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Business Model Canvas


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How to design platforms which are the user’s dream come true?
In order to foster successful communication, you have to get to know your client, or rather explore his business model.
The key to your company’s success is knowing a lot about your clients. Knowing what needs the end-users of your services have and how to fulfil them determines your business triumph.

Published in: Internet
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Business Model Canvas

  1. 1. Business Model Canvas
  2. 2. Why BMC? In order to foster successful communication, you have to get to know your client, or rather explore his business model.
  3. 3. Business Model Canvas
  4. 4. Customer Segments In order to discover the company’s customer segments, find out: • What customer segments does the company have now? • Who are its customers and what are their characteristics (e.g. age, sex, education, social status, etc.)? • Who is the key customer? • What are the customers’ characteristic behaviors and habits? • What expectations and needs is the project to satisfy? • In what way does the project inform the customer segments about the offer that is addressed to them?
  5. 5. Value Propositions Write down products and services that are valuable for this perticular customer segment. Value is the reason why customers will choose one company over another. Some questions that you may ask to learn about customer values: • What is the greatest value for the customer? • What are the reasons why customers should choose the value of the company and not of the competition? • Which customer needs are being satisfied and what problems does it solve? • What is the company’s offer for individual segments? Values could include: newness and uniqueness, design, brand, customization, price, convenience, usability, accessibility.
  6. 6. Channels Channels are the ways in which the company communicates its offer to individual customer segments. You can match a specific value to a particular customer segment via an appropriate channel. Examples of questions: • Through which channels do particular customer segments want to be reached? • How is the company reaching them now? • How does the company want to reach them? • How are the channels integrated? • Which channels are most cost-efficient? Types of Channels may include: sales network, wholesalers, online retailers and own Internet sales.
  7. 7. Customer Relationships It is a crucial element in your project. It will allow you to see customer preferences and if and how they can be automated or improved, so that it is possible to maintain the same good relationship. Guiding questions: • What type of relationship does each Customer Segment expect the company to establish and maintain with them? • Which ones has the company established? • What types of relationships are the most costly? • How are the current relationships integrated with other business elements? Examples of Relationships: dedicated personal assistance, personal assistance, self-service, automated services, communities, co-creation.
  8. 8. Revenue Streams This area will show you how the company’s business model brings profit generated by Value Propositions. Some questions about Revenue Streams: • For what services or products do customers currently pay? • For what services or products do customers pay the most money or the most often? • How does the sales revenue through various Channels affect the company’s total revenue? Revenue Streams include profit from the sales of products or services, usage fees, periodic income, renting, leasing, brokerage fees, advertising, etc.
  9. 9. Key Resources Why is the knowledge of the company’s Resources so important? You can use this information e.g. to design innovative solutions based on the company’s knowledge and resources. Some questions that you can ask: • Which Resources does the company use to deliver value to its customers? • Which Resources does the company use in particular Channels, Relationships and at each stage of generating Revenue? The company’s Key Resources include physical resources, infrastructure, sales network, intellectual resources (knowledge or patents), human resources (team, relationships with partners, contacts), etc.
  10. 10. Key Activities Each company has an area called Key Activities. These are activities that the company undertakes to operate effectively. Questions that will help you: • What Key Activities do the company’s Value Propositions require? • What Key Activities does the company undertake for Channels, Customer Relationships and Revenue Streams? Examples of Key Activities: production, problem solving services, networking, etc.
  11. 11. Key Partners This area will help you identify which Key Activities partners help to perform, and what resources the company obtains from them. Some questions: • Who are the company’s Key Partners? • Who are its key suppliers? • Which Key Resources is the company acquiring from Partners? • Which Key Activities do Partners perform? Key Partners include external partners who collaborate with the company or provide it with services.
  12. 12. Cost Structure By analyzing the company’s Cost Structure, you will discover its fixed costs (salaries, rents, utilities), variable costs, economies of scale, economies of scope, etc. Useful questions: • What are the most important and the biggest costs of the company? • Which Key Resources are most expensive? • Which Key Activities are most expensive?
  13. 13. Where, how, when? • The Business Model Canvas should be used during creative sessions at the beginning of your work with the company. • The BMC is an ideal tool to discover the ins and outs of your client’s business, its objectives and business environment. • By getting to know the different areas, you enter the world of your client and his company. • The area of Customer Segments is an excellent start to broaden your knowledge about customers-users. • Based on particular segments, you can develop personas and empathy maps.
  14. 14. Value, Channel, User The biggest virtue of the BMC tool is its transparency. It is a simple way to see you client’s business model at the initial stages of the project. You will know what to talk about and how to do it. What the UX/UI department cares most about is the areas showing what values and through which channels the company delivers to its specific users. With BMC, you will already have a general overview. More in our article: model-canvas/
  15. 15. THANK YOU! Divante Sp. z o.o. (LTD), 14 Kosciuszki Street, 50-038 Wroclaw, Poland, tel. +48 71 342 24 06, e-mail: Krzysztof Jagiełka Junior UX Specialist