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Materi BMC CommTECH.pptx
- 1. Business Model Canvas CommTech Insight 2020: Socialpreneurship in Action Dr. Ir. Janti Gunawan M.Eng.Sc., M.Com.IB
- 2. so what is a business model?
- 3. Business model definitions (selected) Stories that explain how enterprises work in addressing who the customers are and what they value (Magretta, 2002) A framework or recipe for making money by creating and capturing values (Afuah, 2014) The rationale how an organisation creates, delivers, and capture values (Osterwalder & Pigneur, 2013) An abstraction of strategy of how a firm does business and in particular how a firm creates, delivers and captures values through its activity and transactional systems
- 5. Business Model Canvas: The Building Blocks
- 6. Which customers do we serve? What are the jobs they need to get done?
- 7. 1. CUSTOMER SEGMENTS Definition of the different groups or organizations a company/enterprise aims to reach and serve Questions to ask: 皰 For whom are we creating value? 皰 Who are our most important customers? B2B vs B2C 皰 Where do they live? 皰 How old are they? 皰 How much do they earn? 皰 Where do they hang out? 皰 How will they interact with the products? Types of CUST. SEGMENTS: Mass market (e.g. Consumer products) Niche market (e.g. Luxury items) Diversified market (e.g. Amazon) Multi-sided markets (e.g. Credit cards)
- 8. What do we offer them? Which 損problem束 do we really solve? What value do we really provide? A collection of products/services that create VALUE to a particular segment of customers
- 9. 2. VALUE PROPOSITIONS Describing the bundle of products/services that create value for a specific customer segment Questions to ask: 皰 What value do we deliver to customers? 皰 Which one of our customers problems are we solving? 皰 What is your companys competitive advantage? 皰 Which customer needs are we satisfying? 皰 What bundles of products and services are we offering to each customer segment? Types of VALUE PROPOSITIONS: Newness Performance Customization Getting the job done Price Risk/cost reduction Design Convenience/usability Accessibility
- 10. How can we best reach/serve each customer segment? What are the best interaction/touch points?
- 11. 3. CHANNELS Describing how a company communicates with and reaches its customer segments to deliver its value propositions Questions to ask: 皰 Through which channels do our customers want to be reached? 皰 How are we reaching them now? 皰 How are these channels integrated? 皰 Which channels works best? 皰 Which ones are the most cost- efficient? 皰 How are we integrating them with customer routines Types of CHANNELS: Sales force Web sales Own stores Partner stores Wholesaler
- 12. Offering Customer Interface What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?
- 13. 4. CUSTOMER RELATIONSHIPS Describing the types of relationships a company establishes with specific customers Questions to ask: 皰 What type of relationship does each of our customer expect us to establish and maintain with them? 皰 Which ones have we established? 皰 How costly are they? 皰 How are they integrated with the rest of our business model? Types of CUST. RELATIONSHIPS: Personal assistance Dedicated personal assistance Self-service Automated service Customer communities Co-Creation
- 14. What are our customers really willing to pay for? How? Transactional or recurring revenues?
- 15. 5. REVENUE STREAMS Describing the cash a company generates from each customer segment. (Revenue costs = earnings/profits) Questions to ask: 皰 For what value are our customers really willing to pay? 皰 For what do they currently pay? 皰 How are they currently paying? 皰 How would they prefer to pay? 皰 How much does each revenue stream contribute to overall revenues? Types of REVENUE STREAMS: Asset sale Usage fee Subscription fees Lending/renting/leasing Licensing Brokerage fees Advertising
- 16. Which resources and assets are critical to successfully run our business?
- 17. 6. KEY RESOURCES Describing the most important assets required to make a business model work Questions to ask: 皰 What key resources do our value propositions require? 皰 What resources do our distribution channels require? 皰 What resources do our customer relationships require? 皰 What resources do our revenue streams require? Types of KEY RESOURCES: Physical assets (e.g. facilities, machines, etc.) Intellectual resources (e.g. brands, copyrights, patents, etc.) Human resources Financial resources and/or guarantees
- 18. 6. KEY RESOURCES Describing the most important assets required to make a business model work Questions to ask: 皰 What key resources do our value propositions require? 皰 What resources do our distribution channels require? 皰 What resources do our customer relationships require? 皰 What resources do our revenue streams require? Types of KEY RESOURCES: Physical assets (e.g. facilities, machines, etc.) Intellectual resources (e.g. brands, copyrights, patents, etc.) Human resources Financial resources and/or guarantees
- 19. What essential key activities do we have to perform to deliver our value proposition?
