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  WHAT IS BUSINESS MODEL?

 The business are basically capable to:-

1- Generate income and profits

2- Business Sustainability
3- With limited resources

2017 Business
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 TYPICAL BUSINESS MODEL

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 Customer Segments

“GAIN” Primary

“PAIN”

“JOB FUNCTIONS”

Secondary

• Who are the customers?

• For whom are we creating value?
• Who are our most important customers?
Mass Market Niche Market Segmented Market

2017 Business
Diversified Market
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Multi-sided
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 Customer Segments
 What is the market segment? B2B/B2C/Both?
 What is the market size and opportunity?
 Who are your primary and secondary target customer?
(According to Value Proposition)
 Do you have the demography of your customer?
 The Psychographic of the segment?

Mass market
 Niche market
Segmented
Diversified
Multi-Sided
 Value Propositions
Newness
Performance
Customization “GAIN CREATORS”

Price
“PAIN RELIEVER”
Design
“PRODUCTS & SERVICES”
Brand/Status
Cost Reduction
Risk Reduction
Accessibility
Convenience
Usability
Getting the job done

• What value do we deliver to the customer?

• Which one of our customer’s problems are we helping to solve?
• Which customers needs are we satisfying?
• What
2017bundles of products
Business and
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: CENTRE FOR are we
ENTREPRENEUR offering
DEVELOPMENT to
AND each Customer
RESEARCH SDN. BHD. Segment?
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 Value Propositions
What value/benefit do we deliver to the customer
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer
Segment?
Which customer needs are we satisfying?
Why customer choose you instead of your competitor.

CHARACTERISTICS :
Design
Features
Warranty
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
 Channels

• Through which Channels do our Customer Segments want to be reached?

• How are we reaching them now?
• How are our channels integrated?
• Which ones work best?
• Which ones are most cost-efficient?
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How are we Business them
integrating with: CENTRE
customer routines?
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 Channels
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?

CHANNEL PHASES:
Awareness
How do we raise awareness about our company’s products?
Evaluation
How do we help customers evaluate our Value Proposition?
Purchase
How do we allow customers to purchase specific products?
Delivery
How do we deliver a Value Proposition to customers?
After sales
How do we provide post-purchase customer support?
 Channels (cont’d)

Channel Types Channel Phases

Direct

Sales force 1. Awareness 2. Evaluation 3. Purchase 4. Delivery 5. After sales

Web sales How do we raise How do we help How do we How do we How do we
awareness about customers allow deliver a Value provide post-
Own stores our company’s evaluate our customers to proposition to purchase
Indirect

products & organization’s

Partner stores purchase customers? customer
services? value proposition
specific support?
products &
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services
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 Customer Relationships
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation

• What type of relationship does each of our Customer Segments expect us

to establish and maintain with them?
• Which ones have we established?
• How costly are they?
• How
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with
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ENTREPRENEUR business
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Customer Relationships
What type of relationship does each of our
Customer Segments expect us to establish and
maintain with them?
 Which ones have we established?
How are they integrated with the rest of our
business model?
 Customer Relationship

How does the customer interact with you?

Can the Value proposition be delivered to customers?
Why there is a need to pay attention in customer service level? (Customers not a
robot).
Different strategy across segment?
How do you manage/addressed customer’s issues?
What makes customer repeat in buying?
What makes a loyal customer?
What makes customer like and trust you?
What makes customer emotionally attracted to your offering?
 Revenue Streams
Asset sale
Usage fees
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
• For what value are our customers really willing to pay?
• For what do they currently pay?
• How are they currently paying?
• How would they prefer to pay?
• How much does each Revenue Stream contribute to overall revenues?

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 Revenue Streams
For
what value are our customers really willing to pay
 For what do they currently pay
How are they currently paying
How would they prefer to pay
How much does each Revenue Stream contribute to overall
revenues
TYPES:
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
 Key Resources
Physical
Intellectual
Human
Financial

• What Key Resources do our Value Propositions require?

• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?

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Key Resources
 Key Activities

Production
Problem Solving
Platform
Network

• What Key Activities do our Value Propositions require?

• Our Distribution Channels?
• Customer Relationships?
• Revenue Streams?
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Key Activities
 Key Partnerships
• Optimization and economy of scale
• Reduction of risks and uncertainty
• Acquisition of particular resources and
activities

• Who are our Key Partners?

• Who are our key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?

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 Key Partnerships
MOTIVATIONS FOR PARTNERSHIPS:
 Optimization and economy
 Reduction of risk and uncertainty
 Acquisition of particular resources and activities
 Cost Structure

• What are the most important costs inherent in our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
Cost-driven Fixed costs Economies of scale

Value-driven
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Variable costs Economies of Scope
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 Cost Structure
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?

IS YOUR BUSINESS MORE:

Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)

SAMPLE CHARACTERISTICS:
Fixed Costs (salaries, rents, utilities).
Variable costs (working capital).
Capital Expenditure
Economies of scale
Economies of scope
 Key Partners Key Activities Value Propositions Customer Customer Segments
Relationships

•Who would you be •What kind of marketing •What “GAIN” can you •How can you build liking
associating with to make activities do you want to create for your customers? and trust? •Who are you targeting?
your marketing activities carry out to achieve your •What “PAIN” can you help •Would you be using •Any idea how big is the
more effective and objectives? relieve your target clients intermediaries to do so? market size?
efficient? • Collaterals from? •Where are they located
•Who would you be • Campaign •What kind of mostly?
partnering with to • Talks products/services you want •What do they need/want?
strengthen your position in • Ads to promote first and next? •What are their interest
the marketplace? • Promotion and persona
• Etc.
• NGOs •“GAIN”
• Associations •“PAIN”
• Vendors •“JOB FUNCTIONS”
• Manufacturers Key Resources Channels
• Media players
DEMOGRAPHY
• Celebrities •What kind of resources do
• Dignitaries you need to carry out your •How best can you reach PSYCHOGRAPHY
• Etc. marketing activities? out to them?
• Money •In what way can you
• Man communicate with them?
• Machine • Deliverable of your
• etc. offerings?

Cost Structure Revenue Streams – Expected Returns

•What sort of investment are you going to allocate? •What tangible or intangible returns would you expect from your
•Where will you get the money from? marketing investments?
•Can you obtain in kind contribution to aid your activities? •
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2017 Business
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2 Minutes

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Business Pitching
Business Pitching
 Quality, Price, Process, Capability, Sales/Services

SWOT

Economy, Political, Trending, Lifestyle, Social, Culture, Technology

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 SWOT

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