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Build a Startup

Business Model
Canvas
Almira Syawli, S.Kom., M.Kom
Manajemen Bisnis Fungsional
Sistem Informasi
Universitas Brawijaya
The Business Model Canvas
Your Roadmap To Success

Source:

Coach Davender Gupta


Startup-Académie
www.startupacademie.com
What is a Business Model?

How you
create,
deliver,
and harvest
value
What is a Business Model Canvas?

A visual representation of the various elements of your


Business Model.
Allows you to:
▪ see the relationships among the parts of your model;
▪ identify hypothesis, assumptions and risks;
▪ plan validation testing (market, channels, pricing);
▪ find ways to add value or reduce cost;
▪ brainstorm market disruption strategies
Business Model Map

1. Lean Canvas (Ash Maurya) 🡪 Tactical


Business resources Scorecard
It outlines a more problem focused approach and it majorly targets entrepreneurs
and startup businesses.

2. Busines Model Canvas (Alexander


Osterwalder) 🡪 Strategic Business
Resources Scorecard
It outlines several prescriptions which form the building blocks for the activities. It
enables both new and existing businesses to focus on operational as well as
strategic management and marketing plans
LEAN CANVAS
Source: http://en.wikipedia.org/wiki/Business_Model_Canvas
The Business Model Canvas
Value
Propositions Customer
Key Relationships
Activities

Customer
Key
Segments
Partners

Distribution
Channels
Key
Resources

Cost Revenue
Structure Streams
1. Customer Segments

Customer
Segments

1
1. Customer Segments

• Who are your most important users


and customers?
• You must create a detailed portrait of
each (“archetype”)
• Look beyond the obvious
• who are the stakeholders?
• who is most motivated?
• who is most underserved?
• who has the most to gain?
2. Value Proposition

2 Value
Proposition
2. Value Proposition
For each Customer Segment:

▪ What is their PAIN? (B2B)


or their ACHE? (B2C)

▪ What is the GAIN for them to solve their


pain or ache?

▪ What is their DECISION TRIGGER?


The Decision Trigger

How does your solution change


the customer’s life for the better?
« What is the RETURN ON USE »
Does your offer promise enough added
value to motivate
your customer to
pull out their credit card?
3. Distribution Channels

Distribution
Channels

3
3. Distribution Channels

How do you deliver this value at every


stage of the buying process?
• Discovery
• Evaluation
• Purchase
• Delivery
• After sales service

Physical or Virtual channel?


What is the value you add at each step?
4. Customer Relationships

Customer
Relationships
4
4. Customer Relationships

How do you
GET,
KEEP,
and GROW
your customer base?
How do you build a loyal and enthusiastic
tribe around your offer?
5. Revenue Streams

Revenue
Streams 5
5. Revenue Streams

How do you generate cash from each customer


segment?
● What VALUE do customers put on the benefits you provide?
● What VALUE are customers willing to pay for?
● What VALUE do customers infer from your pricing?

Revenue Streams = Strategies (What)


Pricing = Tactics (How Much and When)

Consider impact on your


GET-KEEP-GROW strategies
5. Revenue Streams

Price on VALUE – not on cost


▪ usage
▪ subscription
▪ rent
▪ license
▪ intermediation (affiliate)
▪ freemium (use with caution!)
Where can you generate revenue that
others leave on the table?
6. Key Resources

6
Key
Resources
6. Key Resources

What infrastructure and resources do you need to deliver


what you promise?
● tools, space, locations
● personnel (qualifications, in-house or sub)
● equipment (lease or buy)
● licenses, intellectual property
● supplies (components, assemblies)
● what is scarce or difficult to get
● financial requirements
● acquisition timelines

Beware of promising
more than you can deliver!
7. Key Activities

7 Key
Activities
7. Key Activities

What major activities (deliverables)


must be produced – when and by
who?
• dependencies
• responsibilities
8. Key Partners

Key
Partners

8
8. Key Partners

Partners
• Suppliers
• Developers
• Distributors
• Investors
• Collaborators
• Affiliates

Competitors
Alternatives

How does each partner help or hinder the


business model?
9. Cost Structure

9 Cost
Structure
9. Cost Structure

What are the critical elements of the cost


structure?
● Fixed costs
● Variable costs
● Resource, activity, partner costs
● Infrastructure, operational, cost of sales
● Payroll costs, benefits, bonus structure, taxes
● What are the costs of each element of the business
model?
● Where are the economies of scale?
● What are the risks, the unknowns?
The Business Model Canvas
Value
Propositions Customer
Key Relationships
Activities

Customer
Key
Segments
Partners

Distribution
Channels
Key
Resources

Cost Revenue
Structure Streams
Validating the Canvas

« The problem is that startups fall in love


with the solution too early.
They don't focus enough on the foundation
of vision and strategy to make sure it
connects to what people want and use. »
-- Ash Mauriya
Validating The Canvas

Everything you put on your canvas is a


HYPOTHESIS.
You must VALIDATE every element through -
• Discovery (your own data)
• Research (other people’s data)
• Testing (simulation, MVP)
to uncover the DISRUPT.
Discover the DISRUPT

How do you change the rules of the


competitive game?

The gold is in
the DISRUPT.
Validating the Canvas

• Discover
• What you know
• That you know (belief)

• That you don’t know (hypothesis)

• What you don’t know


• That you know (intuition)

• That you don’t know (discovery)


The Four Disrupts
Offer (What):
● New offers (products or services) that did not exist up to now (invention)

Process (How):
● New products or methods that allow the offer to be produced faster,
cheaper, more durable, better quality (production)

Market (Who):
● Opening a new market segment poorly served until now, by making minor
modifications to one’s product or service (marketing)

Value (Why):
● Meeting a need that is valued by an existing market, but not satisfactorily
met by competing offers, and doing it better than the competition
(positioning)
7 4
8 2 1
6 3
9 5

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