Advanced Business Model

Canvas
( BMC )
Understanding & using the canvas
 Business Model Canvas: BMC

Menu
 Efficiency & Value
 9 building Blocks
 Using the Canvas
 Business Model Canvas: BMC

K K V C C
P A P R S

K C
R H

C R
£ £

3
 Business Model Canvas: BMC
Value creating blocks

 CS – Customer Segments

 VP – Value proposition

 CH – Channels

 CR – Customer Relationships
 Business Model Canvas: BMC
Efficiency blocks

 R$ – Revenue Streams

 KR – Key Resources

 KA – Key Activities

 CR – Key Partnerships

 C£ - Cost Structure
 Business Model Canvas: BMC
9 Building Blocks

KP KA CR

VP
CS
CH

KR

C$ RS
 Business model canvas: BMC
9 Building Blocks

Customer Segments CR

 For whom are you

creating
value?
 Do you have more VP
than one customer CS
segment? CH
 Who are your most
important customers?
 What do they want RS
you to do?
 Business model canvas: BMC
9 Building Blocks

Channels to Market CR

 How do your
customers want to
be reached?
 How are you reaching VP
them now? CS
CH
 Which is the most
cost efficient way?
 What are the
interaction RS
points?
 Business Model Canvas: BMC
9 Building Blocks
Customer Relationships

 What relationship are

you establishing with CR
each CS?
 What kind of
relationship do they
expect?
VP
 What is the cost of CS
that relationship? CH
 How are they
integrated with the
rest of your business
model? RS
 Business Model Canvas: BMC
9 Building Blocks

Value Proposition CR
 Which one of our
customers problems
are you solving?
 What is your offer?
 How will they benefit? VP
CS
 Is this the same for CH
each CS?

RS
 Business Model Canvas: BMC
9 Building Blocks
Revenue Streams

 What are your CR

customers willing
to pay for ?
 What do they
currently?
 What form of VP
payment are they CS
intending to use?
CH
 Are you using
transactional
or recurring revenue?
RS
 How many RS do you
have ?
 Business Model Canvas: BMC
9 Building Blocks

KP KA Key Resources

 What resources does

your VP require?
 What assets are
essential to
your business model?

KR

C$
 Business Model Canvas: BMC
9 Building Blocks

KP KA Key Activities

 What activities do you

need to perform well in
your business model?
 What Key Activities are
critical?
 What Key Activities
does your VP require?
KR

C$
 Business Model Canvas: BMC
9 Building Blocks
Key Partnerships
 Who are your Key
KP KA Partners?
 Who are your key
Suppliers?
 What Key Activities do
they perform?
 How can your partners
and suppliers leverage
your model in the
KR market?
 Who do you need to rely
C$ on?
 Business Model Canvas: BMC
9 Building Blocks

KP KA Cost Structure

 What costs are

inherent in your
business?
 What is your cost
structure?
 What key elements
KR drive your costs?

C$
 Business Model Canvas: BMC
9 Building Blocks

The Workshop
Map your business model using the
Business Model Canvas

You will need

1
7
 Business Model Canvas: BMC
9 Building Blocks

KP KA VP CR CS

KR CH

C£ R£

1
8
 Business Model Canvas: BMC
9 Building Blocks

K K V CR CS
P A P
Ideas

K C
R H Ideas

C R
£ £

1
9
 Business Model canvas: BMC
9 Building Blocks

2
0
an Example
Business Model Canvas: BMC

SMH (Swiss Corporation for

Microelectronics
and Watchmaking Industries Ltd.)
 1982 - The

Business Model Canvas: BMC

Situation

 Quartz technology
 Swiss watch market share falls to
15%
 Banks shutting down money
supply
 Manufacturers think – We can’t
produce that quality at a that
price
 Fear of cannibalising profits
 Asuag & SSIH Bankrupt
 James Bond looses his Omega
 A New Value

Business Model Canvas: BMC

Proposition

Watches are
jewellery
 The Strategy

Business Model Canvas: BMC

 Upmarket watches positioned as
heritage pieces
 Create a new watch for low end
market
 Manufacturing cost to be less
than 15% of retail price
 Reduce components parts from
91 to 50
 Insisted on owning 51% of
the new company
 The Marketing

Business model canvas: BMC

 Fashionable, low cost & lifestyle
 Pricing $40 - $50
 30% of retail price to go into
marketing
 Limited edition runs
 Commissioned Artists
&industrial designers to create
“ The Look”
 Stand alone Swatch stores
 SMH

K K V C C
P A PRODUCTION &
P R S
QUALITY CONTROL

R&D HIGH END &

BLANCPAIN, OMEGA,
LUXURY SEGMENT
LONGINES, RADO
HR, FINANCE ETC

K CH
TISSOT, CERTINA, HAMILTON,
MIDO MID
R SEGMENT

SWATCH, FLIK FLAK MASS MARKET

MANUFACTURING
PLANTS

BRAND PORTFOLIO

C R
£ £

1
0
 SWATCH

KP KA VP CR CS

PRODUCT DESIGN

LIFESTYLE
MARKETING & MOVEMENT
COMMUNICATION
MASS MARKET
TRENDY LOW-COST
LIFESTYLE (SECOND)
SMH WATCHES
AS PRODUCTION
PARTNERS
KR CH
MSWATCH SHOPS

RETAIL
SWATCH DESIGN

LIFESTYLE EVENTS

SWATCH BRAND
GUERRILLA
MARKETING

C£ 1
R£
MANUFACTURING
1
PAYMENTS TO
WATCH SALES
SMH

MARKETING
 SWATCH

KP KA VP CR CS

KR CH
Fashion
item

C£ R£

1
2
 The Lessons

Business Model Canvas: BMC

 Identified the Value
Proposition

 Defined clear Customer

Segment

 Clearly structured Channels

to Market

 Manufactures as Key
Partners

 Product design as a Key

Activity
 The Conclusion

Business Model Canvas: BMC

With a new business model
a failing industry can now
delivers sustained revenue
 Assignment 2 :
Make Your Business Plan
+
BMC

send to Teams