130622_bmc thesis writing seminar-s.45

8/12/2019 130622_BMC Thesis Writing Seminar-s.45

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MM Thesis Briefing 13T2Business Model Creation

-School of Management-

Gerald Ariff

22nd

June 2013


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Osterwalder, Alexander & Pigneur, Yves (2010)Business Model Generation. John Wiley & Sons, Inc.,

Hoboken, New Jersey.

R&D (2013) S2 Thesis Guideline. Binus Business

School, Jakarta.

References


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Content Assessment

Business Model Business Model Canvas

Summary

Chapter Roadmap


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Content: Reference texts & Admin

Business Model Creation

Min Max "Set up new business" (in the market place or in a company)

Business Model creation:

Osterwalder, A. & Yves Pigner (2010). Business Model Generation. John

Wiley & Sons

Business Plan:

Barringer B.R and R. Duane Ireland. (2010). Entrepreneurship: Successfully

Launching New Ventures. 3rd Edition. Pearson.

Stutely, Richard (2007) The Definitive Business Plan: The fast track to

intelligent business planning for executives and entrepreneurs (2nd Edition).

1 Cover 2 2

2Statement of

originality1 1

3 Abstract 2 2

4 Abbrev & Acronyms 2 2

5 Table of Content 2 2

6 List of Tables 1 1

7 List of Figures 1 1

Standard Binus

No. ComponentNo. pages

0

Suggested Reference

books (include any other

text books relevant to

the topic)


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Content: Chapters 1 & 2



Background:

*Problem definition

*Urgency: Why the study should be done now ?

* Benefits: Whats the benefits of the study to the relevant stakeholders: Binus

Business School. Potential to be developed as future research journal or

academic case studies; Company/ Industry; Research authors;

Customer/Society [BMC thesis]

*Scope of the study: To l imit & highlight the focus of the analysis

*Business idea (can be a start-up or improvement /expansion

/transformation of an existing company /division)

*Overview of the thesis

Value Proposition (development & justification):

*Market & industry analysis

* Business Model canvas : overview & proposed.*Explain short theory of the business model & business model canvass.

*Propose the full blown business model: The whole dream and vision of the

business, with justification of each block

* Value proposition & idea generation

8 Chap1 10 20

9 Chap2 15 25



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Final Design of Business Model :

* Elaboration of business model canvass > 9 building blocks

* Strategy how to implement the building blocks

Business Plan:

*Org structure & profile of executives

*Technology plan,

*Market strategy: product/service development,*Financial plan,

*HR plan

* References in order to justify all of the plan (For example: populatio of

the target market, income data of the target market, rental rate, licencing

requirement for the plan, etc.)

*Location layout

*Timeline*Peer/substitute competitors survey analysis : 15

companies/service/product provider)

*Target customers survey result : 30 people

*Prototyping

10 Chap3 15 15

11 Chap4 35 35


Content: Chapters 3 & 4


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Content: Chapter 5, References & Appendix



Conclusion:

*Feasibility of the business model

*Business model limitation

*Future areas for further investigation

13 References 1 5 *Journals: min 10; white papers, books, articles

14 Appendix 1 15 Additional:figures, tables, trends, charts, Profiles of industry/company

Total 103 141

12 Chap5 15 15



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Summary sheet/Abstract page ?

Abbreviation table ?

List of tables, figures ?

Data: Need all data sources to define

Referencing: use APA. Need to make sure references match the

quotes in the content & in the ref list. Language: no slang

English language: italics

Numbers: no more than 3 digits; include currency (IDR, USD, Euro)

No ambiguous words like : etc, dsb,dll, lots, many, few. Figures, Tables and charts need to have: title, label for axis (y & z),

legend, source (name, year)

Assessments: Key questions - Formatting


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Literature review NO NOs:

- Wikipedia - Copy Pastes with no paraphrasing or

referencing

- Copy paste / translate whole chapters

with no real added value (then why dont

you just add the pages of the book/s

instead of doing this)

Marketing aspects

Promotion strategy: channel/media,

budget, regularity

Value Proposition: what's do different

about your product/service compared to

competitors' / substitutes' peers ?

