FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION

(HONS.) ENTREPRENEURSHIP

ENT652
INNOVATION & TECHNOLOGY MANAGEMENT

INDIVIDUAL ASSIGNMENT
BUSINESS MODEL CANVAS
Kharls TOOLBOX JEWELS

PREPARED FOR:
DR. EHSAN FANSUREE MOHD SURIN

PREPARED BY:
BA2315A
KHAIROL SYAFIRAH BINTI KHAIRUL BAKHRIN (2017732879)

SUBMISSION DATE
20TH MAY 2020
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ACKNOWLEDGEMENT

First of all, all praises to Allah SWT for giving us this opportunity to be part in this
ENT652 of Innovation & Technology Management as part of passing requirement of this
semester. I do believe that throughout this semester, I have a learned a lot of knowledge of
innovation of business and how to implement innovation in a business.

In the meantime, I would like to thank to University, UiTM Puncak Alam especially
Faculty of Business Management for giving me this opportunity to learn this subject as it is
meant for us to have a better exposure regarding businesses. Besides, I sincerely thankfulness
to my beloved Dr. Ehsan Fansuree Mohd Surin as my lecturer of Innovation & Technology
Management for guiding and supporting my friends and I in this journey. With his guidance, I
managed to know more about business and other important components to start up a business
as in innovation.

Not to forget, I would like to thank to my parents for giving me time to be at my room
doing this assignment without disturb me. Finally, I would also like to thank my friends for
helping and guiding me in completing this assignment in many aspects. Without their help, I
may not be able to complete this assignment successfully.

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TABLE OF CONTENT

No. Content Pages

1. Introduction 3

2. Kharls Toolbox Jewels Business Model Canvas 4

3. Customer Segments 5

4. Value Propositions 6

5. Channels 6-7

6. Customer Relationships 8

7. Revenue Streams 8-9

8. Key Activities 9-10

9. Key Resources 10-11

10. Key Partners 11

11. Cost Structure 12

12. Conclusion 13

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INTRODUCTION

The project ‘Toolbox Children’ is about designing an innovative piece of jewellery. This
kind of business innovation is to design a piece of intelligent jewellery that respects and
enhances the traditionally values of jewellery. Innovation can take place on the levels of
concept, material and production method. This report will tell about the process and the
different of business of toolbox. It is written based on business model canvas which will help
to understand a business model in a straightforward, structured way. Using this canvas will
lead to insights about the customers we serve, what value propositions are offered through
what channels, and how our company makes money. It will tell about how the concept was
formed and it will describe the different aspects of the concept. The project and company
behind this is given the name Kharls Toolbox Jewels, where the child would create jewellery in
co-creation with a goldsmith.

Concept

The concept makes it accessible for children to make precious jewellery. This will be
done by offering a service based on a toolbox to facilitate jewellery making for children in
precious metals. It provides the tools and instructions to make a nice model and helps with
scanning the object. The model and preferences about the jewellery is send to Kharls Toolbox
Jewels. The jewellery is then produced by a third party by either printing or casting. There will
also be a suggestion to give the jewellery to a beloved one. The concept focuses on facilitating
in the process of making the jewellery and enhance the experience for the child and possible
a beloved one who receives a piece of jewellery as a present

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 Kharls Toolbox Jewels Business Model Canvas

Key Partners Key Activities Value Proposition Customer Customer Segments

 my3Dshoppe  Designing Relationships  The parents
 App platform products Make jewellery  Give of the
developer  Distribute design accessible for instruction children
 Producer of toolbox children by offering through online  Children
toolbox  Maintain and them tools and video from 8-12
manage the instructions to  Offer support years old
app platform sculpt their own through the
 Development object and facilitate application
the translation to a and a call
piece of jewellery. center
 Toolbox with  Offer design
clay and options
Key Resources tools Channels
 Toolboxes  Producible in  Online
 App platform precious webshops like
 Helpdesk and metal toysrus
platform  Service with  Sell in toy
maintaince videos and shops
team app  Kharls Toolbox
 Office and Jewels
other assets website
 Promotion
through same
channels
Cost Structure Revenue Streams
 Production of toolboxes  Selling the toolboxes
 Helpdesk and platform maintenance team  Part of the profit of extra ordered
 Production of jewellery pieces of jewellery
 Invest in app platform  Part of the profit of items that enter
the shop
 Promotional items
 Website’s advertising

