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BUS I NESS MODEL CANVA S

Prof. Bhasker Vijaykumar Bhatt


Assistant Professor in Civil Engg. Dept.
Sarvajanik College of Engg. & Tech.,
Surat

GTU CIRCULAR

http://www.gtu.ac.in/circulars/15Mar/10032015.pdf

All student teams have to develop and prepare a BMC with respect to
their project.
They also need to upload the prepared report on BMC at the project
site.
Students will be intimated when the facility to upload the BMC canvas &
report will be made live.
Detailed circular/guideline related to all canvas including BMC is already available at:
http://files.gtu.ac.in/circulars/14SEP/09092014_04.pdf

It is intended to strengthen
BE IV Students Strategically
For all branches at SCET, Surat

It is an answer to

I want to
develop a clear plan
on how to grow
my idea into
something bigger
Osterwalder A., Pigneur Y (2010) Business Model Generation

Reference: Osterwalder A., Pigneur Y (2010) Business Model Generation

A One-page answer to
The both,
What you do (or want to do), and
How you go about doing it
It enables structured conversations around management and
strategy by laying out the crucial activities and challenges
involved with your initiative and how they relate to each
other.
Reference: Osterwalder A., Pigneur Y (2010) Business Model Generation

rkflow path suggested by Prof. Bhasker V. Bhatt, to make easy understanding at first hand for Students of engineering

Osterwalder A., Pigneur Y (2010) Business Model Generation

CAN WE CREATE A BALANCE HERE?

How?
To make a Business Model Canvas, the easiest way to start is by filling
out what you do.
Start from a blank canvas and add notes with keywords to each
building block of the canvas.
If you use sticky notes for this, you can move ideas around as you fill
out each building block in the canvas.

Caution
Dont fall in love with your first idea

Instead
sketch out alternative business models for the same product, service,
or technology.

A products value proposition is a statement of


the functional, emotional and self-expressive
benefits delivered by the brand that provide value to
the target customer (for example, cost savings, time
savings, revenue increase, customer/employee
satisfaction), and how much of it the customer can expect

Value must always be considered from the buyers perspective.


Understanding the customers role (that is, economic buyer, technical buyer, end-user) is critical
when developing a value proposition.

For the customer to consider buying your product, your


value proposition must
Be superior not only to the competition but also to doing
nothing (that is, the status quo).
Differentiate you from the competition and focus on your
products unique benefits.

Demonstrate an understanding of what your customers are


trying to achieve.

Activity 1: Key business model questions


Write a brief response to the following questions.

1. How do you acquire customers?


2. After you have landed a new customer, how do you plan to relate to that customer and manage
the relationship (if at all)?
3. How do you charge your customers? What is your revenue model?
4. How much do you charge your customers? Can you calculate your revenues for the next month,
quarter and year?
5. What assets are available to you or under your control?
http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 1: Key business model questions


6. Who are your key partners?
7. What key activities do you need to engage in to deliver your value proposition?
8. What are your fixed costs?
9. What are your variable costs? Can you calculate your total cost for the next month, quarter and
year?

10.Does your revenue forecast demonstrate increased profitability towards the end of the
forecast period?

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 2: Create your own business model


KEY
PARTNERS

KEY
ACTIVITIES

<< list your partners


here>>

<< describe your key


activities here>>

KEY
RESOURCES

<< list the key resources


available to you here>>

COST STRUCTURE

<< Describe your cost structure here>>

VALUE
PROPOSITIONS

<< insert your value


proposition here>>

CUSTOMER
RELATIONSHIPS

<describe how you plan to


establish and manage the
relationship between the
customer and your brand
here>>

CUSTOMER
SEGMENTS

<< describe your


target customer
segment here>>

CHANNELS

<< describe 1) how you


plan to acquire
customers, 2) how you
plan to deliver your value
proposition to them and
3) how you plan to
communicate with your
customers >>
REVENUE STREAMS

<< describe your revenue streams here>>

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

What next during BE IV?


