FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION

(HONS.) ENTREPRENEURSHIP

INNOVATION & TECHNOLOGY MANAGEMENT

(ENT652)

INDIVIDUAL ASSIGNMENT
BUSINESS MODEL CANVAS

SMART CITY BINS

PREPARED FOR:
DR. EHSAN FANSUREE BIN MOHD SURIN
PREPARED BY:
SHARIFAH NUR AINNA BINTI SAYED MASHOR
(2017111195)

GROUP:
BA2315A
SUBMISSION DATE:
20th MAY 2020

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ACKNOWLEDGEMENT

I would praise Allah for the unmerited grace, favor, perfect health, strength and
motivation during the entire process of completing this assignment.

Secondly, I would like to acknowledge my lecturer, Dr. Ehsan fansuree bin Mohd
Surin for his guiding, supporting and motivation to see the accomplishment of this
assignment.

I convey my sincere appreciation to my family for giving a time for me to finish my

assignment at my study room without disturbing me. Finally, I would like to thank my
friends for helping me in completing this assignment. Without my friends, I may not
be able to complete it.

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TABLE OF CONTENT

NO CONTENT PAGES
1 Introduction 4
2 Business Model Canvas 5
3 Customer Segments 6
4 Value Propositions 7
5 Channels 7-8
6 Customer Relationships 8
7 Revenue Streams 8-9
8 Key Activities 9
9 Key Resources 10
10 Key Partners 11
11 Cost Structures 12
12 Conclusion 13

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INTRODUCTION

Today main issue for pollution is Garbage Overflow. It creates unhygienic condition
for the people and creates bad smell around the surroundings this leads in spreading
some deadly diseases and human illness. To avoid all such situations, I was going to
implement IoT Based waste management using smart dustbin. The Internet of
Things (IoT) is a concept in which surrounding objects are connected through wired
and wireless networks without user intervention. In this system multiple dustbins are
located throughout the city or the campus, these dustbins are provided with a sensor
which helps in tracking the level and weight of the garbage bins and unique ID will be
provided.

Once the bins are full then user will not be able to access the bins. In such
circumstances, the bin displays the direction of the nearby bins on LCD display also
generate the voice messages if the user place the waste on the floor. The status of
the bin is accessed by the concerned authorities from their place with the help of the
Internet and an immediate action will be taken to replace overflowing bins with the
empty bins.

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BUSINESS MODEL CANVAS

 Waste collection
 City council  Waste processing  Quality service  Users dispose  Users / citizens
 Concessionaire  Recycled waste for waste waste in
 The City Council
company sales containers
collection, at  The companies
 University  Manage lower economic  Users inform
that buys waste to
 Truck and information costs and less about damaged
process recycled
container collect by sensors containers
environmental waste
providers impact  Personal and
 Processing plant exclusive
equipment assistance
 Users

 Promotional
 Employees materials
 Sensors and data  News in the
management media
platform  Public
 IoT technicians conferences,
 Trucks and workshops
containers  Emails from
 Waste processing citizens
plant  Mobile app for
ciitzens

 Employee salaries
 The City Council uses collected taxes to pay the
 Logistic expenditures (trucks, fuel and containers,
Concessionaire a subscription fee
platform and smart sensors)
 Recycled waste sales
 Waste processing plant
 IoT service management cost

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Business model canvas proposed by Osterwalder and Pigneur (Business Model
Generation 2010). Osterwalder et al. (2005) defines a business model describes the
rationale of how an organization creates, delivers, and captures value. Osterwalder
also asserts that business model is the blueprint of how a company does business.
The business model canvas of Osterwalder containing nine components is a good
base for a business model platform with social enterprise.

1) Customer Segments

For whom are we creating value? Who are our most important customers?

Customer segments are groups of people or organizations we aim to reach or

serve. Every company needs profitable customers in order to survive. Using
the business model canvas, we can determine what our customer segments
will be.

The customer for this product is the City Council because to turn the city into
smart city by using Smart Bins. By using Smart Bins, it can reduce the
pollution on garbage overflow and also it can reduce the bad smells from the
overflow garbage around the surroundings

Other customers for Smart Bins are the companies that buy waste to process
recycled waste are also clients for the company. Smart Bins can use in any
other place like office, campus or house to create a hygienic condition in
surrounding.

The relation with the customer is using the application of the Smart Bins itself.
It also can be personal and exclusive assistance from the concessionaire to
the city council.

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2) Value Propositions

What value do we deliver to the customer? Which one of our customer’s

problems are we helping to solve?

The business model canvas value proposition provides a unique combination

of products and services which provide value to the customer by resulting in
the solution of a problem the customer is facing or providing value to the
customer.

Smart Bins is a quality service for waste collection at lower economic costs
and less environmental impact. It is because people are always interested in
improving waste management but do not claim massively for it and the
reduction of the total cost of the service is an important saving for municipal
budgets.

3) Channels
Through which channels do our customer segments want to be reached? How
are we reaching them now? Which ones work best?

The channel building block describes how a company communicates with and
reaches its customer segments to deliver its value proposition. It is important
to understand which channel is best for company to reach the customers. An
organization can choose between reaching its customers through its own
channels (B2C), partner channels (B2B), or through a mixture of both.

