Business Model Canvas (BMC) is a famous business model innovation writer and business consultant Alexander? Ostwald? Lder) in 2008. This is a tool for standardizing elements, which is used to describe and visualize business model elements and emphasize the interaction between elements.
It contains nine modules, as shown in the figure below. Through the analysis of these modules, enterprises or entrepreneurs can be helped to generate flexible ideas and plans, so as to ensure that they can find suitable target users and meet users' needs reasonably.
Why use commercial canvas for visual design?
The business model design method of business model canvas is the right brain visualization design method. A business model is indeed a system, in which one element can influence other elements, and it only makes sense when viewed as a whole. Without visualization, it is difficult to capture the whole business model.
In fact, by describing the business model visually, we can turn invisible assumptions into clear information. This makes the business model clear and tangible, and the discussion and change are more clear. Visualization technology endows business model with "life" and can promote people's co-creation.
first step
First, we need to determine the target users.
1- customer base
-Different people or organizations that the enterprise wants to contact and serve.
The key issues to be clarified here are:
Who are your target users and customers?
Whose problem is to be solved?
Create value for whom?
When do you need to segment customers? The following are some conditions for dividing the customer base:
Their demand has given birth to new supply (new demand inevitably needs suitable solutions);
Need to establish new distribution channels (such as rural users targeted by Haier and other companies' policies of going to the countryside);
It is necessary to establish new customer relationships (for example, self-service ticketing service in self-service ticketing office, online ticketing service and manual service of window ticketing, etc.). );
Their profit margins are significantly different (for example, free users and paying users in online games think of a sentence: free users are experience services provided to paying users);
They are willing to pay for some special improvements (such as being able to eat a hot pot, people who eat a lifestyle, and so on). ).
What is the type of customer segmentation? Please read the following:
Mass market (this is a basically indistinguishable customer group, and organizations will blur the needs and problems of a huge group, that is, provide the same products and convey information to all consumers in the market in the same way, that is, mass production, mass distribution and mass promotion, such as Coca-Cola, which is almost unchanged, although some people will have different hobbies when drinking a cup of Coke, sweet or sugar-free).
Niche market (specific and specialized market, for example, many auto parts manufacturers rely on purchasing from mainstream car manufacturers and pet lovers who want to keep lizards)
Customer groups that seek common ground while reserving differences are subdivided (the problems are the same but the needs are slightly different, for example, banks divide customers into different credit lines, such as enterprises or individuals. )
Diversified customer groups (a solution faces different groups with different needs and problems, but adopts the same method. For example, customers who use the network cloud disk may enjoy it or store it.
Multilateral platform (multilateral market) Multilateral platform/multilateral market (some organizations serve two or more groups, and most online platforms use this method, such as Uber's rider and driver groups, or Taobao's merchants and buyers).
-For Uber, its customers are:
Ordinary users:
No car;
Don't want to drive their cars to do something unimportant or inconvenient to drive;
Want to have the same feeling as VIP, you can travel in fashion;
Want to have a cost-effective taxi service anytime, anywhere.
Driver group:
Have a car and want to make money;
People who like driving;
I want to be called a cooperative participant, not a driver's employee.
Second step
Then we talk about the value proposition and determine the needs and problems.
2- Value Proposition
-A series of products and services that meet the needs of segmented customers and solve their problems to create value.
The key points here are:
What kind of value should we deliver to our customers?
What kind of problems are we helping our customers solve?
What customer needs have we met?
What combination of products and services can be provided to the customer base?
Can you understand customers deeply and provide differentiated or targeted value?