Answers in Activity 1 will frame the REPORT
Answers in Activity 2 will frame the BMC
Next
Convert your BMC & Keep it in a soft format (.jpg / .ppt or similar)
Next
Make an exhibition of canvas for student friends and faculties within
semester (Department level exercise, it is not the Project Showcase)
Get their views/ reviews/ comments/ suggestions
Modify the BMC
Finalize and keep ready to submit to GTU as and when asked

Convert your work in


strategy
(Not in syllabus at BE IV, but for future path ahead)

Activity 3: Consider your business model


Does it work? Do the revenues outweigh the cost? Try estimating revenues
and cost for the next month ( or the first month of sales, if you are without
revenue for now)

What are the risks to your business model? What parts of your business
model are most critical for your business to grow in a profitable manner?

Are there things that can or should be changed to strengthen the business
model or reduce its risk?
http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 4: Clarify your business model assumptions


Check each response in the Building Model Canvas against the following criteria:
How do you know what you wrote in each building block is true? Have you
made an assumption or do you have solid evidencein the form of
documented facts?
In the cases you have facts, label the response as Fact and make a note of your evidence.
In the cases you have made assumptions, label the response as Assumption.

Complete the activity by listing all the assumptions regarding your business
model on the next slide.
The next section will address how to test those assumptions.
http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 4: Clarify your business model assumptions


(contd)
List your assumptions about your business model
No.

Question

Fact (with evidence)

Assumption

1.

2.

3.

4.

5.

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 5: Prepare to meet customers/ users


Prepare the materials needed before you meet potential customers/ users: (create a
checklist of the points below)
Materials/ Technology/ Product

Information (Handout)
Presentation/ PDF/ PPT/ JPEGs
Website/ Webpage
Other (demo/prototype/case study)

Channel strategy description (Whom to meet, when and where)


Sales process description:

Economic buyer
Other stakeholders involved in customers buying process
Steps in and duration of sales process
Expected deal size
Pricing options

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 6: Update your documentation


Document your sales roadmap by answering the following questions.
Who are the stakeholders involved in the customer's buying process?
Who typically plays the roles of influencer and economic buyer?
What are the stages and the length of the sales cycle?
What is the profile of the typical buyer?
What is the best sales strategy?
http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 6: Update your documentation (contd)


Create your positioning statement using the following template.

For What?
Who. Will use?

Our product/ process/ technology is


That provides
Unlike (competitive factors, if any)
We have assembled/created/invented a product/ process/ technology that.
http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Activity 6: Update your documentation (i.e. next of BMC version)


KEY
PARTNERS

KEY
ACTIVITIES

KEY
RESOURCES

COST STRUCTURE

VALUE
PROPOSITIONS

CUSTOMER
RELATIONSHIPS

CHANNELS

REVENUE STREAMS

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

CUSTOMER
SEGMENTS

Activity 7: Plan your next steps


Take the required steps to implement your business model
(make a checklist of the items below):
No. Activity
1.

Develop a revenue forecast

2.

Put together a marcom strategy


to generate demand and shorten
your sales cycles

3.

Create a product roadmap

4.

Continue to engage with


customers on your initial target
list

5.

Plan for growth

Deliverable

Deadline

Responsible

http://www.marsdd.com/mars-library/building-blocks-of-the-business-model-canvas/

Convert your work in Future


Business
(Not in syllabus, but for future path ahead)

Examples
For understanding the concept on BMC
For BE IV Project based on
Process OR
Product OR
Technology

Product: Soap Sponge

References
Aaker, D.A. (1996). Building Strong Brands. New York: Free Press.
Blank, S.G. (2005). The Four Steps to the Epiphany. Self-published: Cafepress.com.
BUSINESS MODEL ALCHEMIST (HTTP://BUSINESSMODELALCHEMIST.COM/TOOLS) AND (Strategyzer.com)
MaRS DISCOVERY DISTRICT (http://www.marsdd.com/mars-library/value-proposition-a-reflection-of-therelationship-between-your-customer-and-brand/)
Building blocks of the business model canvas (http://www.marsdd.com/mars-library/building-blocks-of-thebusiness-model-canvas/)
Video Lecture tutorial (http://www.marsdd.com/mars-library/business-model-canvas-entrepreneurship-101201415/)
http://www.slideshare.net/svanebjerg/business-model-canvas-9238780

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