Business Model Canvas: Nurdini - Prihastiti@sbm-Itb - Ac.id

Business Model Canvas
nurdini.prihastiti@sbm-itb.ac.id
Business Model Canvas
• Business: is fundamentally
concerned with creating value and
capturing returns from that value
• Model: simply a representation of
reality
• Business model: a representation
of a firm’s underlying core logic and
strategic choices of creating and Model
capturing value within a value Business Business Model

network (Shafer et al., 2005) Canvas
Definition
Business model describes the rational

of how an organization creates,
delivers, and captures value
(Osterwalder & Pigneur, 2009)
The 9 Building Blocks in BMC
The 9 Building Blocks in BMC
Video
1. Customer Segment
• Defines the different groups of people or organizations

• An enterprise aims to reach and serve
Key Question
• For whom are we creating value?
• Who are our most important customers?
• Who will give money or benefit to our company?
Example of Customer Segment
Type Definition Example

Mass market Serving standardized mass Airasia.com (low cost
market/one size fits all aircraft)
Niche market Serving unique particular market Javajetasia.com (private
jet rental)
Segmented Serving some different segment Kereta-api.co.id
with different characteristics
Diversified Serving 2 or more unrelated PT Pos Indonesia: logistik,
mail and telco’s, even
retail store.
Multi-sided Serving 2 or more related segment Bank UOB: credit card user
market and merchant
BUSINESS MODEL CANVAS – GO-JEK?
• Women &
Men
• 15 – 50
years old
• Low –
middle class
• Small
Enterprises
2. Value Proposition
Describe the bundle of products and services that create

value for a specific customer segment. Values may be
quantitative/qualitative
Key Question
• What value do we deliver to the customer?
• Which one of our customer’s problems are we
helping to solve?
• Which customer needs are we satisfying?
• What bundles of products and services are we
offering to each customer segment?
Example of Value Proposition

Newness Offering innovation Nike, Amazon
Performance Reliable and durable performance Phillips Lamp
Customization Special made for particular person Boutique
Design Unique, elegant, attractive look iPhone 6s
Convenience/ Easy to use and to operate Windows
usability
Accessibility Easy access BRI
Price Reasonable price Lion air, Southwest airline
Brand/status Exclusivity Rolex, Hermes
Getting the job Fast and reliable Honda AHASS
done
• Transportati • Women &

on apps- Men
based • 15 – 50
• Lifestyle years old
• Low –
middle class
• Small
Enterprises
3. Channel
Key Question
• Through which Channels do our Customer
Segments want to be reached?
• How we are reaching them now?
• How are our Channels integrated and How are
we integrating them with customer routines?
• Which ones work best, most cost-efficient?

on apps- Men
based • 15 – 50
• Low –
middle class
• Small
Enterprises
• Apps
• Online
4. Customer Relationship
Describe the types of relationships a company establishes

with specific customer segments
Key Question
• What type of relationship does each of our customer
segments expect us to establish and maintain with them?
• How costly are they?
• How are they integrated with the rest of our business
model?
Example of Customer Relationship

Personal assistance Communicated via email, phone and GFF Platinum
air mail
Dedicated personal Provide dedicated employee to UOB Priority
assistance serves super premium customer
Self services Customers serve themselves with ATM
technology assistances
Automated services More sophisticated than self services M Banking
with customers character
recognitions
Communities Facilitate forums, chat room among GlaxoSmithKline, Honda
customers
Co-creation Together with customer creates Youtube, Amazon,
values Kompasiana

• Personal
on apps- Men
Dedicated
based • 15 – 50
Services
• Low –
middle class
• Small
Enterprises
• Apps
• Online
5. Revenue Streams
Represent the cash a company generates

from each customer Segment (cost must be
subtracted from revenues to create earnings)
Key Question
• For what value are our customer really
willing to pay?
• How are they currently paying?
• How much does each revenue stream
contribute to overall revenues?
Example of Revenue Streams
Asset sale Income from selling Kijang Innova

product/services
Usage fee Income from usage rent Hotel, operator telpon
Subscription fee Collected money to access one Jawapos online, Majalah
product/services (monthly/weekly) Tempo online
Lending/Renting Income from lending or renting TRAC Astra rent a car
product for determined time
Licensing Income from brand usage Franchising, McDonald
Brokerage fees Income from the third person Century 21
Advertising Income from the advertising Facebook, Detik

• Personal
on apps- Men
Dedicated
based • 15 – 50
Services
• Low –
middle class
• Small
Enterprises
• Apps
• Online
• Transportation Services
• Advertisement
• Investor
• Partnership Fee
6. Key Activities
Describe the most important things a company must do

to make its Business model work
Key Question
• What key activities do our Value proposition require?
• Our distribution channels?
• Customer relationships?
• Revenue streams?
Example of Key Activities
Production designing, making, delivering Exxon Mobile

products
Problem Solving ex-consultancies, hospital, service Accenture
industry
Network Ebaywebsite, Visatransaction E Bay
platform, MicrosoftOS platform
• Transportation • Transportati • Women &