Value can be generated from the following aspects:
Novelty (some values advocate providing new experiences and services, such as Disney providing home luggage delivery service for home users)
Performance (improving the performance of products and services can also create value, such as mobile phones, computers and other electronic products constantly improve the performance to attract users to spend again, which is the energy gathering ring of Fu Nan batteries)
Customization (customization to meet the special needs of customers, such as Taobao customizing different advertisements and weddings for buyers with different behaviors and lifestyles. )
Do a good job (do a good job and create a quality experience, such as Haidilao and Che4s shop)
Design (design is difficult to measure, generally speaking, design brings differences, so it will produce value, such as Porsche)
Brand/status Brand/status (identity is expressed by using or displaying a brand, just like the symbol that Chao Supreme can bring to buyers)
Price (providing homogeneous services at a lower price can also create value, such as Xiaomi mobile phone and low-cost airlines)
Reduce costs (help users cut costs, such as melon seeds used cars, there is no middleman to earn the difference)
Reduce risks (help to control risks, such as funds and insurance with stable income)
Accessibility (expanding products and services to more customers, such as rural express service)
Convenience/usability/ease of use (making things more convenient or easy to use can create considerable value, such as the portability of notebook computers, or the difference between the performance and cost performance of desktop computers and office practicality)
-For Uber, its value proposition is:
User:
Minimum waiting time;
Compared with taxis, the price is lower;
Can predict the arrival time;
No cash transaction (there are differences in payment methods at home and abroad);
You can see the driving track on the map.
Driver:
Employment opportunities and another source of income;
Flexible working hours and part-time jobs;
The payment process is simple;
You can get paid online;
Third step
Then, we must consider how to reach out to them and connect our customers with our value proposition.
Three-channel channel
-Our docking users or users contact our distribution channels, paths or platforms, etc.
The key points here are:
What channels are used to establish contact with customers?
How to establish contact?
How is the channel formed?
Which channel works best?
Which channels are more cost-effective?
How to combine these channels with customers' daily life and work?
Traditional channel types are divided into:
Own channels-offline, online, own stores or platforms.
Partner channels-partner stores and wholesalers
And the establishment of channels is a process:
Visibility-How to expand the visibility of products and services and convey our existence to target users?
Evaluation-How to help customers evaluate our value proposition.
Consumption-How do customers buy products and services?
Delivery-How do we deliver our value to our customers?
After-sales service-how can we provide after-sales support and help to our customers?
Corresponding to the above process, channel access has the following functions:
Raising awareness can help customers learn more about the company's products and services and turn traffic into consumption, such as Taobao's advertisements.
Help customers evaluate a company's value proposition and let them adopt our products or services, such as Apple's offline experience store.
Provide more consumption points, let customers buy a product and service, and produce consumption behavior.
Deliver value proposition to customers, solve problems and realize requirements.
If there are problems, you can provide after-sales support to customers.
-For Uber, its channels are:
Website;
Mobile applications (Android and ios).
Fourth step
So what kind of relationship do we establish with customers through channels?
4- Customer Relationship Customer Relationship
-Type of relationship with each customer group
Is to achieve the goal, enterprises take the initiative to establish contact. This kind of contact may be a simple transaction relationship, a communication relationship, a special contact opportunity for customers, or a sales contract or alliance relationship of mutual interests.
The key points here are:
What kind of relationship does each customer group expect to establish and maintain with us?
What kind of relationship has been established?
What are the costs of these relationship types?
How do these customer relationship types integrate with other modules in our business model?
Common types of customer relationships are:
Personal assistance (this type of relationship is based on interpersonal interaction, such as customer service and shopping guide)
Dedecated personalassistance (this type of relationship includes special customer representatives arranged for a single customer, which is the deepest and most intimate relationship type and usually takes a long time to establish, such as personal doctors and real estate sales).
Self-service (not directly related, but all the conditions needed to provide self-service for customers, such as ATM, self-service ticket vending machine)
Automated service (compared with self-service, it integrates more elaborate automated processes, such as customized advertising and QQ friend recommendation).
Community community (use the user community to establish a deeper connection with customers/potential customers and promote the interaction between community members, such as post bar and douban, etc.).
* * * Co-creation (many companies go beyond the traditional customer supplier relationship with customers and tend to create value with customers * * *, such as Zhihu and Public Comment).
In addition, in marketing, customer relationship can also be divided into buying and selling relationship, supply relationship, partnership relationship, strategic alliance relationship and so on.
Generally speaking, there are many types of relationships between enterprises and customers, because they are in contact with more subdivided customers, and the degree of customer relationship connection of each enterprise is different.
