BMC - a tool to

create your
Business Model

Mansor Harun
(Hypotheses)
(Historical &
Invalidated Plan)
 Product Centric VS Customer Centric

Customer
Customer
Depth of
Customer
Interface
Company
Company
Technology Push VS Market Pull

See Steve Blank, Four Steps to the Epiphany

What is Business Model?
“All it really meant was how you
planned to make money”

Michael Lewis
 Peter Drucker (1994) defined the term —
“assumptions about what a company gets
paid for” — which is part of Drucker’s
“theory of the business.”
What a company is paid for?
these assumptions are about
• markets;
• identifying customers and competitors,
their values and behavior;
• technology and its dynamics; and
• company’s strengths and weaknesses.”
Michael Porter’s definition of strategy.
Business model
frameworks
comparison
a business model is really a
set of assumptions or
hypotheses
9 business assessment components
Customer
perspective

Company
perspective

Activities Customer
segments
Partners Value
proposition

Customer
Resources Profit relationship Channels
Revenue

Cost
“The focus should be on
what jobs customers
are trying to get done.”

- Tony Ulwick, Founder Strategyn

put yourself in the
customers’ shoes
Value Proposition Canvas

Search for value

propositions that
customer want.
Customer Profile
customer jobs

What customers are

trying to get done in
their work and in their
lives
customer pain

Describe bad
outcomes, risks, and
obstacles related to
customer jobs
customer gains

Describe the more or

less expected benefits
the customers are
seeking
Value Map
 products and services

A list of all the products

and services a value
proposition is built
around.
 pain relievers

describe how your products

and services a value
proposition is built around.
 gain creators

describe how your

products and services
create customer gains
Three kinds of fit
• Problem solution fit
• Product-market fit
• Business model fit
Business Model Canvas
to describe, challenge,
design, and invent business
models more systematically
1
 Customer
Segment
“For whom are we creating value?”

Source: Adapted from Alex Osterwalder

32
2 1
 Value
Proposition
“What value do we deliver to the
customer?”

Source: Adapted from Alex Osterwalder

34
2 1

3
 Channels
“How do we deliver the value we
create to the customer?”

Source: Adapted from Alex Osterwalder

36
2 1
4

3
 Customer
Relationships
“How do we create & maintain
relationships with our customers?”

Source: Adapted from Alex Osterwalder

38
2 1
4

3
5
 Revenue
Streams
“How much will these customers
pay for the value we create?”

Source: Adapted from Alex Osterwalder

40
 2 1
4

6 3
5
 Key
Resources
“Who and what will we need to
create this value?”

Source: Adapted from Alex Osterwalder

© 2012 BigVisible Solutions 42

 2 1
7 4

6 3
5
 Key
Activities
“What will we do with these
resources to build value?”

Source: Adapted from Alex Osterwalder

44
 2 1
7 4

8
6 3
5
 Key
Partners
“Who would we partner with that
will provide us with Key Resources
or Key Activities?”
Source: Adapted from Alex Osterwalder

46
 2 1
7 4

8
6 3
9 5
 Cost
Structure
“How much will this cost to create
and maintain?”

Source: Adapted from Alex Osterwalder

48
Business Model Ideas

Multiple-epicentre driven Resource-driven Finance-driven

Offer-driven Customer-driven
Business Model Environment
Business plan + BMC
• Executive summary • External environment
• The team • The economy
• Management profile • Market analysis and key trends
• Why we are a winning team • Competitor analysis
• Competitive advantage of our business
• The business model model
• Vision, mission and values • Implementation roadmap
• How our business models works • Projects
• Value proposition • Milestones
• Target market • Roadmap
• Marketing plan
• Key resources and activities • Risk analysis
• Limiting factors and obstacles
• Financial analysis • Critical success factors
• Breakeven analysis • Specific risks and countermeasures
• Sales scenarios and projections
• Capital spending • Conclusion
• Operating costs • Annexes
• Funding requirements