ENT 600

TECHNOLOGY ENTREPRENEURSHIP

INDIVIDUAL PROJECT

BUSSINESS MODAL CANVAS (BMC)

PREPARED BY :
NAME ID NO COURSE CODE
SAIFUL BADRI BIN SOBRI 2017428198 EC221

PREPARED FOR :
LECTURER’S NAME : DR NOR AMININ KHALID
SEMESTER : MARCH – JULY 2020
DUE DATE : 19.6.2020

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TABLE OF CONTENT

NO TITLE PAGE

INTRODUCTION
1.0 3
1.1 Background of BMC

BUSINESS MODEL CANVAS

5
2.1 Customer Segment
5
2.2 Customer Relationship
6
2.3 Channels
7
2.4 Value Proposition
2.0 8
2.5 Key Activities
9
2.6 Key Resource
9
2.7 Key Partnership
10
2.8 Cost Structure
10
2.9 Revenue Streams

3.0 CONCLUSION 11

4.0 REFERENCES 12

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1.0 INTRODUCTION

Business Model Canvas (BMC) is a strategic management tool to quickly and

easily define and communicate a business idea or concept. BMC can clearly show
my business idea on a piece of paper that allows us to visualize the business
model, detect weaknesses and test and if use carefully can help me to extend
whether the idea for the businesses can work or vice versa. BMC usually produce
by the brainstorming from me which focuses on test alternatives for the business
idea and find the new combination possibilities where the idea are sketch segment
by segment. It is usually the visual chart with the nine elements consist of value
proposition, customer segment, channel, customer relationship, revenue stream,
key resources, key activities, key partners and cost structure.

The BMC report on my product which is VC study desk for high rack can act
as the business plan. The goal is to look beyond spreadsheets, market research and
financial projections. It is interesting to note that although the main focus of the
BMC is to establish the foundation of the business model, it also may help in
enhancing my business as it evolves. There are many advantages on BMC I can
take from my new idea product which is, I have an overview of what my business
model really is, I can also cut which activities are not important. Moreover, by
using BMC, I can clearly stacking my idea into a cleared structured form. In other
words it can offers me an overview of the business idea from every perspective
thus, make it easier for the company executing the project of producing the VC
Study Desk for high rack product.

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 Business Model
Canvas

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSITION RELATIONSHIP SEGMENT
o Supplier for o Marketing o Newness to o Membership o Targeted
raw o Research and the existing discount Customer
component Development classical o Call center o Gender
and materials o Product product and o Potential
o Research and Manufacturing o Aesthetic personal customer
development o Selling and element on assistant
partner delivering the the design of
o Marketing product the VC
Partner o Networking study desk
o Affordable
price for the
Key Resources targeting CHANNEL
o Integrity and customer o Channel to
quality worker raise
o Facility to awareness
manufactur of the
e the product by
product advertising
o Patent or o Channel to
copyright of purchase the
the product product
o Channel to
deliver the
product

COST STRUCTURE REVENUE STREAM

o Cost-driven structure o Retail profit and product sale

o Cost characteristic o Additional sale

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2.0 CUSTOMER SEGMENT

Customer segment is the part of where it defines the groups of

people or organizations you aim to reach or serve. Every company
needs profitable customers in order to survive. Using the business
model canvas, I can determine what my customer segment will be, who
are the customers, what do they think and fell about the product.
Targeted customer is student and office employee. Gender for targeted
customer can be used to both male and female. Potential customer
needs for the small place to locate more goods such as home and office
or any room can fit with the product.

3.0 CUSTOMER RELATIONSHIPS

Customer relationship is one of the 9 blocks in the BMC. This

section is discussing on the relationship of the company with the
customer upon during or after buying the product. This segment is
important as the current customer that are satisfied to the product or
services may be become our promoter to other new customer. First of
all, membership discount. The customer that been applied to become
member with the company would get discount. The retailer that act as
our product distributor also automatically become the membership.
After that, personal assistant. It may help the customer upon handling
the VC Study Desk wisely, instant reply to the question from the
customer.

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4.0 CHANNELS

Channel segment in BMC describing how our product can reach the
customer segment to deliver then value proposition. It is important for all the
company to understand which channel is best to reach the company. I have been
divided each channel for making sure how my product reaches my targeted
customer. Channel to raise awareness. This channel is the first phase on how my
company can pull the targeted customer awareness of my product. For this
product, the product advertising is one of my choices. By fully utilizing the social
media such as Facebook, Twitter and Instagram with paid advertising and
influencer promotion. My targeted customer may know that this product is
available and ready to be purchased. Channel to purchase the product. This
channel is when the customer is interested and ready to buy my product. Some
channel that I used might by online purchasing the VC Study Desk my product
would be available in the online retailer such as Shopee and Lazada. The second
one is, the interested customer can go into my company website to purchase.
Channel to deliver the product. This channel is on how my product would be
delivered to my customer, I would prefer the courier such as J & T Express and
other same company that works on delivery services. Moreover, by direct sale on
the shop by our retailer that can be called as our product distributor

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5.0 VALUE PROPOSITION

The value proposition is the segment that compelling about the proposition
of my products of why do the target customer need to buy VC Study Desk for high
rack, what value do the product deliver to the customer, what is the problem that
VC Study Desk tackles compare to existing similar product. For the VC Study
Desk, there are some value proposition that can be identified. Newness to the
existing product. Compare to the existing study desk that expensive and boring, I
have been simpler and compacted the shape and added some function which is
same with the original existing study desk. Some of the newness my product is
added with mp3 player and Smart screen. Moreover, VC Study Desk using
electrical energy like another device. Besides, Aesthetic element on the design of
VC Study Desk. For the new product development, I am emphasizing an aesthetic
element into VC Study Desk product design in order to give an attractive visual or
good first impression about my product. These Aesthetic designs will be
influencing on how people think and feel how much pleasure we feel from the
product. Then, Affordable price. Even though the product having the good
function with an aesthetic design, the price of the VC Study Desk is still affordable
to the target customer with respect to its function.