Assessments: Key questionsLiterature, Marketing & HR

HR aspects: Where is the,

- Organisations structure ?(Management & operations

structure)

- Core staff competencies & high

level work descriptions ?

- Insource vs outsource staff ?


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If have a technology based business e.g. e-business,

- Technology selection. Why that technology was selected ? what it thetechnologys advantages vs other technologies ?

- What technology trends have you considered in your technology selection ?

- Will the technology be developed in-house, externally or combination of these

?

Who will, - develop the technology ? At what cost ?

- maintain the technology ? At what cost ?

Payment systems,

- Have you considered online or offline payment systems ? - Why did you select that payment system type ?

- What risks do you anticipate/mitigate ?

Assessments: Key questions - Technology


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Market segment :

- How big ?

- Based on what data (BPS, World

Bank) ?

Competing / Substitute

- Players ? - Geographic relatedness to

your business ? - Products or service

Timeline:

- Do you have a product/service road

map, expansion plan ?

- How will you anticipate copy cat of

your competitors ?

Assessments: Key questions - Strategy

Employee:

- Growth, key competences required or will

be built ?

- In or out source: why parts of the business

?

If you have delivery service,

- How far will the range be from yourlocation ?

- Who will deliver the product/service

(insource / outsource)?

- Why ? - At what cost (per delivery) ? -

Based on what ?

Analytical tools: Where are the,

- SWOT ? - PESTLE ? - Porters Five Forces ? -

Process flow (key processes) ?


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Assessments: Key questions - Financial

Assumptions: market, financial,

technology trends ?

Profit margin: How ?

Business Location selection: Why ?

- Where is the Tax component ?

- Why so much/little ?

If building/renovating the place: how did

you get the

- Renovation cost (IDR million/sq metre)

?

- Rental rate (IDR m/sq metre)

Licencing. If doing a restaurant or consumer

business,- have you considered government licence

to open such business ?

-Halal business. Have you considered the

requirements for such business (products,

service, facilities) ?

If importing/exporting business,

- Have you considered forex risk ?

- What assumptions do you have ?


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Is my firms current business modelcapable of delivering profits?

How will our business provide

customers with value & generaterevenues sufficient to cover costs &produce profits?

What resources are needed to delivervalue to customers?

Business Model: Key questions


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Serves as an ongoing extension of

feasibility analysis.

Allows top management to continually

asks the question, Does this business

make sense? Focuses attention on how all the

elements of a business fit together &

constitute a working whole.

Articulates a companys core logictoall stakeholders.

Business Model: Why it is important


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Best described via 9 (nine)

basic building blocks thatshow the logic of how a firm

intends to make money.

Covers 4 main business

area: Customers,

Offer,

Infrastructure, &

Financial viability

Describesthe rationale of

how a firm

creates, delivers& captures value

Business Model: Definition

Described in summary in a Business Model Canvas (BMC)


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C$ - Cost

Structure

KP Key

Partner-

ships

KA Key Activities

KR - Key

ResourcesR$ - Revenue

Streams

CR Customer

RelationshipsCS Customer

Segments

CH -

Channels

VP - Value

Propositions

Business Model Canvas: 9 Building Blocks

i d l d i


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Introduction:BMC

>>2mins Video


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Business Model Canvas: Key components

CS - Customer SegmentsVP - Value Proposition

CH - Channels

CR - Customer Relationships

R$ - Revenue Stream

KR - Key Resources

KA - Key Activities

KP - Key partnershipsC$ - Cost Structure

C t S t K ti


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CS - Customer

Segments

An organization serves one or several CustomerSegments.

Key questions:

For whom are we creating

value?

Who are our most

important customers?

