Welcome to LDP Internal

Sharing Session !

Topic of the Day:

Business Model Canvas (BMC)

By Chester & Bryan

 What is BMC ?

A strategic management tool to quickly

define a business idea or concept.

The BMC reflects systematically on your

business model, so we can focus on our
business model segment by segment.
Internal External
It is the most important element in the
BMC and the foundation to any
business. Remember, it’s not about what
we sell but why it matters. Element 1:

Value
Key Questions to Ask:
Proposition
 Which problem are you trying to solve for your customers?
 What kind of product or service are you offering to your
customers?
 What values do you provide to your customers?
 Now it’s time to identify who your
customer is.

Element 2:
Customer
Segment
Key Questions to Ask:

 Which classes are you creating value for?

 Who is your most important customer?
The next step is to build your
customer persona.
 Age
 Ethnic
Demographics  Location
 Household Income
 Occupation

 Focus on behaviours
Behaviours related to your value
proposition

 Focus on your customers’

Needs & Goals pain or frustration.
 Types of Market
Niche Market
Mass Market Focus is centered on a specific group
it focuses on the general population or of people with unique needs and
a large group of people with similar traits. For example, a product like
needs. For example, a product like a GoPro.
sport shoes.  

Multi-sided Market Segmented Market

This includes interdependent customer Based on slightly different needs,
segments. For example, a credit card there could be different groups
company caters to both their credit card within the main customer segment.
holders as well as merchants who accept
those cards.
 Total Addressable Market

Size of your business

Total Addressable Market (TAM) universe. Total market
demand for your product or
service.

Market size that your business Serviceable Available

is able to reach. Market (SAM)

Serviceable
Obtainable Market No. of potential buyers (for start-up)
(SOM)
 Market Validation

Meet your potential Create online survey to Talk to your existing

customers physically or gather data customer if you have any !
virtually  
 You’ve identified your customers
and it’s time to think of how to reach
out to them !

Element 3:
Channels
Key Questions to Ask:

 Through which channel that your customers want to be

reached?
 Which channel works best?
 How much does the channel cost?
 How can the channels be integrated into your customer’s
routine?
At this stage, you need to think of the type of
relationship you will have with each of your customer
segments or how you will interact with them
throughout their journey with your company. 

Element 4:
Customer
Relationships
Key Questions to Ask:

 What type of relationship you wish to build with your

customers?
 How can you integrate the relationship into your business?
 AARRR Funnel

A Acquisition How do your customers find you?

How quickly can you get your customers to

Activation
A the “ahaa” moment?

Retention How many customers are you retaining and

R why are you loosing others?

How do you turn your customers into your

Referral advocates?
R

Revenue How can you increase revenue?

R
Activation
Retention
 Referral

Email Marketing Referral Code Invite System Social Media Sharing

 Value Proposition Canvas

Value Proposition: Gain Creators

How is your business creating
Customer Gains
more conveniences to your
customers? - How is the current trend/business
making customers’ life more
convenient?

Value Proposition: Products &

Services

1) Physical/Tangible

- Goods/manufactured products.

2) Intangible

- After sales assistance/copyright

service.

3) Digital Customer Pains

Value Proposition: Pain Relievers
- music downloads/online How is the current trend/business
recommendations How is your business solving all the making customers to suffer?
pains you wish to tackle?
4) Financial

- Insurances/investment
consultation.
This is mainly about thinking how can you earn
money from your value proposition.

Element 5:
Revenue
Streams
Key Questions to Ask:

 How would your customers prefer to pay?

 For what value are your customers willing to pay?
Revenue Model
 Transaction fee: 25%
A strategy that Uber uses to attract drivers to meet demand during
high-traffic times is surge pricing
Cancellation Fee
Leasing to Driver
Revenue
Transaction fee: 25%
A surge pricing strategy
Cancellation Fee
Leasing to Driver
Funding
These key activities should focus on fulfilling your value
proposition, reaching customer segments and
maintaining customer relationships, and generating
revenue. 

Element 6:
Key Activities

Key Questions to Ask:

 What key activities does your value proposition require?

