UNDERSTANDINGBusiness Model Canvas

Galih H. Baskoro

Maturity is not when we start speaking big

things. Its when we start understanding

small things.Anonymous

About Speaker

id.linkedin.com/in/galihbaskoro

West Java Province, IndonesiaAfter graduated from Diponegoro University in 2008, galihbaskoro joined PT PLN (Persero) and worked for Adipala CFSPP Project as a Project Management Group Staff. Currently, he works as an Assistant Engineer of Procurement Control, and a Gajah Mada University Postgraduate student.Have interest in Strategic Planning, Risk Mgt., Energy Technology, Procurement, and Asset Mgt.

The Sources1

2

Business Model Generation, Alexander Osterwalder & Yves Pigneur, 2010.

Business Model Canvas – Penerapan di Indonesia, Tim PPM Manajemen, 2012.

Fun Fact!32.000 copiesof the book were sold in the first year.

Now,more than

500.000 copiesin 66 countries and 26 different languages have been sold.

WHAT IS ?

A business model describes the rationale of how an organization creates, delivers, and capture value.

@AlexOsterwalder

BM Components:

Who it serves,1

Who it provides,2

How it provides its product,3

How it creates money/ profit,4

How it differentiates itself from its competitors,5

Business Model

≠Business Strategy

ExplanationA Business Model

describes how a business expects to generate revenue and profits.

Your Business Model details your long-term strategy and day-to-day operations.

A Good Understanding of BM can help Managers to:

1 Quickly gain the big picture of the business.

2 Develop the business models vocabulary.

3 Develop a shared understanding.

4 Think beyond product/ service innovation.

5 Bring structure to the innovation thought process.

Now lets discuss about

Business Model CanvasConcept

What if you have

an ....................

of your business?

idea

What if you have

an ....................

of your business?

plan

The Combination

of both will

creates.....

so the formulation is....

hence the BMC...

9blocks Business

ModelCanvas

1CUSTOMER SEGMENTS

Group of People, a company targets and chooses to serve.

Distinctly segmented based on common needs/ attributes.

For whom are we creating value?

2VALUE PROPOSITION

Products or services that create value for the specified Customer Segment.

Either solve a customer problem or satisfy a customer need.

What value do we deliver to the customer?

3CHANNELS

Customer touch points utilized to deliver a Value Proposition.

Finding the right mix/ match betweenChannel Types and Phases is crucial.

Through which channels do our Customer Segments want to be reached?

4CUSTOMER RELATIONSHIP

Types of relationships established with a specific Customer Segment.

Motivated by Customer Acquisition/ Customer Retention/ Boosting Sales.

Through which channels do our Customer Segments want to be reached?

5REVENUE STREAMS

Cash Earnings generated from each Customer Segment.

Transaction vs. Recurring Revenues, Fixed vs. Dynamic Pricing

How much does each Revenue Stream contribute to overall revenues?

6KEY RESOURCES

Most important assets required to make the business model work.

Allow the company to create and offer a Value Proposition, reach markets, maintain Customer relationships, and earn revenues

What key Resources do our Value Propositions require?

7KEY ACTIVITIES

Most important activities required to make the business model work.

Routine/ critical tasks that engage customers and turn profit.

What Key Activities do our Value Proposition require?

8KEY PARTNERSHIP

Most important network of suppliers/ partners required to make th business model work.

Motivated by optimization and economy of scale/ Reduction Risk/ Acquisition of particular resources.Who are our Key Partners? Who are our Key Suppliers

9COST STRUCTURE

All/ Most important costs incurred to operate a business model.

Cost-driven vs. Value-driven Cost Structure.

What are the most important costs inherent in our business model?

How do you determine the right business model?

3 objectives in mind

Value for Customers

Value for Business

Value for People & Planet

Now lets see

The ex

ample

of BMC in

busin

ess

KASKUS : Kasak Kusuk Didirikan di Seattle oleh:

@adarwis @silly_bonehead Budi Dharmawan

Pada awalnya bertujuan sebagai forum komunikasi mahasiswa Indonesia di luar negeri.

Kaskus memberikan nilai kepada konsumen dalam bentuk tempat sosialisasi (nongkrong)

More Facts about KasKus! Tulisan dan forum diskusi dibuat oleh Kaskusers sendiri.

Kaskuser yang memberikan informasi mendapat reputasi: cendol yang memberikan informasi dgn baik & bata yang selalu membuat gaduh.

Kaskus tidak menarik pembayaran dari konsumen langsung. Kaskus memiliki beberapa opsi pendapatan:

o Kaspayo Kaskus Adso Kaskus Donaturo E-Pulsa

Biaya IT Biaya SDM

Pengguna internet

scr umum

Agan (wati)Yg butuh informasi

Agan (wati)Yg ingin jual-beli

Perusahaan yg ingin promosi

Komunitas Regional & Thread

WORD of MOUTH

Situs Internet

Mobile Internet

Tempat Nongkrong berbagi informasi

scr gratis

Tempat Promosi Produk dgn murah

Tempat Jual Beli

Barang

(umum/unik)

IT

Marketing

Ongoing Process

Programmer

Moderator umum

Infrastruktur IT

Agan (wati)Yg ingin

memberikan informasi

Supplier infrastructure IT

Free Access!! Kaspay

Kasdonat

Kas-AdsInvestor

E-Pulsa

Bayar u/ lebih!!

Another example

How about UPJB ....?