Business Model Canvas

KURSUS ASAS KEUSAHAWANAN SISWA

13TH APRIL 2018 PRESENTED BY:
FELDA TRAINING CENTRE, MELAKA
NUR KHAMSIAH AHMAD

Deputy Director
Entrepreneurship Development Centre

Accelerating IIUM Entrepreneurship 4.0

 Definition

Business Model Canvas is a strategic

management and lean startup template for
developing new or documenting existing
business models. It is a visual chart with
elements describing a firm's or product's
value proposition, infrastructure, customers,
and finances.
Business Model Canvas (BMC)
 Value Proposition

Product / Uniqueness -What problem solved -Convenience

Service Values -Which needs are fulfilled -Usability.
Description

Value proposition is the #1 thing that determines whether people will bother reading
more about your product or hit the back button. It’s also the main thing you need to test –
if you get it right, it will be a huge boost.
 Customer Segment
Customer Avatar
Personality of the prospects which later turns to customer. They are your TARGET AUDIENCE which you
imagined before.

Demography Socioeconomic
1. Age 1. Education
2. Gender 2. Career
3. Status 3. Income

Psychography Geography
1. Values 1. Location
2. Belief 2. Area.
3. Culture
 Customer Channel
The medium through which an organization provides its value proposition to its
customer segment is known as a channel.

Business Premise

Agents/ Drop shippers

Factory

Distributors

Social Media
 Customer Relationship

Promotion and Loyalty Card/

Advertisement Dedicated Staff
Marketing After Sale Service Membership
 Key Resources

Human – Workers/ Trainers/ Distributors/ Suppliers

Financial – Capital to cover Cost of Goods (COG) and Operating

Expenditure (OPEX)

Physical – Premise/ Transportation/ Facilities/ Equipments

Intellectual – Experts/ Dietitian/ Pharmacist/ Engineers/ Hacker/

Driver
 Key Activities
Activities that are key to producing the company’s value proposition. An entrepreneur must start by
listing the key activities relevant to his/her business. These activities are the most important processes
that need to occur for the business model to be effective. Key activities will coincide with revenue
streams. Now it is important to evaluate which activities are key by adding or removing some and
evaluating
their impact.

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Premise rental Purchase required Promotion and Designing and Product/ Service
Employ Staff
and set up materials Marketing preparation of Delivery
products/
service
 Key Partnership
To create efficient, streamlined operations and reduce risks associated with any business model, an
organization forms partnerships with its high-quality suppliers. Key partnerships are the network of suppliers
and partners who complement each other in helping the company create its value proposition. Partnerships
can be
categorized as follows; Strategic alliance between competitors (also known as competition), Joint ventures
and Relationships between buyers and suppliers.
Bank

Supplier Trainer

Chef Consultant
 Cost Structure
This defines the cost of running a business according to a particular model. Businesses can
either be cost driven i.e. focused on minimizing investment into the business or value driven i.e.
focused on providing maximum value to the customer.

Cost of Goods (COG) Operating expenditure (OPEX)

Cost of goods sold (COGS) is an accumulation
of the direct costs that went into
the goods sold by your company. This
includes the cost of any materials used
in production as well as the cost of labor needed
to produce the good. It does not include indirect
expenses such as
distribution costs and marketing costs.
An operating expense, operating expenditure,
operational expense, operational expenditure
or OPEX is an ongoing cost for running a product,
business, or system. In business, an operating
expense is a day-to-day expense such as sales
and administration, or research & development, as
opposed to production, costs, and pricing. In short,
this is the money the business spends in order to
turn inventory into throughput.
 Revenue Stream
A revenue stream is the methodology a company follows to get its customer segments to buy
its product or service. A revenue stream can be created through the following ways;

Asset Sale: the company sells the right of ownership over the good to the
customer.

Usage Fee: the company charges the customer for the use of its product or 

service.

Subscription Fee: the company charges the customer for the regular and
consistent use of its product or service.

Lending / Renting / Leasing: Granting someone the exclusive right to a particular asset for a
fixed period in return for a fee.

Licensing : Owner retain copywrite while selling license to third parties.