AND RESEARCH SDN. BHD. (CEDAR) WHAT IS BUSINESS MODEL? The business are basically capable to:- 1- Generate income and profits 2- Business Sustainability 3- With limited resources
AND RESEARCH SDN. BHD. (CEDAR) Customer Segments • Who are the customers? • For whom are we creating value? • Who are our most important customers? Mass Market Niche Market Segmented Market Diversified Market Multi-sided Markets Primary Secondary “GAIN” “PAIN” “JOB FUNCTIONS” 8
is the market segment? B2B/B2C/Both? What is the market size and opportunity? Who are your primary and secondary target customer? (According to Value Proposition) Do you have the demography of your customer? The Psychographic of the segment? Customer Segments
AND RESEARCH SDN. BHD. (CEDAR) Value Propositions • What value do we deliver to the customer? • Which one of our customer’s problems are we helping to solve? • Which customers needs are we satisfying? • What bundles of products and services are we offering to each Customer Segment? Newness Performance Customization Price Design Brand/Status Cost Reduction Risk Reduction Accessibility Convenience Usability Getting the job done “GAIN CREATORS” “PAIN RELIEVER” “PRODUCTS & SERVICES” 10
of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? Why customer choose you instead of your competitor. CHARACTERISTICS : Design Features Warranty Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability Value Propositions
AND RESEARCH SDN. BHD. (CEDAR) Channels • Through which Channels do our Customer Segments want to be reached? • How are we reaching them now? • How are our channels integrated? • Which ones work best? • Which ones are most cost-efficient? • How are we integrating them with customer routines? 12
reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? CHANNEL PHASES: Awareness How do we raise awareness about our company’s products? Evaluation How do we help customers evaluate our Value Proposition? Purchase How do we allow customers to purchase specific products? Delivery How do we deliver a Value Proposition to customers? After sales How do we provide post-purchase customer support? Channels
AND RESEARCH SDN. BHD. (CEDAR) Channels (cont’d) Channel Types Channel Phases Direct Sales force 1. Awareness 2. Evaluation 3. Purchase 4. Delivery 5. After sales Web sales How do we raise awareness about our company’s products & services? How do we help customers evaluate our organization’s value proposition How do we allow customers to purchase specific products & services How do we deliver a Value proposition to customers? How do we provide post- purchase customer support? Indirect Own stores Partner stores Wholesaler 14
AND RESEARCH SDN. BHD. (CEDAR) Customer Relationships • What type of relationship does each of our Customer Segments expect us to establish and maintain with them? • Which ones have we established? • How costly are they? • How are they integrated with the rest of our business model? Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation 15
expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? Customer Relationships
the Value proposition be delivered to customers? Why there is a need to pay attention in customer service level? (Customers not a robot). Different strategy across segment? How do you manage/addressed customer’s issues? What makes customer repeat in buying? What makes a loyal customer? What makes customer like and trust you? What makes customer emotionally attracted to your offering?
AND RESEARCH SDN. BHD. (CEDAR) Revenue Streams • For what value are our customers really willing to pay? • For what do they currently pay? • How are they currently paying? • How would they prefer to pay? • How much does each Revenue Stream contribute to overall revenues? Asset sale Usage fees Subscription fees Lending/Renting/Leasing Licensing Brokerage fees Advertising 18
For what do they currently pay How are they currently paying How would they prefer to pay How much does each Revenue Stream contribute to overall revenues TYPES: Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising Revenue Streams
AND RESEARCH SDN. BHD. (CEDAR) Key Resources • What Key Resources do our Value Propositions require? • Our Distribution Channels? • Customer Relationships? • Revenue Streams? Physical Intellectual Human Financial 20
AND RESEARCH SDN. BHD. (CEDAR) Key Activities • What Key Activities do our Value Propositions require? • Our Distribution Channels? • Customer Relationships? • Revenue Streams? Production Problem Solving Platform Network 22
AND RESEARCH SDN. BHD. (CEDAR) Key Partnerships • Who are our Key Partners? • Who are our key suppliers? • Which Key Resources are we acquiring from partners? • Which Key Activities do partners perform? • Optimization and economy of scale • Reduction of risks and uncertainty • Acquisition of particular resources and activities 24
AND RESEARCH SDN. BHD. (CEDAR) Cost Structure • What are the most important costs inherent in our business model? • Which Key Resources are most expensive? • Which Key Activities are most expensive? Cost-driven Value-driven Fixed costs Variable costs Economies of scale Economies of Scope 26
model? Which Key Resources are most expensive? Which Key Activities are most expensive? IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities). Variable costs (working capital). Capital Expenditure Economies of scale Economies of scope Cost Structure
make your marketing activities more effective and efficient? •Who would you be partnering with to strengthen your position in the marketplace? • NGOs • Associations • Vendors • Manufacturers • Media players • Celebrities • Dignitaries • Etc. Key Activities •What kind of marketing activities do you want to carry out to achieve your objectives? • Collaterals • Campaign • Talks • Ads • Promotion • Etc. Value Propositions •What “GAIN” can you create for your customers? •What “PAIN” can you help relieve your target clients from? •What kind of products/services you want to promote first and next? Customer Relationships •How can you build liking and trust? •Would you be using intermediaries to do so? Customer Segments •Who are you targeting? •Any idea how big is the market size? •Where are they located mostly? •What do they need/want? •What are their interest and persona •“GAIN” •“PAIN” •“JOB FUNCTIONS” DEMOGRAPHY PSYCHOGRAPHY Key Resources •What kind of resources do you need to carry out your marketing activities? • Money • Man • Machine • etc. Channels •How best can you reach out to them? •In what way can you communicate with them? • Deliverable of your offerings? Cost Structure •What sort of investment are you going to allocate? •Where will you get the money from? •Can you obtain in kind contribution to aid your activities? Revenue Streams – Expected Returns •What tangible or intangible returns would you expect from your marketing investments? • http://www.businessmodelgeneration.com
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