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 The Business Model Canvas is created by Alexander Osterwalder, is an entrepreneurial
tool that enables us to visualize, design, and reinvent the business model. Using the BMC, we
can develop a clear view of our value proposition, operations, customers, and finances. As a
small business owner, we can use it to identify target market segments and how to appeal to
those segments. BMC has nine different areas of focus that make up building blocks in a visual
representation of our business.

1. Customer Segments
For whom are you creating value? What products and services are you offering to each
customer segment?

Customer segments are a community of customers or businesses to which we are aiming

to sell our products or services. Customer segments are one of the most important building
blocks for our business model canvas, so getting this building block right is the key to our
success.

The customers for this product are children from 8-12 and their parents. The parents can
reached through online shops like Shopee, and toy shops. The product operates in the top
of the segment of other ‘making packages’. The toolbox with the application and one print
included is quite expensive in comparison with existing ‘jewellery making’ packages. But it
is hard to compare the toolbox to these packages because they consist of plastic beads and
are only focused on girls.

The relation with the customer is mostly through the application platform and the
instruction videos. On the platform we offer the customer options to ‘design’ their
jewellery. Besides this we also offer a helpdesk through the application and a call centre.
Before the piece of jewellery is send to the customer or a beloved one of the customer a
teaser will be send, like a movie of the production of the jewellery to enhance the
experience. The customers are reached by advertisement on for example the toysrus
website. Besides that, there has to be a proper social media strategy to promote the
product online. Because children from 8 to 12 are not very active on Facebook yet there
also has to be advertised in toy store or television.

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2. Value Propositions
What value are you going to deliver to the customer? Which customer pain-points are you
addressing?

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. This is the point of intersection
between the product we make and the reason behind the customer’s impulse to buy it.

The product makes precious metal jewellery design accessible for children in an entirely
new way. The product also facilitates in the process and provides the service around it. It
facilitates the translation from a clayed object to a piece of jewellery. The customer is
offered a toolbox with clay and tools and service with an application and videos. The
concept is a bit of a multi-sided platform. The biggest key partner is also a kind of customer.
The jewellery production should be done by the key partners, or a similar company. We
not only provide orders for key partners, but also enthusiastic young customers who get a
taste of what is possible with 3D design and printing.

3. Channels
Which channels are to be focused on to reach the desired customer segments? How are
those channels integrated? Which ones are the most cost-effective?

Channels are directly linked to the how of a company linking with its target customer
segment. Most companies have a different medium to attract a customer and separate
strategies on how to retain them. It is advisable to list separate channels for different
customer segments if your organization is targeting more than one.

Functions of channels
Listed below are some of the purposes of a typical channel:
1. A medium through which an organization can educate its chosen customer
segments about the products and services it provides.

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 2. Providing customers with an opportunity to study and evaluate the organizations
value proposition.
3. Providing customers with the facility to buy their chosen products or services.
4. Providing the customer with the Value Proposition.
5. Providing the customer with after sales services.

Having decided to focus my business on selling toolbox jewellery products to children from
8-12 years old, I now need to figure out how to reach potential customers and how to
deliver my products to them. This is an important phase for the success of my business and
to enable it to grow. I realize that sitting at home and waiting for customers to buy is not
really the best way to grow or scale my business. So, I must go to the local toys market to
get to know my customers. I have in mind that once I know them, I would open my own
small store close by. While doing so, I will start to save a little money every day to be able
to afford the store rent.

