Business Model Canvas

Business Model Canvas Introduction

1. Business Model Canvas Mohamed Sami 1 From Idea to Model

2. About me Mohamed Sami Enterprise architect and software engineer. Mohamed Sami has more than 13 years of professional experience and was involved in more than 40 governmental projects with different roles and responsibilities for execution and management of projects and drafting of the conceptual architecture and detailed designs for different national solutions. Moreover, Mohamed contributed to different digital strategies in the government sector, which enriched his business and technical skills over the past years. Mohamed Sami is a value-driven individual, one of his personal goals, is how to become more valuable to society from his career and creating a conscious business. Through Mohamed’s career journey, he worked with a lot of vendors in Information technology and services industry from consulting companies, IT and services companies, infrastructure-focused companies and International vendors. Mohamed Sami has a comprehensive business and technical skills and expert in Software Engineering, business process, technology management, requirements engineering and management, program and project management, software development life cycles, web technologies and Agile development. Mohamed received his bachelor degree in systems and biomedical engineering from Cairo University in 2006 before receiving the master degree in software engineering in 2014 from Nile University. Mohamed is self-learning who always wants to learn new technologies, tools, and improves his skills. Mohamed is contributing some of his time as a mentor and a beta tester in Coursera platform. He is authoring of his personal blog to share software engineering practices which have a lot of visits worldwide. He is passionate about technology, innovations, new business ideas, business strategies and information management. 2 https:// melsatar.blog /

3. Why do we need a business model? 3

4. The Business Model Canvas What is a business model? What is the purpose of the business model canvas? A Business Model describes… the rationale of how an organization creates, delivers, and captures value. Mohamed Sami - https://melsatar.blog/ 4

5. The Business Model Canvas From Idea to Business Model Why this idea, what is the business value, who are the customer Select the idea Present why, how, what, who, where, when Tell the story Place your idea into BMC Model 9 blocks Build the model Ready to have it in action Business Mohamed Sami - https://melsatar.blog/ 5

6. Mohamed Sami - https://melsatar.blog/ 6 The Nine Building Blocks Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Who are our customers? What is the value we need to deliver? How we can deliver the value and communicate with customers? The expected relationship for our customers? What are the sources of the revenue? What are the resources required to deliver the value? What we do in order to deliver this value? Do we need partners to be able to deliver the value to our customers? What are the cost to build and operate our business?

7. Mohamed Sami - https://melsatar.blog/ 7 Let us take one by one Strategyzer : Getting From Business Idea to Business Model Getting From Business Idea to Business Model Video

8. Start now Write your project idea, the drivers to have this idea 8

9. Mohamed Sami - https://melsatar.blog/ 9 Customer Segments The different groups of people you aim to reach and serve. It is the heart of the business model Customers are grouped into segments based on common needs, problems, or behaviors. large group with broadly similar needs E.g. All population Mass Market A specific group with very specific needs. E.g. Bloggers Niche Market Groups with slightly different needs. E.g. Technology Bloggers, Health bloggers Segmented Steps: List all of your target potential customers segments Choose one or two that you can start with Focus on th ose customers concerns and needs Profile them and make personas

10. Who are Customers? Define what are your customer segments? 10

11. Mohamed Sami - https://melsatar.blog/ 11 Value Proposition The Value Proposition is the reason why customers turn to one company over another The Value propositions is typically the benefits that a company offers to their customers. Some may be innovative and represent a new or disruptive offer. Some may be high quality service Some may be affordable cost Others may be similar to existing products and services but with added features. Selecting the value must touch customer’s most critical pain or need and how this value will satisfy this need and eliminate this pain. Speed of service Pricing innovations and competition Adding new features E.g. Huawei, Carrefour Quantitative Improve the customer experience Improved emotional strategies Enhancing status Personalization E.g. Apple, Uber, Netflix Qualitative Disrupt an industry through new product, service, or industry E.g. Tesla, iPhone, Xerox Radical & Game -Changing

12. What is your idea value proposition? Try to list your idea benefits, and how they are related to the customer needs? Which category your benefits fit in? 12

13. Mohamed Sami - https://melsatar.blog/ 13 Channels How will we communicate with and reach the customers to deliver our value Channels serve as touch points that determine the customer’s acknowledgment and satisfaction. Website Direct Partners Stores & others We establish channels for sales, marketing, communications, getting feedback, deliver value, support, …etc.