• Personal
service on apps- Men
Dedicated
• Apps based • 15 – 50
Services
Development • Lifestyle years old
• Low –
middle class
• Small
Enterprises
• Apps
• Online
• Advertisement
• Investor
• Partnership Fee
7. Key Resources
Describes the most important assets required to make a

business model work
Key Question
• What key resources do our value propositions require?
• Our distribution channels?
• Customer relationships?
• Revenue stream?
Example of Key Resources
Physical Manufacturing, facilities, building, Wal mart

vehicles, machines, distribution
networks
Intellectual Customer database, brands, Microsoft
patents, customer database
Financial Cash, credits stocks option Ericsson
Human Important in creative company, Novartis, Apple

pharmaceutical company,
innovative company
• Transportation • Transportati • Women &

• Personal
Dedicated
Services
• Low –
middle class
• Small
Enterprises
• Apps
• Human
• Online
Resources
• Apps
Development
• Advertisement
• Investor
• Partnership Fee
8. Key Partnership
Describes the network of suppliers and

partners that make
the business model work
Key Question
• What are our key partners?
• Who are our key suppliers?
• Which key resources are we acquiring
from partners?
• Which key activities do partners
perform?
Example of Key Partnership
Strategic alliance Cooperation between non competitor Garuda join STAR alliances
Coopetition Cooperation between competitor ATM Bersama

Joint ventures Cooperation to form a new business AXA Mandiri
Buyer-seller Cooperation for buyer and seller using Carrefour

relationship contract
• Go-Jek • Transportation • Transportati • Women &

Driver • Personal
• Merchant Dedicated
• Retail & Services
Food Store • Low –
• Entertainme middle class
nt Organizer • Small
Enterprises
• Apps
• Human
• Online
Resources
• Apps
Development
• Advertisement
• Investor
• Partnership Fee
9. Cost Structure
Describe all costs incurred to operate a business model

Key Question
• What are the most important costs inherent in our
business model?
• Which key resources are most expensive?
• Which key activities are most expensive?
Example of Cost Structure
Fixed costs Expenses that do not change as a function of the Salary,

activity of a business, within the relevant period overhead cost
Variable those costs that vary depending on a company's Fee, Bonus,

costs production volume; they rise as production increases Raw material
and fall as production decreases cost per unit
Economies the cost advantages that enterprises obtain due to Semen Tiga
of scale size, output, or scale of operation, with cost per unit Roda, Toyota
of output generally decreasing with increasing scale as
fixed costs are spread out over more units of output.
Economies a proportionate saving gained by producing two or Coca Cola, Wal
of scope more distinct goods, when the cost of doing so is less mart
than that of producing each separately.
• Go-Jek • Transportation • Transportati • Women &

Driver • Personal
• Merchant Dedicated
• Retail & Services
Food Store • Low –
• Entertainme middle class
nt Organizer • Small
Enterprises
• Apps
• Human
• Online
Resources
• Apps
Development
• COGS • Transportation Services

• Salary • Advertisement
• Rent • Investor
• R&D • Partnership Fee
BUSINESS MODEL CANVAS – NIION
(www.niion.co)
BUSINESS MODEL CANVAS – NIION
(www.niion.co)
Thank You nurdini.prihastiti@sbm-itb.ac.id

Business Model Canvas: Nurdini - Prihastiti@sbm-Itb - Ac.id

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Business Model Canvas

capturing value within a value Business Business Model

Business model describes the rational

• Defines the different groups of people or organizations

Type Definition Example

Describe the bundle of products and services that create

Type Definition Example

• Transportati • Women &

• Transportati • Women &

Describe the types of relationships a company establishes

Type Definition Example

• Transportati • Women &

Represent the cash a company generates

Asset sale Income from selling Kijang Innova

Brokerage fees Income from the third person Century 21

Advertising Income from the advertising Facebook, Detik

• Transportati • Women &

Describe the most important things a company must do

Type Definition Example

Production designing, making, delivering Exxon Mobile

• Transportation • Transportati • Women &

Describes the most important assets required to make a

Type Definition Example

Physical Manufacturing, facilities, building, Wal mart

Human Important in creative company, Novartis, Apple

• Transportation • Transportati • Women &

Describes the network of suppliers and

Type Definition Example

Coopetition Cooperation between competitor ATM Bersama

Buyer-seller Cooperation for buyer and seller using Carrefour

• Go-Jek • Transportation • Transportati • Women &

Describe all costs incurred to operate a business model

Type Definition Example

Fixed costs Expenses that do not change as a function of the Salary,

Variable those costs that vary depending on a company's Fee, Bonus,

• Go-Jek • Transportation • Transportati • Women &

• COGS • Transportation Services

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