BMC

BUSINESS MODEL CANVAS

FPP
ROSNALINA ABDUL RAHMAN
BMC

 The Business Model Canvas (BMC) is a strategic

management tool to quickly and easily define and
communicate a business idea or concept.
 It is a one page document which works through the
fundamental elements of a business or product, structuring
an idea in a coherent way.
What is important

 The Business Model Canvas helps visualize what

is important and forces users to address key
areas.
 It
can also be used by a team (employees and/or
advisors) to understand relationships and reach
agreements."
Nine part of Business Model

• Customer Segments. An organization serves one or more customer segments. .

• Value Propositions
• Channels.
• Customer Relationships.
• Revenue Streams.
• Key Resources.
• Key Activities.
• Key Partnerships.
Nine part of Business Model
 Customer Segments. An organization serves one or more customer segments.
Key Question: For whom are we creating value? Who are our most important customers?
 Value Propositions. An organization seeks to solve customer problems and satisfy customer needs with value
propositions.
 Key Questions: What value do we deliver to the customer? Which one of our customer’s problems are we
helping to solve? Which customer needs are we satisfying? What bundles of products and services are we
offering to each Customer Segment?
 Channels. Value propositions are delivered to customers through communication, distribution and sales
channels.
 Key Questions: Through which Channels do our Customer Segments want to be reached? How are we reaching
them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient?
How are we integrating them with customer routines?
Nine part of Business Model

 Customer Relationships. Customer relationship are established and maintained with each Customer
Segment.
Key Questions: What type of relationship does each of our Customer Segments expect us to
establish and maintain with them? Which ones have we established? How are they integrated with
the rest of our business model?
 Revenue Streams. Revenue streams result from value propositions successfully offered to
customers.
Key Questions: 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? How does each stream
contribute to overall revenues?
Nine part of Business Model

 Key Resources. Key resources are the assets required to offer and deliver the five
previously described elements.
Key Questions: What Key Resources do our Value Propositions require? Our Channels?
Customer Relationship? Revenue Streams?
 Key Activities. Key activities are the actual jobs and operations needed to be performed
in order to produce key resources.
Key Questions: What Key Activities do our Value Propositions require? Our Channels?
Customer Relationships? Revenue Streams?
 Key Partnerships. Key partnerships involve activities that are outsourced and resources
that are acquired outside the enterprise.
Key Questions: Who are our Key Partners? Who are our key suppliers? Which Key
Resources are we acquiring from partners? Which Key Activities do partners perform?
Nine part of Business Model

 Cost Structure. The eight previously described business model elements result in a cost
structure.
Key Questions: What are the most important costs inherent in our business model?
Which Key Resources are most expensive? Which Key Activities are most expensive?
Exercises

 1.Watch this video

 https://www.youtube.com/watch?v=CakUeC1sCSs&vl=en or
 https://www.youtube.com/watch?v=QoAOzMTLP5s
 https://www.youtube.com/watch?v=IP0cUBWTgpY&t=160s
2. Create one business Canvas for KFC .