Customer Segments: Key questions

C t S t D fi iti


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Defines different groups of people /

firms an firm aims to reach & serve

Customers comprise the heart of any

business model. With no (profitable)

customers, no firm can survive for long.

To better satisfy customers, may groupthem into distinct segments with

common needs, common behaviors, or

other attributes.

Different types of Customer Segments

e.g. Mass market, Niche market,

Segmented

Customer Segments: Definition

Value Proposition: Video


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ValueProposition:

Tuborg>>1mins Video


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VP Value

Propositions

Key questions:

What : a. Value do we deliver to thecustomer?; b. Bundles of products &

services are we offering to each Customer

Segment?

Which : a. One of our customers problems

are we helping to solve?; b. Customer needs

are we satisfying?

It seeks to solve customer problems & satisfycustomer needs with value propositions.

Value Proposition: Key questions

Value Proposition: Values & Elements


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Value for a Customer Segment via a

distinct mix of elements catering tothe segments needs.

Values may be: Quantitative (e.g.

price, speed of service) or Qualitative

(e.g. design, customer experience).

Elements that can contribute to

customer value creation e.g.

Newness, Performance,

Customization, Getting the job done,

Design, Brand/status, Price , Cost orRisk reduction, Accessibility,

Convenience/usability

Value Proposition: Values & Elements

Channels: Key questions


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CH - Channels

Value propositions are delivered to customers viacommunication, distribution & sales Channels.

Key questions:

Via which Channels do our CustomerSegments want to be reached?

How :

a. Are our competitors reaching them

now?; b. Do we make our Channels

integrated with customer routines ?Which channels are most cost-efficient?

Channels: Key questions

Channels: Communication & Distribution


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Describes how a firm communicates

with & reaches its CustomerSegments to deliver a Value

Proposition

Communication, distribution, & sales

Channels comprise a firm's interface

with customers.

Channels are customer touch points

that play an important role in the

customer experience.

5 (five) distinct phases: Awareness,Evaluation, Purchase, Delivery, After

sales

Channels: Communication & Distribution

Customer Relationship: Key questions


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CR - Customer

Relationships

Customer relationships are established & maintainedwith each Customer Segment.

Key questions:

What type of relationship does each of ourCustomer Segments expect us to establish &

maintain with them?

Which ones have we established?

How costly are they?

How are they integrated with the rest of

our business model?

Customer Relationship: Key questions

Customer Relationship: Types


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Describes the types of relationships a

firm establishes with specificCustomer Segments .

A firm should clarify the type of

relationship it wants to establish with

each Customer Segment.

Relationships can range from:

Personal, Communities to Automated

(e.g. Self-service).

Customer relationships may be driven

by the following motivations:Customer acquisition; Customer

retention; Boosting sales (upselling)

Customer Relationship: Types

Customer Relationships: Enterprise Rent-A-Car


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US biggest car rental firm

Target customer: not traditional customer segment (people who rent

cars at airport) but people who rent cars for whatever reasons e.g.

whose cars are being repaired, in accident.

Competitors: Avis, Hertz

Targets travellers Locates offices at airports;

Uses travel agents to promote

Biz model:

Has 2,400 offices within 15mins of 70% of US pop. Picks up customer at homes at no extra charge

Uses garage mechanics to promote service

Customer Relationships: Enterprise Rent A Car

Revenue Stream: Video


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Revenue Stream :IrnBru

>> 30 sec Video


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R$ - Revenue

Streams

Revenue streams result from value propositionssuccessfully offered to customers.

Key questions:

For what : a. Value are our targetcustomers really willing to pay?;

b. Do they currently pay?

How : a. Are they currentlypaying?

b. Would theypreferto pay?

How much does each Revenue Stream

contribute to overall revenues?

Revenue Stream: Key questions


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Revenue Stream: Walmart (1995 to 2006)


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( )

No. stores*

Key Resources: Video


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Key Resources: Telenordia

>> 42 sec Video


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KR Key

Resources

The assets required to offer & deliver thepreviously described elements . . .