So what is the driving force of customer relationship and why do you want to establish these customer relationships?
Develop new customers
Retain existing customers
Increase sales and consumption rate.
-As far as Uber is concerned, its customer relationship is:
Partner: Form a similar partner with the driver.
Self-service: users and drivers register themselves through apps and websites.
* * * Co-creation: feedback and evaluation system of users and drivers (optimizing their own platforms and providing better services)
Community: social media (in fact, this aspect is more similar to the relationship between * * * and creation, and more as another feedback and evaluation system)
Step five
After determining the customer part, we should think about how we need to profit from it.
5- Revenue stream
-Used to describe the revenue sources that the company obtains from each customer group.
The focus of this question is:
Do you understand the value proposition that customers are really willing to pay?
What is the current value proposition of customer payment?
What is the payment method currently used by customers?
What kind of payment method do you prefer?
What is the contribution ratio of each income source to the total income?
General sources of income can be divided into:
Asset mortgage sale (the most common way of income, such as real estate or general goods)
User fees (fees for specific services, such as telecom operators)
Subscription fee subion fees (charged through income reuse, QQ red orange yellow green blue purple diamond, video website member)
Lending/renting (charging by temporarily owning an asset or commodity for a fixed period of time, such as * * * enjoying a bicycle ofo mobike, etc.). It's more like leasing, not in the strict sense.
License fee (license of intellectual property or image to be protected, such as patent fee, IP usage fee, Android license, image spokesperson).
Brokerage fee (intermediary service fee integrating multiple interests, such as real estate agency fee)
Advertising fee (various advertising promotion service fees, such as advertisements that run out from time to time in YouTube and promotion fees of search engines).
Let's talk about the pricing mechanism:
Fixed price—
Label or catalog price (list price of menu or supermarket)
Based on product characteristics (tangible and intangible products or services, tangible according to appearance, quality, function, brand, etc. Intangible, similar to common services)
Based on the customer base (Tony's brother's membership card, the average customer is full price, and the membership price is 20% off)
Quantity-oriented (selling bamboo and mouse music, three yuan each, ten yuan three)
Floating price—
Through negotiation and consultation
Income management
Real-time market price (similar to stock)
Auction bidding
—— As far as Uber is concerned, its sources of income are:
Rent or draw;
Premium (such as peak premium);
Pricing by model, such as Uber X, Uber SUV, Uber Taxi, Uber Black, etc. For different vehicle groups.
Other commuting service fees, such as special commuting services, such as ferries and helicopters (applicable to a few foreign regions)
Step 6
Next, we need to discuss infrastructure. What do we need to make a profit?
6- Core resources Key resources
-Capital, talents, brands and other most important factors that make the business model work effectively.
The key points here are:
What resources are needed for the value proposition?
What resources do distribution channels need?
What resources are needed for customer relationship?
What resources are needed for income sources?
So how do you classify resources? Please read the following:
Physical resources in kind (tangible resources, such as factories and equipment, such as traditional product manufacturers)
Intangible intellectual resources intelligence (brand, property rights, image, Disney's pile of intellectual property resources, etc.)
Human resources (literally, for example, Huawei has many talents who are keen on R&D and many salespeople, and Tencent has a large number of social users).
Financial resources finance (faith, such as JD. COM, Wang Jianlin's middle meaning)
As far as Uber is concerned, its core resources are:
Technical platform;
Experienced driver
Step 7
Now that we have resources, it's time to do something practical.
7- Key activities of key business
-The most important thing an enterprise must do to ensure its business model is feasible.
Any business model needs all kinds of key business activities. These businesses are the most important actions that must be implemented for the successful operation of enterprises. It is the basis of creating and providing value proposition, contacting the market, maintaining customer relationship and obtaining income. For example, telecom operators should install and maintain base stations, and Supreme should design and maintain brand image.
The focus of this question is:
What key businesses are needed to deliver the value proposition?
What key businesses are needed to establish distribution channels?
What key businesses are needed to maintain customer relationships?
What key businesses are needed to obtain revenue sources?