During this initial period of my business, I slowly start to develop a loyal customer base of
people whom I get to know at the local market. This help me prepare for the store opening
day. On that day, I plan to have a solid number of customers who are going to buy my
products. This would not only help me pay the store rent but also help me grow the
business. In one year later, I would decide to expand the number of customers by setting
up a website. This allow me to sell the products online to people outside of my own town
as well as those living in other parts of the town who do not yet know my business. Having
a website also builds trust in the business. I think to connect with a young woman student
on UiTM whom to help me create the website. She would help me to set up a Facebook
Business Page to drive traffic to my website.

Other than that, online shopping like Shopee will be the next channel. The important in this
phase of my business expansion is how I deliver the products to my customers. I do not
have my own vehicle but know people who have small trucks. I make a deal and pay them
from my sales each time they deliver my products.

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4. Customer Relationships
What type of relationship do you maintain with each customer segment? What are the
expectations of your customers? How to establish them? What would be the associated
costs?

Customer relationships describes the type of relationship a company establishes with the
specific customer segments. Customer relationships are driven by customer acquisition,
customer retention, and boosting sales. In other words we need to get, keep, and grow our
customer relationships.

o Give instruction through online video – For the user this begins when they read the
instructions and scan the QR-codes. They will get online instruction videos to help
them with making an object out of clay and scan the object.
o Offer support through the application and a call center – With another QR-code
they can get the application that will give them access to a platform were they can
scan an upload their model and choose what kind of jewellery they want. The
software should provide series of options to choose from for the user to generate
their piece of jewellery. The software should also be able to make a clean and solid
3D model of the scanned clay object and translate this model to a piece of jewellery.
For the prototyped models separate programs were
o Offer design options - The relation with the customer is mostly through the
application platform and the instruction videos. On the platform we offer the
customer options to ‘design’ their jewellery.

5. Revenue Streams
What are the customers willing to pay and for what value? How would they prefer to pay?
How are they currently paying? How does each stream add up to the total revenue?

This building block elaborates the earnings a business gets by subtracting the costs from
the revenue generated from each customer segment. Where customers are generally
considered the heart of the business, revenues are automatically likened to the arteries.

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 We have evaluated the worth of the value we provide to each customer segment. An
accurate evaluation of this worth will result in multiple revenue streams being gained from
a single customer segment.

It is not just enough for us to cite ‘keeping customers happy’ as we mandate. Most
businesses focus just on their customer policy, resulting in incomplete canvases where
revenue streams are entirely ignored. It is important to differentiate that this building block
represents the cash, not the profits that we has flowed in, at present.

Revenue streams need to be as clearly defined as possible. Hence, it is not just enough to
list the sources for our various revenue streams but equally important to specify our pricing
and projected lifecycles too. The reason for listing these details is to evaluate whether it is
profitable for our business even to opt for a revenue stream or not. If the cost of designing
and producing a product is more than what the customer is willing to pay for it or greater
than the revenues the product will rake in before its lifecycle ends, then it does not make
business sense to go ahead with the product.

There are multiple ways how Kharls Jewels generates cash. The first and clearest stream is
the selling of the physical product, which is the toolbox. When people buy the package they
get one print in a specified material for free. Calculation of the costs can show what
material this can be. If people want the order more prints, or the same print in a different
material they have to pay separately, this is the second revenue stream.

The pieces of jewellery cannot be ordered directly at my3Dshoppe but have to be ordered
via us. There is also a possible third revenue stream. The pieces of jewellery made by the
children can be sold in the my3Dshoppe and toysrus store with their permission. A part of
the revenue of this jewellery can be claimed by Kharls Jewels.

6. Key Activities
What key activities do your value propositions require? Your distribution channels?
Customer relationships? Revenue streams?

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 As the title suggests, these are the most important tasks a company must carry out in order
to fulfill its business purpose. To be successful, a company must carry out key actions that
are primarily dictated by its business model. As we studied with the key resources building
block, key activities are similarly pivotal in an organization fulfilling its value proposition,
reaching its customer segments, sustain its customer relationships and ultimately create
long-term revenue streams.

