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Business Model Canvas - BMC

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This presentation describes how to create a valid BMC for your idea.

This presentation describes how to create a valid BMC for your idea.

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  • 1. Eng. Mohamed Ameen Marketing Consultant Copyrights © Mohamed Ameen 2014
  • 2. Session Agenda: Copyrights © Mohamed Ameen 2014 2. What is the Business Model Canvas - BMC? 3. Why shall we use BMC? 4. How to create BMC for my business? 5. Practical workshop. 1. Why do we need planning?
  • 3. Why do we need Planning? Copyrights © Mohamed Ameen 2014
  • 4. Copyrights © Mohamed Ameen 2014 • A plan will help you determine whether your business idea is feasible. • It will help you convince investors your business is a reliable proposition. • A plan is like a map. When following a plan, you can always see how much you have progressed towards your goal. • It will allow you to come up with a comprehensive strategy on how you will deal with various scenarios.
  • 5. Copyrights © Mohamed Ameen 2014 30% of entrepreneurs fail in their startups due to lack of planning
  • 6. What is BMC? Copyrights © Mohamed Ameen 2014
  • 7. • The Business Model describes the rationale of how a business creates, delivers, and captures value. Copyrights © Mohamed Ameen 2014 • It covers the four main areas of a business: customers, offer, infrastructure, and financial viability.
  • 8. Why shall we use BMC? Copyrights © Mohamed Ameen 2014
  • 9. Copyrights © Mohamed Ameen 2014 • BMC forms a solid base for the Business Plan. • BMC filters our ideas before planning. • BMC provides a good overview about our idea.
  • 10. How to create BMC for my business? Copyrights © Mohamed Ameen 2014
  • 11. BMC is structured around 9 building blocks: Copyrights © Mohamed Ameen 2014 1. Customer Segments. 2. Value Proposition. 3. Channels. 4. Customer Relationship. 5. Revenue Streams. 6. Key Resources. 7. Key activities. 8. Key Partnerships. 9. Cost Structure.
  • 12. Copyrights © Mohamed Ameen 2014
  • 13. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Who do we target? - Mass markets. - Niche markets. - Diversified markets. - Multi-sided markets. The Customer Segments Building Block defines the different groups of people or organizations we aim to reach and serve.
  • 14. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks What do we offer? - Operational Excellence - Performance Superiority. - Customer Intimacy. The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment.
  • 15. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Channel Phases: - Marketing. - Purchase. - Delivery. - After sales. The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver the Value Proposition.
  • 16. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Customer Relationship Phases: - Customer acquisition. - Customer retention. - Boosting sales. The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.
  • 17. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Revenue streams: - Asset sale. - Usage. - Subscription. - Renting. - Licensing. - Brokerage. - Advertising. The Revenue Streams Building Block represents the cash a company generates from each Customer Segment.
  • 18. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Key Resources categories: - Physical. - Intellectual. - Human. - Financial. The Key Resources Building Block describes the most important assets required to make a business model work.
  • 19. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Key Activities categories: - Production process. - Problem solving. - System development. The Key Activities Building Block describes the most important things a company must do to make its business model work.
  • 20. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Types of Key Partnerships: - Joint Venture. - Strategic alliance. - Strategic partnership. - Buyer-Supplier relationship. The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work.
  • 21. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Elements of Cost Structure: - Fixed cost. - Variable cost. - Economies of scale. - Economies of scope. The Cost Structure describes all costs incurred to operate a business model.
  • 22. Copyrights © Mohamed Ameen 2014 BMC’s 9 building blocks Customer Segments: whom are we Creating Value for? And who are our most Important customers? Customer Relationships: How could we make our Customers loyal to us?? Channels: How will we reach our customers? Value Proposition: What value do we deliver to the customer? Which one of our customer’s problems do we solve? What bundles of products and services are we offering? Key activities: What Key Activities do our Value Propositions require? Key Resources: What Key Resources do we need? 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? Revenue Streams: How much does each Revenue Stream contribute to overall revenues? Cost Structure: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
  • 23. Copyrights © Mohamed Ameen 2014 Workshop time!
  • 24. Copyrights © Mohamed Ameen 2014 We are done! Thanks  Eng. Mohamed Ameen • E-mail: mohamed.a.ameen93@gmail.com

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