Understanding Business Model Canvas (BMC)

Introduction

• Business Model Canvas (BMC): A strategic management tool and framework used to develop new or document existing business models.
• Origin: Developed by Alexander Osterwalder.
• Purpose: Helps describe, design, challenge, invent, and pivot business models.

Importance of BMC

• Strategic Planning: Provides a comprehensive view of the business strategy.
• Relationship Mapping: Illustrates the interaction between different parts of the business, from production to consumer delivery.
• Nine Elements: Offers a structured approach to formulating a business strategy.

Nine Elements of the BMC

1. Key Partners:

   • External organizations or individuals that work with a business to achieve objectives.
   • Example: Gojek partners include drivers, suppliers of jackets and helmets, and server infrastructure providers.

2. Key Activities:

   • Critical tasks necessary to produce the business's value proposition.
   • Example: Gojek connects drivers with passengers and manages user data.

3. Key Resources:

   • Essential assets required to facilitate key activities.
   • Example: Gojek's resources include the application itself, GPS integration, and server hosting.

4. Value Proposition:

   • The unique value and benefits offered to customers.
   • Example: Gojek offers quality mass transportation, ease of use, quick access, and affordable pricing.

5. Customer Relationships:

   • Methods used to maintain and enhance relationships with customers.
   • Example: Gojek utilizes discounts, newsletters, and application features like wallet and food ordering services.

6. Channels:

   • Ways through which the business reaches and delivers the value proposition to customers.
   • Example: Gojek uses its app, advertising, and user testimonials.

7. Customer Segments:

   • Different groups of people or organizations an enterprise aims to reach and serve.
   • Example: Gojek targets students, office workers, public transportation users, and internet-savvy millennials.

8. Cost Structure:

   • Major costs and expenses required to operate the business model.
   • Example: Gojek's costs include sharing revenue with drivers, server rentals, Google Maps API costs, and employee salaries.

9. Revenue Streams:

   • Ways in which the business generates income.
   • Example: Gojek earns from service fees, merchant fees on GoFood, and admin fees on GoPay services.

Practical Application

• Example Used: Gojek, a company primarily focused on providing services through an application rather than being a traditional transportation company.

Tools and Resources

• Online BMC Tools: Platforms like Canvanizer.com offer digital templates to create and edit BMCs.
• Access and Collaboration: Allows sharing and collaborative editing via email links and verification.

Conclusion

• Utility: BMC is a valuable tool for structuring and strategizing business plans effectively.
• Engagement: Encouraged to ask questions and discuss further in comments and interactions.

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