Commercial activities, such as:
Production (the core of traditional manufacturing industry is to produce and manufacture goods)
Proplem solution (provide solutions for individual users, design industry, brand and service design services provided by design companies, etc.). )
Platform/Network Platform/Network (a business model with platform as its core resource, and its key business is related to the platform or network, for example, Weibo wants to maintain its own servers).
The detailed business types are almost different in different industries, and the content is rich, so I won't go into details. Interested parties can search their own industry classification and business category.
—— As far as Uber is concerned, its main business is:
Product service development and management;
Market development and user acquisition;
The cost of hiring and managing drivers;
User support system
Step 8
In order to do this, we need to seek outside help.
8- Important Cooperation and Key Partnerships
-The network of suppliers and partners needed to make the business model work effectively.
The focus question is:
Who are the key partners?
Who are the main suppliers?
What core resources do we get from our partners?
What key businesses are our partners involved in?
Why should we establish a cooperative relationship?
Business model optimization and scale effect (Coca-Cola hasn't raised its price for so many years, mostly because of scale production, but also because of the profit-making strategy of beverage companies, which is not explained here).
Reduce risk and uncertainty
Acquisition of special resources and commercial activities (such as the strategic cooperation between Tencent and JD.COM. COM)。
Our partner may also be our customer, so the customer relationship in marketing also applies to the cooperative relationship:
Strategic alliance between non-competitors
Strategic alliance between competitors (many mobile phone brands grant patents to each other)
Establish joint ventures for new businesses (such as Uber and Didi)
Establish suppliers and buyers to ensure reliable supply.
—— As far as Uber is concerned, its partners are:
A driver with a car;
Payment processing system;
Map application suppliers;
Investors;
Step 9
To sum up, we need to determine the cost.
9- Cost Structure Cost Structure
-All costs incurred in running a business model.
The key points here are:
What is the most important internal cost of the current business model?
What is the most expensive core resource?
What is the most expensive key business?
General cost structure level:
Cost-driven (pricing is based on the cost of a product or service)
Value-oriented and value-driven (the product price depends on the customer's feelings and understanding of the value of products and services)
Characteristics of cost structure:
Fixed cost (the total cost does not change with the business volume, or the unit fixed cost decreases with the increase of business volume, which is generally the upfront investment, such as the mold opening cost of product manufacturing. The larger the volume, the cheaper the cost of goods, such as the rental investment of company offices. )
Variable cost variable cost (this kind of cost changes with the change of quantity, which is generally the cost after the actual business starts. Such as purchasing raw materials, electricity consumption, etc. )
Scale economy (refers to expanding the scale to reduce the average cost in order to pursue the best economic benefits, but too large a scale will become an uneconomical phenomenon, such as the current phenomenon of cabbage prices in steel. )
Scope economy (refers to expanding the scope to reduce the average cost, and also refers to the economic model that joint production is cheaper than separate production. For example, in a telecommunications company, it is cheaper for Apple to manufacture several different models of iPhone series phones than to manufacture an iPhone and then a Macbook, because many components, resources, R&D and design can be used in the same series).
As far as Uber is concerned, its cost structure is:
Technical infrastructure;
The employer's salary;
Market development and platform promotion expenses.
Ok, the canvas of the business model is finished.
Characteristics of business model canvas:
Integrity: Although it is only the size of a page, it can basically determine all aspects of the business model of a product, so that ordinary people can see at a glance whether the business model of this product is complete or has great flaws.
Consistency: You can judge whether all aspects of the business model are consistent. For example, are the assumptions of partners consistent with those of channel access?
Readability: You can clearly let others know what you are doing, why you are doing it, what you need and what you can bring.
In addition, these nine modules can also be classified:
Customer interface: customer segmentation, channel access and customer relationship.
Value proposition: value proposition
Operation mode: main business and core resources
Infrastructure: core resources, key businesses and partners.
? Financial structure: cost structure, income source
The business model canvas is more than just a drawing tool. When you fill in each module, it doesn't mean the end, but just the beginning. The most important thing is the later evaluation and adjustment.