 Do your activities cater for your channels, customer
relationships and revenue streams?
 Types of Activities

Production Problem-solving Platform/Network

 Transaction fee: 25%
A strategy that Uber uses to attract drivers to meet demand during
high-traffic times is surge pricing
Cancellation Fee
Leasing to Driver
Platform (app) development
and enhancement
Marketing
Customer Support – Drivers,
Passenger
Analyze data
Think about who can help you with your business? Your
partners will help you to achieve your key activities and
deliver values to customers.

Element 7:
Key Partners

Key Questions to Ask:

 Who are your key partners or suppliers?

 What are the goals of these partnerships?
 Types of Partnerships

Strategic Alliance Competition Joint Ventures Buyer-Supplier

Partnership between Partnership between Partnership that Partnership that

non-competitor competitor develop new business. ensures reliable
supplies.
 Transaction fee: 25%
A strategy that Uber uses to attract drivers to meet demand during
high-traffic times is surge pricing
Cancellation Fee
Leasing to Driver
Drivers
Lobbyists
Investors
Lawmakers
Other Partners
-Technology
providers which
include maps,
insurance provider,
payments, and
analytics.
The main inputs you need to carry out your key
activities.

Element 8:
Key
Resources

Key Questions to Ask:

 What key resources does your value proposition require?

 Types of Key Resources

Human Intellectual

Employees Brand, patent, IP, copyrights

Financial Physical
Cash, credit Equipment, building,
inventory
 Transaction fee: 25%
A strategy that Uber uses to attract drivers to meet demand during
high-traffic times is surge pricing
Cancellation Fee
Leasing to Driver
Platform(App)
Network
Pricing & Routing
Algorithm
Brand Image
The segment is mainly about the operating cost needed to run your
business. You’ll need to focus on evaluating the cost of creating and
delivering your value propositions, creating revenue streams, and
maintaining customer relationships. And this will be easier to do so
once you have defined your key resources, activities, and partners.  
Types of Cost Structure:
-Cost-driven
-Value-driven
Element 9:
Cost
Structures
Key Questions to Ask:

 What is the cost to run your business?

 Which key activities/ resources require the highest cost?
 Transaction fee: 25%
A strategy that Uber uses to attract drivers to meet demand during
high-traffic times is surge pricing
Cancellation Fee
Leasing to Driver
 R&D
Customer Acquisition Cost Infrastructure maintenance
(CAC) Customer Support
Legal/Settlement cost
Insurance cost
Drivers Platform (app) development
Lobbyists and enhancement
Marketing
Investors Customer Support – Drivers,
Lawmakers Passenger
Other Partners Analyze data
-Technology
providers which
include maps,
insurance provider, Platform(App)
payments, and Network
analytics. Pricing & Routing
Algorithm
Brand Image

Revenue
R&D Transaction fee: 25%
Customer Acquisition Cost Infrastructure maintenance A surge pricing strategy
(CAC) Customer Support Cancellation Fee
Legal/Settlement cost Leasing to Driver
Insurance cost Funding
 External

- an extremely important segment as it determines if your business idea works.

Value proposition - it’s the answer why customers turn from one company to another, it may be the price or type of service
offered.
- The business has to satisfy a customer’s needs/pain.
 
- Your information here should be about how your company reaches your customers. (call centre, kiosk, etc.)
Channels  
- 2 usual types of customer segments: niche market which is very specific and specialised and mass market
Customer Segments which is wide and normally selling products where everyone can use.
 
- Something you provide to maintain healthy and lasting relationship with your customers.
Customer Relationship  

- Includes sponsorships and anything that contributes to the top level.

Revenue streams  
 Internal

- Something that may cause money.

Key Resources - If your business requires app to run, app developers and servers will be your resources.
- Your brand itself can be your resource as well.
 
- something a company does to make sure its BMC works.
Key activities - includes marketing strategies, campaigns, R&D and roadshows.
- can be investments which minimise operating cost and should be aligned with value proposition.
 
- Network of suppliers or partners that make the business work.
- to reduce risks as the company may not be expert in some aspect. (payment system like credit cards)
Key Partnerships - can be joint ventures like Starbucks selling its products in a hypermarket.
- can be strategic alliances like Pepsi helps Starbucks to make glass bottles.
- involves win-win partnerships.
 
- describes all the costs incurred in your business.
Cost structure - mentions only all the important costs.
- licensing fees, insurance, taxes, etc.
 
Q&A
Thank You !

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