- 20. 7. KEY ACTIVITIES Describing the most important things a company must do to make its business model work Questions to ask: 皰 What key activities do our value propositions require? 皰 What key activities do our distribution channels require? 皰 What key activities do our customer relationships require? 皰 What key activities do our revenue streams require? Types of KEY ACTIVITIES: Production (e.g. Designing, making and delivering a product) Problem solving (e.g. Coming up with new solutions) Platform/Network (e.g. Service provision, interface management, platform promotion)
- 21. Who are critical partners and suppliers leveraging our business model? With whom do we co-create value? Infrastructure
- 22. 8. KEY PARTNERSHIPS Describing the network of suppliers and partners that make a business model work Questions to ask: 皰 Who are our key partners? 皰 Who are our key suppliers? 皰 Which key resources are we acquiring from partners? 皰 Which key activities do partners perform? Types of KEY PARTNERSHIPS: Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources and activities
- 23. What is our resulting cost structure? Which key elements drive costs? Finance
- 24. 9. COST STRUCTURE Describing all the costs incurred to operate a business model Questions to ask: 皰 What are the most important costs inherent in our business model? 皰 Which key resources are the most expensive? 皰 Which key activities are the most expensive? Types of COST STRUCTURE: Cost-driven (= minimizing costs) Value-driven (= focus on value creation) Characteristics: Fixed costs Variable costs Economies of scale Economies of scope
- 26. Incorporating Social Impacts into Business Model Design BMC for Social Enterprises
- 27. Profit Purpose Moving beyond just Profit Purpose Financial Bottom-line
- 28. Social Purpose Social Cost Social Benefits to incorporate Social Purpose Social Bottom-line
- 29. + - Social Purpose but this often leads to Trade-Off Financing Gap (-) Social Impact (+)
- 30. Self-Reflection Questions What is your purpose? How can it be measured? How do you measure if you have achieved your purpose?
- 31. Social Impacts Conventional profit-driven businesses are measured by the financial bottom-line financial returns to shareholders A purpose-driven business is seeking to make certain desired social impacts as its primary goal a social bottom-line or social returns to stakeholders The key to achieving those desired impacts is to have clear metrics to measure the social outcome generated
- 32. What is a Social Enterprise? Social Purpose-Driven vs. Profit-Driven Delivering Social Impacts on an on-going, sustainable, and scalable basis
- 33. 1. Serving the Needs of the Underserved Those who cannot afford what the market currently provides Those whose needs are ignored 1. Empowering the Disadvantaged with the means to help themselves Creating opportunities for the productive use of their existing capability Developing their Capability 2. Reducing a Social Bad Prevention, Treatment and Circular Economy (Re-use, Up-cycle) 3. Engaging the participation and cooperation of a Community of actors in a Social Ecosystem 4 Generic Purposes of Social Enterprise
- 34. Social Cost Social Benefits Incorporating Social Purposes into Business Model Community Engagement Capability Use & Development Target beneficiaries as customers Social Purpose Social Bottom-line Prevention , Treatment, Re-use
- 35. Social Cost Social Benefits Social Purpose Community Engagement Capability Development Target beneficiaries Social Purpose Social Bottom-line and Metrics to Measure Social Bottom-line Prevention , Treatment, Re-use + + + -
- 36. Target Beneficiary as Customers The Target Beneficiary is the Paying Customer that provides revenue sufficient to cover at least the cost Key Challenge is to Reduce Cost to make the product/service affordable to the underserved group Cross-Subsidy Models The Target Beneficiary could not pay, or pay enough to cover cost, hence need to create value for another customer to generate the income to cover the deficit, or find financing models that meet the financial gap (cont) Generic Social Impact Models
- 37. The Target Beneficiary as Producers The Target Community as Partners, Producers and Consumers Hybrid Models Combining more than one generic way to make impacts Generic Social Impact Models (cont.)
- 38. Photos: Grameen Shakti How do you provide access to affordable electricity to the rural poor? 70% of Bangladesh population were not served by the electricity grid How do you create jobs for the local community at the same time? Case Example: Grameen Shakti
- 39. Reduction of health problems from kerosene lamps No. of empowered women entrepreneurs No. of rural households w. electricity Local Women Affordable electricity Empowering Local Women Direct Sales & Installation by Local Entrepreneurs Off-Grid Rural Communities Social Business Model of Grameen Shakti (I) Improved learning by school children Home Solar System Microcredit + Installments
- 40. Reduction of health problems from kerosene lamps No. of empowered women entrepreneurs No. of rural households w. electricity Local Women Affordable electricity Empowering Local Women Direct Sales & Installation by Local Entrepreneurs Off-Grid Rural Communities Social Business Model of Grameen Shakti (I) Improved learning by school children Home Solar System Microcredit + Installments
- 41. Reduce carbon emissions Carbon positive companie s Impact measurement / tracking Emissions brokers Carbon Credit Markets Reduction in carbon emissions Reduction in health problems No. of empowered women entrepreneurs Increased savings with more efficient products Clean Cookstoves Social Business Model of Grameen Shakti (II) Microcredit + Installments
- 42. THANK YOU