Background and case company presentation
Objectives, research questions and scope
This thesis aimed to develop a business model canvas for Case Company as well as a further developed value proposition canvas. The objective of this thesis was to create a business model for the case company and to understand how these particular tools help to analyze the current situation of a company.
Theoretical background
This chapter takes a deeper look at the two parts of the business model canvas with the theory of the value proposition canvas. The Value Proposition Canvas is also a tool created by the same authors Osterwalder & Pigneur.
Research strategy and methods
This chapter also contains more theory about the meaning of the value and the value proposition and knowledge about customer profiles. In this research, the documents and articles on the Business Model Canvas and The Value Proposition Canvas are collected and analyzed to support primary data collection methods.
Thesis structure
Visual tools make it easier for the Business Model Canvas to create, explore, change and define with other people (Osterwalder & Pigneur 2010, 148). The business model also includes business customers, markets, marketing, product development, product/service and partners.
Customer segments
An example can be Amazon, which sells physical products through websites, but today also offers cloud storage solutions to its customers. Just like a newspaper company that provides free newspapers to its customers, it needs advertising to finance production and distribution, as well as a large readership to attract businesses to advertise in their newspaper.
Value proposition
Personalized products or services are an element where value can be created for specific customers. This approach will benefit from economies of scale with customized products and services.
Channels
The company is still in the initial stage and has not made sales or claimed a role in the markets. It is also the following part of the channel building block in the business model canvas.
Customer relationships
In the business model canvas, Customer Relationships is the building block that describes the type of relationships a company has established with the customer segment. Here, self-service is part of the digital process, and at best it can simulate a personal relationship.
Revenue streams
So if R&D drives the business, you should set your revenue model to support it. Build your revenue model so that investors can see the expected return on investment from there. Show what the horizon looks like in the future and what milestones there are where you generate revenue.
Keep an open mind and accept the fact that you may need to make changes to your revenue model.
Key resources
In Jenga games, if you remove the wrong block from the tower, it will collapse. Key resources are expensive to own, so the company should consider outsourcing the less essential functions to the Key Partner.
Key activities
Key partners
Is it also an excellent time to think about whether your company can deliver value to our customer segments without this supplier. In addition to suppliers, stakeholders include employees, vendors, end users, and other partners in your business. There is no need for the company to own every resource or perform every activity by itself.
It is a good idea to reduce costs and optimize work to create partnerships with other companies. The second reason is to reduce risks and uncertainty by creating a strategic alliance between companies. Furthermore, it is not uncommon for competitors to also form this type of partnership in some areas.
It may motivate the company to acquire know-how, license or access to customers from other companies.
Cost structure
The next part of the diploma thesis is aimed at creating the right business model for the example of the company. The Business Model Canvas is considered a more versatile version of the business plan. In this thesis, the goal was to create this business model canvas for a company example.
At the beginning of the workshop, the participants were presented with the "Business Model Canvas" with sample questions for each section (Appendix 1). The author of this thesis was the keynote speaker and chaired the workshop. The process of designing the Business Model Canvas was that the canvas was painted on the whiteboard.
All the remaining blocks of the business model canvas were handled by hand and written to the board.
Workshop results
It can be said that customer intimacy strategy is a big part of customer relations and is an integral part of a company's business thinking. Human resources are the company's greatest asset, as the company's employees are trained and have different knowledge and experience from different aspects. Physical key resources in the case of a company are also machines that the company owns, such as demo units of a developed product.
This network is the result of the networks of the case company's employees and the other companies of the owner company. These three activities are in the right hands with the business company because one dedicated employee works for the company with each action. These activities are sales and marketing, business development, and raising awareness of the case company.
With these two siblings, the case company has some other good key partners.
Customer profile
The buyer expects or demands some profit that the product should provide. What results meet your client's expectations and what would exceed his/her expectations. Constraints can be the too high price of the solution or something else. they are risks for businesses, so they don't dare to buy something new.
An ideal customer profile defines essential information about what you want about the customer (Campbell 2016, Search Date. These personal profiles help your sales team get inside the customer's head and find their pain points and how they make decisions. In larger organizations, these types of people may be outside the company.
34;Big boss" who is ultimately responsible for product selection and purchase decision.
Value map
Understanding your customer's benefits, pains, and pain points and understanding how your new product or service responds to them is one of the most important parts of building a business strategy. A Value Map is a visual tool that allows you to plan what problems or wants your product or service addresses in a way that allows you to find a match between your product and your customers' expectations. In the pain relief block, you should address all features of your product that address the customer's pain.
The company should not try to deal with all the pains that customers have because it is a dead end. Will rid your product of barriers that keep your customer from adopting solutions. Like the painkillers, the company should not try to achieve all the profits of the customers, but to focus on the relevant and those that make you different from the others.
Will your product produce results that your customer expects or that go beyond their expectations.
The fit
It is based on your customers' expectations and desires in the form of emotions, social gains, usage or cost savings. You haven't reached business model fitness until you make more money with your value proposition than you incur costs to create and deliver it. The purpose of the Value Proposition Canvas is to help you design great Value Propositions that match your customer's needs and tasks to be done and help them solve their problems.
This is what the startup scene calls product-market fit or problem-solving fit.
Value Proposition
Before that, the value presented by the company is only a promise of the product being sold. The planning of the workshop was initiated by the need of the product strategy for the new product. Moreover, at this point, the best way to start is to build the Value Proposition Canvas for the company.
The Value Proposition Canvas is also an important part of the Business Model Canvas that I create for the company. The workshop is based on the theory of The Value Proposition Canvas and it followed the path created by Osterwalder and Pigneur. The author of this thesis was the maintainer of the speech and ran the workshop.
The agreed time was sufficient to fill the Value Proposition Canvas and the conversation continued after the workshop in a lively and thoughtful manner.
Workshop results
The product is the same as the one offered to Customs because the company does not currently have another product in the pipeline. In summary, the company has a fantastic product under development, and it could become a massive success in the world. In my opinion, this study answered these questions well and the study will be used in the case company in the future.
The next crucial step for the case company is to have a private meeting with the two customer segments we created in the workshop and test the value model and customer profile with them. However, this was facilitated by the fact that the author was in the case in the company at work and the work went smoothly with the current affairs. A critical aspect of the research has been highlighted in the context of interviews and seminars related to obtaining information.
In the future, how the business models contributed to the company's operations and product development should be considered in more detail. I believe that this thesis will be very useful in the case company and will be appreciated by the new general manager. I think it's great that the tools I've been working on will be used in the company and my work has been useful to them.