14. What is your model channels? List how would you like to communicate with your customers? 14

15. Mohamed Sami - https://melsatar.blog/ 15 Customer Relationships The relationship that each Customer Segment expect us to establish and maintain with them? Customer relationships can range from highly personal to automated Personal Assistance Dedicated Personal Assistance Self-Service Co-Creation Communities The drivers to establish the relationship: Acquire customers Retain customers Increase sales (upselling & cross selling) Think about open source tools, the main customer relationship through community knowledge, while for mobile operators through Personal assistance and self-services Long Term Deep relationship E.g. Banks Transactional One time E.g. Airports, Kiosks

16. Think about relationships you want to establish 16

17. Mohamed Sami - https://melsatar.blog/ 17 Revenue Streams Customer Segments is the heart of a business model, the Revenue Streams are its arteries How we get money as revenue to sustain our business? Each Revenue Stream has a pricing mechanism such as fixed list pricing, discount pricing, market dependent pricing, or volume dependent pricing one-time customer payment E.g. Buy book, computer, or phone Transactional Ongoing payments E.g. Subscription, Usage, renting, Licenses Recurring

18. Money $$$ List sources of revenues 18

19. Mohamed Sami - https://melsatar.blog/ 19 Key Resources Key Resources to deliver the Value Proposition to the Customer Segments What are the resources required to create, deliver, maintain, and improve the value? The resources helps in creating the relationships, reaching the customers. Intellectual Property brands, proprietary knowledge, patents and copyrights, partnerships, and customer databases Financial cash, lines of credit, or offering stock options Physical Manufacturing facilities, buildings, vehicles, machines, systems, point-of-sales systems, and distribution networks Human Manpower of humans that creates the industry and knowledge

20. What are the key resources? List your business resources categorized, that will help to identify their cost 20

21. Mohamed Sami - https://melsatar.blog/ 21 Key Activities What are the actions the company do to operate successfully. It is closely related to Key partnerships Information Technology 01 Operation and Production 02 Marketing and Sales 03 Finance and Administration 04 In order to perform the activities, you need the resources, partnerships, channels. The model is very connected. You need to think who will perform these activities, how, and why these activities are important to your business

22. What are the main activities you want to perform? 22

23. Mohamed Sami - https://melsatar.blog/ 23 Key Partners Your network of suppliers, partners, and strategic alliances Strategic partnerships between competitors Joint Ventures to develop new businesses Buyer-Supplier Alliances to assure reliable supplies Strategic alliances between non-competitors Focus on your business activities and outsource what partners can do. E.g. home delivery can be outsourced if you need to focus on production and manufacturing E.g. outsourcing building technological platform to development company if it is not your core competencies

24. Think about your partnerships 24

25. Mohamed Sami - https://melsatar.blog/ 25 Cost Structure All costs incurred to operate your business model Cost-Driven Minimizing costs wherever possible Value-Driven Focus on value creation regardless the cost implications It includes cost of: Resources Equipment Facilities Activities Platforms … Economies of scale Cost advantages that a business enjoys as its output expands E.g. Cloud Economies of scope Cost advantages that a business enjoys due to a larger scope of operations E.g. Multi products Fixed cost Costs that remain the same despite the volume of goods or services produced E.g. Salaries, facilities Variable cost Costs that vary proportionally with the volume of goods or services produced E.g. Events, Software Development

26. What are the cost sources for our business? 26

27. Let us have an example 27

28. Mohamed Sami - https://melsatar.blog/ 28 Health Services Locator The Business goals Provide excellent experience for people to locate the best and affordable health care services Self-services for people with 0 cost to use Improve the health care services in Egypt Establish information base about the health service performance and coverage The Business Drivers Poor health care services and high cost Scattered opinions and rating No industry standards for level of services versus cost The eco systems of health providers and health insurance

29. Mohamed Sami - https://melsatar.blog/ 29 Health Services Locator Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Mass Market 25 to 60 years old Call center Online health platform Emails Trusted Reviews Health plans Near Locations Service Quality Online Appointments Discounts & offers for visits and medications Medical advice Health Providers Subscription Health ads Market research reports Health locator online platform Human Resources Operations Partnership Marketing & Sales Personalization Office Rent Health Providers Medical Equipment Providers Medications and Drugs Companies Marketing Agencies Health Insurance Providers Certified Health planner Free services Infrastructure Platform & App Development & maintenance Human resources Marketing Providers Registration Search engine Ads Anonymized Data Exchange programs for research Call Center Mobile app Mobile app Community

30. References [1] S. AG, " Strategyzer | Trusted by over 5 million business practitioners",  Strategyzer.com . [Online]. Available: https:// www.strategyzer.com /. [Accessed: 22- Jun- 2019]. [2] "Ep 1 - Getting From Business Idea to Business Model", YouTube, 2013. [Online]. Available: https:// www.youtube.com / watch?v = wwShFsSFb -Y. [Accessed: 22- Jun- 2019]. [3] A. Cowan, "The 20 Minute Business Plan: Business Model Canvas Made Easy", Alex Cowan. [Online]. Available: https:// www.alexandercowan.com /business-model-canvas-templates. [Accessed: 22- Jun- 2019]. Mohamed Sami - https:// melsatar.blog / 30

31. Mohamed Sami THANK YOU. Mohamed Sami - https://melsatar.blog/ 31