Which of the following would not be listed as a key activity on a business model canvas?
Show The Business Model Canvas is a great way of mapping out an idea, allowing it to be understood, tested and improved. The tool is a single page with nine connected boxes, which show how all parts of your business work together for success. We’ll look at some entrepreneurs as they fill in their own canvases – it’s much easier if you get to watch somebody else. They are: Business Model Canvas, strategyzer.com Step 1: Naming the purpose of the business The great thing about this is that we now have a criteria for assessing our ideas, and have some inspiration for creative ways to reach this purpose. Josh – “To reduce the amount of plastic that goes to landfill” Step 2: Customers and Value
Propositions This is a real person, someone who is walking around right now. Our job is to get a good understanding of this person: Firstly, we group our customers into clusters, describing each of them by their common characteristics, i.e. small business owners, students, parents, etc. Secondly we write helpful descriptors of each customer segment. Keep in mind that our customers are the people who make decisions and pay for our products/services (not to be confused with the End User or the Beneficiary). In the Value Propositions box, we describe what the customer is really looking for. We want to understand how our products/services make their lives better, to the point that customers will happily pay us for this Value Proposition. Josh – We have two customers: 2. Mothers with young children, who want to create a mindset of environmental responsibility in their daily decisions. Kylie and Dan – We have two customers: 2. Couples and families who want to learn more about Indigenous culture. Anna – We have three customers: 2. Cafes and burger shops. 3. Home cooks, people who like chilli sauce. Step 3: Channels and Customer Relationships The Channels box is our chance to explain how we first
encounter our customers, as well as how we deliver our Value Proposition. The Customer Relationships box outlines how our interactions will unfold. These two boxes tend to pair neatly together. Josh – Our acquisition channels are Instagram and word of mouth, whereas our main delivery channel is through mail orders. Kylie and Dan – Personal referrals are our best acquisition channel, but we’re keen to
find new ways of reaching decision makers within primary schools, who usually make decisions six months in advance. Anna – Supermarkets and cafes need an in-person pitch meeting, to hear the story and see the product for themselves. Step 4: Key Resources, Key Activities
and Key Partners Key Resources are the people, places, machines, patents and intangible assets that are
used every week. Key Activities are the processes and tasks that must be completed in order for our customers to be served. Key Partners are the people and organisations that take some of the responsibility off your shoulders. There’s some flexibility in these three boxes, it’s worth thinking about how you could outsource the tasks that aren’t your core skills to a partner, or how you could take things in-house to either save money or improve quality. Josh – Most resources and activities have been
better performed by partners, who grow the bamboo and manufacture the brushes. Kylie and Dan – The most essential resources are Kylie and Dan, as their knowledge and credibility are what make the entire operation possible. Anna – Chilli farming and sauce manufacturing are performed by partners. Step 5: Cost Structure and Revenue Streams Cost Structures are the 7-8 biggest expenses – how much we spend, how frequently we spend it, and whether it changes as sales go up and down. Revenue Streams are the prices each type of customer typically pays, as well as how frequently they come back. Whilst
these boxes aren’t a replacement for a proper financial model, they at least give us the ability to make basic forecasts, such as contribution margins and breakeven points. Josh – The main costs within the business are the purchase of brushes (recurring costs that will decrease as the orders get larger), the cost of acquiring customers (ads and content creation) and the costs of fulfilling orders (packaging, postage and staff time). Revenue comes through one main product; 4-packs of brushes. Kylie and Dan – Kylie and Dan themselves are the main costs, with administration, travel and cost of sales (ticketing, materials, etc) the next largest. Revenues are varied; schools pay a per-student rate of $15 that will increase in the future. Anna – There are a long list of costs, from the bottles to the sauce to the shipping and labelling, as well as the administration and sales staff wages. Revenues
all stem from the same product – 450ml bottles of sauce, but in different quantities and prices points. Step 6: Linking The Boxes +Tidying Up If we make claims about our happy customers, that should shine through in our Revenue Streams. This does two things: highlights the potentially overlooked activities and resources that are crucial for success, and makes us reconsider the expenses that don’t directly contribute to the Value
Proposition. We want the canvas to be as clear as possible, both for our benefit and for explaining the idea to other people. Step 7: Telling The Story Step 8: Assumptions Testing I find this is made easier with a simple Test Card, which asks you to name the big assumptions, pick a way of measuring the truth, and setting pass/fail criteria. Research should be conducted with
real people, and they need to be people who are in your customer segments. Step 9: Designing New Versions · New Customer Segments Josh wants to test some new products with his current customers, whilst also looking at business class airlines and high end hotels, as they both want to provide toothbrushes to their customers whilst appearing environmentally responsible. Kylie and Dan are going to test new styles of workshop that appeal to their school groups at different times of the year. Anna has heard that her supermarket customers want to see a wider range of products, so she’s going to test feasibility with her manufacturing partners and desirability with her customers. What’s Next? Customer Journey Mapping will give you insights into how you can better attract/serve/retain your customers. Financial Models will reveal what makes the business financially viable, and highlight the sensitivities that will make or break the idea. Value Proposition Canvases will dive deeper into your customers and their hidden motivations, creating more persuasive messages that will lure them in. What are key activities in a business model canvas?More about Key Activities
These are the most important actions your company must perform to operate successfully. Like Key Resources, they are required to create and offer a Value Proposition, reach markets, maintain Customer Relationships, and earn revenues.
What is not included in the business model canvas?There are no goals, strategies, or tactics.
In the business model generation process, you are asked to identify activities which your company must do well to succeed.
What are the 3 key components of a business model?The approach starts with a deep dive into the 3 pillars of the business model: - The value proposition (who are our customers and what are we offering them?) - The value architecture (how are we organized in order to deliver this value proposition to our customers in due time) - The profit equation (how the alignment ...
What are the 3 types of key activities?Key Activities. Research and Development.. Production.. Marketing.. Sales and Customer Service.. |