Key activities are different according to the business model of the organization carrying out
the activity. Hence, an organization that relies heavily on its 3rd party contracts will list
channel management as a key activity. A product-driven business will lend more
significance to activities such as continuous research to understand the users’ better as
well as constant innovation in technology.

o Designing products
o Distribute toolbox
o Maintain and manage the app platform
o Development - A team of application developers is needed to develop and maintain
the platform. There are also people needed to check for mistakes in the 3D models
of the jewellery. And of course the other people at the office like the managers and
helpdesk are needed to offer a great service to the customers.

7. Key Resources
What key resources do your value propositions require? Your distribution channels?
Customer relationships? Revenue streams?

Key Resources describes the most important assets required to make a business model
work. These are the resources that allow an enterprise to create and offer a Value
Proposition, reach markets, maintain relationships with Customer Segments, and earn
revenues. Our resources will have to comprehensively account for any accepted

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 hypotheses thus far. There are many resources that will be obvious and may not need much
debate.

The owned physical key resources are minimized by outsourcing all the production to key
partners. There are no stores owned by the company. A warehouse will be needed for the
produced toolboxes and an office for research and development, platform maintenance
and control and the helpdesk.

8. Key Partners
Who are your key partners? Your key suppliers? Which key resources are you acquiring
from them? Which key activities do your partners perform?

Key partners are the external companies or suppliers that you would need to perform your
key activities and deliver value to the customers. Buyer-seller relationships are necessary
to optimise operations and reduce the risks associated with a business. You can form
business alliances with your partners through joint ventures and strategic alliances as well.
Just like the key resources, these key partners should be mapped to the key activities too.
The main key partner will be my3Dshoppe or a similar company. They will produce the
jewellery and send it to the customer. They can also be a channel to sell the toolbox and
the toolbox can be a channel to create a larger client base for my3Dshoppe. The
partnership can be enhanced by advertising in both directions. my3Dshoppe can also be
really valuable for the knowledge they have about maintaining a platform and 3D
modelling.

Other key partners are the production facilities for the toolbox and attachments. They have
to be reliable and child friendly produced. Possibly an assembly location is needed because
not all the components are produced in the same factory.

A last key partner could be an application and web developer. If the first basis of the
platform cannot be done in house it can be outsourced to a specialized company.
Otherwise consultancy from such a company can be very useful.

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9. Cost Structure
What are the most important cost drivers in your business model? Which key resources
and activities are most expensive?

Cost Structure defines all the costs and expenses that our company will incur while
operating our business model. This final step in the process is important, because it will
help our team decide whether to pivot or proceed.

There are two main categories of cost structure and that is value-driven and cost-driven.
The focus of value-driven cost structures is to create more value in the product itself, not
necessarily producing the product at the lowest possible cost.

In order to populate the cost structure block of our business model canvas, our team must
consider the most important costs to our business and create hypotheses for these
expenses. We will need to take into account both fixed costs, such as start-up and
acquisition costs, and variable costs, such as our monthly operating costs. After we gather
data using resources available, in order to prove our hypotheses, we will be able to
determine if we should pivot or proceed. To proceed, the costs will have to be less than
our revenue, which we determined in the Revenue Streams block of the canvas. If this is
not the case, we will have to pivot and make adjustments.

The cost structure of Kharls Jewels is value-driven. The focus lays on the value creation and
not on minimizing the costs. The fixed costs are the costs of all the assets like an office and
the cost of salaries. The production costs of the toolbox are variable and depend on the
volume. The production of the jewellery will probable also be variable, but a deal has to be
made with my3Dshoppe about that.

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CONCLUSION

It is important to look at what kind of assignment to give to the children. This has great
influence on the recognisability of the object. It could also be a good idea to give the children
tools to make it easier to clay something. It is important to use one colour of clay, because this
is also the amount of colours that will be used in the final piece of jewellery. A child can find in
fun to clay something and likes it to receive the necklace with the 3D printed object on there.
Of course this was not a quantitative user test so much conclusions cannot be drawn about
that.

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