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6.0 KEY ACTIVITIES

Key activities are the most important activities in executing the company’s
value proposition. The question on what key activities do the VC Study Desk
value proposition require, what key activities product’s channel require as well as
what key activities do the targeted customer relationship require are an important
thing in order to fully understanding my company key activities to produce our
product. Some of key activities that been identified are marketing. In order to
reach our targeted customer, the need of marketing is the first step to our key
activities because marketing functions start from identifying the consumer needs
and end with satisfying the consumer needs. Marketing also function as a
gathering the market info and analyzing that info. Market planning and strategy
formation. To assist in product designing and development also comes under the
marketing functions. Next, research and development. Upon gathering and
analyzing the market info, research and development can be executed in order to
meet the satisfaction between the company and the customer. The product design
and function usually respected to the research and development of each company.
After that, product manufacturing. The VC Study Desk is manufacture and design
in our facility by the workers as the end product. Usually, the product
manufacturing execute after the marketing and research and development is done.
Besides, selling and delivering the products. When the product is finished and the
customers are interested to buy, the company needs to execute the product selling
and delivery. In my company, we use the retailer as a product distributor and
courier as delivery services for the product to go to the customer or consumer.
Lastly, networking. Networking is also important to the company running the
business, raw materials supply and delivery services as well as finding the right
partner for research and development is the key aspect for my company to expand
the networking.

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7.0 KEY RESOURCES

Key resources are important to create value for the customer, it is also
considered as the assets to a company that are needed to sustain and support the
business. The key resources may vary with human, financial, physical and many
more. For this company, some of the key resources are integrity and quality
worker. To keep the product, meet the expectation of the customer, a good attitude
worker is a must. The employee also needs to be trained accordingly and has the
skill. Moreover, to avoid the potential business dishonesty, an employee must have
a sense of integrity. Furthermore, facility to produce the product. The company
also have the production facility, where the Sorting Machine is built, install and
repair here. In other words, this facility is an important part in order for the
business running well. After that, patent or copyright of the product. VC Study
Desk having the copyright or patent gives the company the right to stop others
from plagiarism, manufacturing, selling or importing the invention without the
permission. My company also get protection for a pre-determined period, allowing
the competitors at bay.

8.0 KEY PARTNERS

In order to optimizes operations and reduce risk for the business, my

company involved in the relationship business, governmental, non-government or
can be the non-targeted customer entities in order to help my business model work.
Some of the key partners for my company are supplier for raw component and
materials. In order for my company focuses on other activities such as
manufacturing process, the partnership for the component supplier must be chosen
accordingly and carefully. By doing so, the process of manufacturing can be done
smoothly. Second, research and development partner. My company been trying to
work together with the government authority in order to help the product
manufacturing, design and function at the best and peak condition. Then,

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 marketing partner. My company been joined venture with other vendors to develop
online platform channel for the customer to purchase the product such as Lazada
or Shopee.

9.0 COST STRUCTURE

This final segment defines all the cost and expenses the company will incur
while operating the business. This segment also determined whether the project
can proceed or canceled. There are two main categories for the cost structure
which is cost-driven and value-driven. My product been fall into cost-driven since
our targeted customer is focusing on the student who really need better study desk
and not every student can afford it except office worker. Cost-driven defined as the
cost structure that focusing on minimizing the costs of the product or services as
much as possible. There some cost characteristics when executing this business
which is fixed cost. The example of this cost is rent of the facility manufacturer
and salary of the employee or worker. Also, variable cost. Cost for the raw
component or raw materials that depend on the economic factors. Another
example of the variable cost is marketing cost.

10.0 REVENUE STREAMS

Revenue stream is on how my company generate cash or profit from this

product. For the VC Study Desk, one of the main revenue streams is on retail
profit and product sale. Every unit of VC Study Desk sold is consider as cash
profit, that exclude the other cost such as operating cost, acquisition cost. Then,
additional sale. Spare-part sale of the VC Study Desk, since it is consisting of
electronics parts (socket and Wire) and non- electronics part (plate and gear), all
the part is available individually considering if the product having malfunction or
broken.

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11.0 CONCLUSIONS

As a conclusion, the Business Model Canvas (BMC) is an important thing to

execute as it guides the company thinking through each of the key segment or
blocks for devising a business model. Using a tool like the Business Model Canvas
can serve to unite my company under a clear visualization of where your
organization sits today and where it can be tomorrow. For example, what is the
strongest revenue streams are and how they can complement each other or closely
examine the value propositions and discover better ways to position the product or
service to customers. Use customer segments to find out exactly who is the
customer the company looking for and how to approach them more effectively. By
focusing on aspects apart from product development, it gives me the competitive
edge to launch a profitable start up.

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12.0 REFERENCES
 "Internal Communication Canvas". eee.do. 2016-04-28. Retrieved 2016-
05-28.
 Bocken, N.M.P.; Rana, P.; Short, S.W. (2015). "Value mapping for
sustainable business thinking". Journal of Industrial and Production
Engineering
 "Business Model Canvas for User Experience". grasshopperherder.com.
2012-06- 19. Retrieved 2012-06-20.
 "Lean Model Canvas vs. Business Model Canvas".
practicetrumpstheory.com. Archived from the original on 2014-04-26.
Retrieved 2014-04-25.
 Business Model Canvas Explained. (n.d.). Retrieved from
https://eship.ox.ac.uk/business-model-canvas-explained/

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APPENDICES

Figure 1 shows Business Model Canvas Templet

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