Key questions:

What Key Resources are required to:Deliver our Value Propositions ?

Utilise our Distribution Channels?

Develop our Customer Relationships?

Generate our Revenue Streams?

Key Resources: Types


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Describes the most important assets

required to make a BM works Every BM requires Key Resources to :

create & offer a Value Proposition,

reach markets, maintain relationships

with customers, earn profits.

Differ depends on BM type.

Key resources can be:

a. Physical, Financial, Intellectual, or

Human;

b. Owned/leased by the firm oracquired from key partners.

Key Activities: Key questions


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KA Key

Activities

. . . by performing a number of Key Activities

Key questions:

What Key Activities are required to:Deliver our Value Propositions ?

Utilise our Distribution Channels?

Develop our Customer Relationships?

Generate our Revenue Streams?

Key Activities: Categories


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Describes the most important things

a firm must do to make its BM work Every BM calls for a no. of Key

Activities: the most important actions

a firm must take, to operate

successfully.

Differ depends on BM type.

Key activities categories:

a. Production

b. Problem solving

c. Platform/network

Key partnerships: Key questions


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KP - Key

Partnerships

Some activities are outsourced & some resourcesare acquired outside the enterprise

Key questions:

Who are our Key :

a. Partners?

b. Suppliers?

Which Key:

a. Resources are we acquiring from

partners?

b. Activities do partners perform?

Key partnerships: Network & alliances


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Describes network of suppliers &

partners that make the BM work Firms forge partnerships for many

reasons

Partnerships are becoming a

cornerstone of many businessmodels.

Firms create alliances to :

a. Optimize business models,

b. Reduce risk, orc. Acquire resources.

Cost structure: Key questions


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C$ - Cost

Structure

The business model elements result in the coststructure

Key questions:

What are the most important costs

inherent in our business model?

Which Key : a. Resources are most

expensive? b. Activities are most expensive?

Cost structure: Types


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Describes,

a. all costs incurred to operate a BM &b. the most important costs incurred

while operating under a particular BM.

All activities incur costs & can be

calculated after defining:

Key Resources,

Key Activities, &

Key Partnerships.

Some BM, are more cost-driven than

others. E.g. no frills airlines, built

BMs entirely around low Cost

Structures

Summary: Importance of Business Models


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Very useful for any firm to look at itself in a holisticmanner & understand that it must construct an effectivebusiness model to be successful.

Everyone that does business with a firm, from itscustomers to its partners, does so on a voluntary basis >>a firm must motivate its customers & its partners to playalong.

Close attention to each of the primary elements of afirms business model >> Especially essential for a new

ventures success.

Reference Theses: A & A-


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No NIM Name Title Grade

1140003121 PRAMITA WARDANI1140003494 HARIS SUHENDRA

1140003172 MARISA KARSEN

1140003203 DOMENICO DWIKADA WIRAWAN

1140003374 STEVEN MARTONO

1140000265 ARI PUTRI NAGARI

0700676144 PRADIPTA STHIRA

1140000151 YUSAR MAGABE SITOMPUL1140002781 RANGGA EKA SETIAWAN

1140003014 ANGGA RHEZA ARIYANTO

1140003310 RESTY SAGITA

1140002592 ABDUL FIRMAN

1140002610 BUDI SETIONO

1140002623 SRI MURNI

2 A-Doing Business In Effective & Efficient Way With

Using Smart Tap Technology

1 ABusiness Model Break Out Strategy ThroughOnline Learning For Professionals

4 A-

Pengembangan Model Bisnis Terhadap Usaha

Pembiakkan Kucing Persia Dan One-Stop-Solution

Pada "Virgiess Cat Garage"

3 A-Restaurant Reservation Management Solution &

Online Dining Reservation Service

5 ATransformation & Value Creation of the Health-

Care Service Industry In Indonesia

130622_bmc thesis writing seminar-s.45

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