustomersloyal to us??

Channels:

How will wereach ourcustomers?

Value Proposition:What value do we deliver to the customer?Which one of our customer’s problems do we solve?What bundles of products and services are we offering?

Key activities:What KeyActivities doour ValuePropositionsrequire?

KeyResources:What KeyResources dowe need?

Key Partners:Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

Revenue Streams:How much doeseach Revenue Stream contribute to overall revenues?

Cost Structure:What are the most important costs inherent in our businessmodel? Which Key Resources are most expensive? WhichKey Activities are most expensive?

Page 23: Business Model Canvas - BMC

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Workshop time!

Page 24: Business Model Canvas - BMC

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We are done!

Thanks

Eng. Mohamed Ameen

• E-mail:

[email protected]