Channel functions:
1. Raising awareness among customers about the products and services
2. Helping customers evaluate a company’s value proposition
3. Allowing customers to purchase specific products and services
4. Delivering a value proposition to customers
5. Providing post-purchase customer support

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 The channels that I have decided to make a promotion using a promotional
material like corporate website, brochures, advertising and the surveys or
reviews. By doing this thing, it can help me to have a solid customers who are
going to buy and use my products. This allows me to do the public
conferences and hosting the workshops for the users to get ain information
about Smart City Bins product. This product provides mobile applications for
citizens to use the Smart City Bins.

4) Customer Relationships

What type of relationship does each customer segment expect us to establish?

Which ones have we established? How costly are the customer relationships?

Customer relationships describe the type of relationship a company

establishes with its specific customer segments. Customer relationships are
driven by customer acquisition, customer retention, and boosting sales or in
other words that need to get, keep, and grow your customer relationships.

For the customer relation, I used a self-service relation because users

dispose waste in container by using my product which is Smart City Bins. For
the damaged containers, users can inform by using application and managing
personal waste based on information from the application.

5) Revenue Streams

For what value are our customers really willing to pay? For what do they
currently pay? How are they currently paying? How would they prefer to pay?

A revenue streams is the building block presenting the cash a company

generates from each customer segment. Most businesses need at least one
great revenue stream to earn money.

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 For the revenue streams of Smart City Bins, taxes to pay the company have
been collected by city council. It is because to pay for the server provider and
a subscription fee. My company also can get the revenues is from the
recycled waste sales because the recycle company buy the waste to process
recycled waste from Smart City Bins dispose waste.

6) Key Activities

What key activities do our value propositions require? What key activities do
our channels require? What key activities do our customer relationships
require?

Key activities are the most important activities in executing a company’s value
proposition. it represent what the company must do to make the business
model work. These activities can be producing a product or providing a
service, or a mix of both.

As the title suggests, the most important tasks a company must carry out to
fulfil the business purpose. To be successful, company must carry out key
actions that are primarily dictated by its business model. Key activities are
different according to the business model of the organization carrying out
activity. Hence, an organization that relies heavily on its third party contracts
will list channel management as a key activities.

The activities for my company are a waste collection and management of

information that has been collected by sensors through the big data platform.
Next, is the waste processing by the Smart City Bins and the recycled waste
that been sell to the recycled centre company.

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7) Key Resources

What key resources do our value propositions require? Our distribution

channels? Customer relationships? Revenue streams?

Key resources are the main inputs that the company uses to create its value
proposition, service its customer segment and deliver the product to the
customer. These are the most important things that need to have for business
model to work and business models are usually based on number of tangible
and intangible resources. key resources deal with the operational end of the
business spectrum and define what kind of materials need, what kind of
requirement is required and the types of people that need to employ.

The business model of an organization is a major indicator of the type of key

resource being utilized by the company. Key resources are directly relevant to
the number and type of key activities your company engages in. Ultimately,
the quality of key resources will impact the sustainability and profitability for
company.

o Employees (dustmen, administration staff and data managers)

o Sensors and data management platform
o IoT infrastructure technicians
o Trucks and containers
o Waste processing plant
o The company previous experience in tender process for municipal
waste management is an asset for future public tenders.

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8) 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?

This building block refers to the network of suppliers and partners that make
the business model effective. The reasons for a company opting for a
partnership are myriad, but healthy partnerships are instrumental in making a
business success or a failure. A company can optimize its resource utilization,
create new resource streams or mitigate risks behind major business
decisions by taking on a partner before starting a new course of action. It is
important to note here that the organization maybe partnering with a number
of organizations for various reasons, but not all their relationships will be key
to the business.

Partnership can change over the course of a business lifecycle. The types of
partnerships that may be a necessity during year 1 of a start-up will differ
significantly from the nature of the required partnership in year 3.

The main key partner of my company is city council, Concessionaire

Company and university. It is because the company that been a partner is
also the customer of Smart City Bins.

Other key partners are the truck and container providers and processing plant
equipment providers. The users also a key partners to the company because
as they inform about the damaged containers and manage personal waste
using the mobile applications.

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9) Cost Structure

What are the most important costs inherent in our business? Which key
resources are most expensive? Which key activities are most expensive?

Cost structure defines all the costs and expenses that company will incur
while operating business model. This final step in the process is important,
because it will help the team decide whether to pivot or proceed. Value driven
cost structure is to create more value in the product itself, not necessarily
producing the product at the lowest possible cost. On the other hand, cost
driven cost structures focus on minimizing the costs of the product or service
as much as possible. In order to populate the cost structure block of business
model canvas, team must consider the most important costs to business and
create hypotheses for these expenses.

The cost structure of this company is on the employee salaries and logistic
expenditure which is trucks, fuel and containers, platform and smart sensors.
The initial economic investment is bigger due to greater equipment
requirements, but in the long term a more efficient technology allows to
reduce the overall cost of the service.

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CONCLUSION

In this system of Smart City Bins, the information of the dustbin can have accessed
from anywhere and anytime. This system will help inform the status of each dustbin
in real time. So, waste management can send the garbage collector to pick up the
garbage when the dustbin is full. The sensor will collect the data and sent to
microcontroller to display on LCD. Therefore, waste management can be monitor.

However, if there is a limited coverage or availability of network, the wifi module will
not be working thus will disturb the whole system. Additionally, the system can
improve by designing a system that can identify different type of garbage by using
image recognition in avoiding mistakenly put the garbage at the wrong bin. By
implementing this system, it will reduce cost, man power and indirectly reducing
traffic in that place.

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