How can BMC elevate your business awareness?

Business Model Canvas is a strategic management tool to assist you in developing your business. The business market is shifting with innovation and technological advancement, therefore its important to have a clear understanding of the business and the activities that aligned. Being clear and concise of the business activities helps predict how well the business will perform in the upcoming days.

The last thing you want is an innovation that the whole market adapts and becomes successful, while you are unable to understand what went wrong with your business.

However, if you understand what the missing holes in your business are, then a clear business scenario can be created, recognize where your organization sits today, and where it will be tomorrow.

 

There are several components in BMC :

Key Partners: To whom does the business collaborate with?

Key Activities: What does the business do actually?

Value Proposition: What is the business positioning the products/services?

Customer Relationships: How does the customer value the products?

Customer Segment: Who are we conveying our products/services to?

Channels: What are the means to approach customers effectively?

Revenue Streams: How does the business earn money?

Cost Structure: What are the cost included within the business?

Here is a template of the BMC.

Building a Business Model is not just about making money. It’s more about creating value in a society, having economic value fostering what the companies believes in, and what the company is trying to achieve.

This helps employees to envision what the company is trying to do.

Lets look at the value proposition of Google Business Model.

Value Proposition:

  1. Users: Free Search Engine
  2. Publishers: Easily Monetize my content
  3. Business: Get more sales through targeted Ads

 

They provide value proposition to many stakeholders, creator, businesses and users. Users provide data to monetize keywords, Business bid on keywords, for which publishers get their payment for the content, and the users get free and quality content for Google search.

In this process, the Google provide value for several stakeholders, which generating revenue through the targeted ads and monetization.

BMC is mostly used by entrepreneur, whose business journey is uncertain. The Canvas helps them understand what kind of business they have, it is also useful for the evolving business fields that is competitive.

It is a continual process, where you might need to update the Business Model Canvas where there is any new changes in your business segment.

The most essential aspect of any business is the value that the organization is delivering to different stakeholders. You can see the example of Google, its value has helped the users to get limitless access of information around the world. The greater the impact of value to the customers, partners, the more potential there is for revenue generation.