BMC/LC

Chapter/Unit

Business Plan & Pitching

The innovative tool, the Business Model Canvas, is a structured
framework designed to facilitate organizational alignment among
various stakeholders, including executives, advisors, and business owners.

Dutchy A. Dohinog, MIT

 BUSINESS
MODEL
CANVAS
PART 01

01
 What is BMC?
The Business Model Canvas, developed by
Why is it important?
• It helps companies visualize Alexander Osterwalder, is a visual representation
and position their business of current or new business models, generally
models for growth and used by strategic managers.
innovation.
• It helps communicate to The Canvas provides a holistic view of
clients why they should do
the business as a whole and is
business with you.
• It helps pull into focus what especially useful in running a
your business does and comparative analysis on the impact of
how it will continue to do it an increase in investment may have
- successfully - into the on any of the contributing factors.
future.
Using a tool like the Business Model
Canvas can serve to unite your
company under a clear visualization of
where your organization sits today and
where it can be tomorrow
Nine (9) Elements of
Business Model Canvas
Proposed by Alexander Osterwalder.

1.Customer Segments
2.Value Proposition
3.Channels
4.Customer Relationships
5.Revenue Streams
6.Key Activities
7.Key Resources
8.Key Partnership
9.Cost Structure
 a. Segment Dimensions - single or multi-sided
market. example CNN
b. Segment Composition - visualize your
customer types as Personas as for an instance.
c. Problems, needs, habits and current
Customer Segment alternatives - know whta your customer need at
the same tyime identify several alternatives
is the practice of dividing a customer base into
groups of individuals that have similar
characteristics relevant to marketing, such as
age, gender, interests and spending habits.

a. Segment Dimensions
b. Segment Composition
c. Problems, Needs, Habits
and Current Alternatives
 Nine Common
Value Proposition Value Proposition
are:
is a simple statement that summarizes why
a customer would choose your product or 1. newness
service.
Value Proposition refers to the value a 2. high
company promises to deliver to
customers should they choose to buy
performance
their products. 3. ability to
sustomize
4. design
5. brand/status
6. price
7. cost reduction
8. risk reduction
9. convenience
Integrate the value proposition
Alexander Osterwalder and Yves Pigneur developed the
Value Proposition Canvas to complement the Business Model
Canvas.
• One of the biggest problems when designing a
business model is creating value, and people often
struggle with this.
• The value proposition canvas is a transformative
approach to understanding value and designing
products or services that customers want.

35%
 Ways in
proprovide you with a clear process for identifying what a which the
customer is trying to achieve and how the experiences. value
1. Customer focus proposition
canvas will
the process of developing a value proposition forces you to help you to
prioritize what’s important to the customer and select value grow your
propositions that have the potential to motivate a customer to business:
take action.
2. Prioritizes value

value propositions are often relevant in certain situations and

not others. Value changes according to the customer, their
situation (e.g. location), why they are trying to get a job done.
3. Provides context

The process improves innovation outcomes and lowers failure

rates. It isn’t a magic bullet but it reduces the risks of innovating
based on ideas only.
4. Narrows the Gap
 FIVE TYPES OF CHANNEL PHASES:

AWARENESS- how do we raise

awareness about our company’s
products and services?

Channel
• Advertising (Word of Mouth,
Social Media, Newspaper, etc.)
EVALUATION- how do we help
The Channel Building Block describes how a company customers evaluate our
communicates with and reaches its Customer Segments to deliver organization’s Value Prop?
its Value Proposition. It is important to understand which pathway (or • Surveys
channel) is best for your company to reach your customers. Below is • Reviews
a brief description that will help guide you in finding the right mix of PURCHASE- how do we allow
channels to satisfy how customers want to be reached. customers to purchase specific
products and services?
• Web vs. Brick and Mortar
• Self Checkout
DELIVERY- how do we deliver a
Value Proposition to customers?
• Over the counter
• Delivered/Catered
AFTER SALES- how do we provide
post-purchase customer support?
• Call center
• Return policy
• Customer assistance
 Three Benefets of Cutomer Relationship

Customer
Customer retention
• Satisfied customers make repeat
purchases and recommend your

Relationship
products to their friends and family.
That’s invaluable free advertising and
passive income from simply creating a
positive customer experience. A study
refers to the methods, strategies, and by Bain & Company found that a five
percent increase in customer retention
processes a company uses to build and can yield a 25 percent increase in profit,
maintain customer relationships. at a minimum.
Customer loyalty
• When you have a great relationship with
your customers, it’s unlikely that they’ll
leave you for a competitor, even if they
can get a better price. According to our
CX Trends Report, 70 percent of
customers said they base purchase
decisions on customer service quality.
These intangible incentives created by
strong customer relations drive customer
loyalty.
Customer Satisfaction
• A measurement that determines how
happy customers are with a company's
products, services, and capabilities.
Cust o m e r s a t i s f a c t i o n i n f o r m a t i o n ,
including surveys and ratings, can help a
company determine how to best
improve or changes its products and
services.
 Different Ways to Generate Revenue Streams

Asset sale: It is the most common source of income,

Revenue Stream
the result of the sale of a physical product, which
belongs to the customer;
Usage fee: This revenue stream contemplates the
Revenue streams are the various sources through which a frequency of use of a particular service. The higher
business earns income. At their core, a revenue stream t h e u s e , t h e g r e at e r t h e a m o u n t p a i d b y t h e
represents how a company generates money from its customer. This is what happens with the minutes of a
telephone company or with the fees of a hotel, for
customers or clients.
example;
Subscription fee: This revenue stream corresponds to
the sale of continuous access to a particular service.
It is the model of the monthly payment of a gym or of
the license of access to a news site, for example;
Lending, renting, or leasing: For this revenue stream,
the client has the right to temporary access to a
particular resource for a certain period of time;
Licensing: Customers here can use protected, for-
profit intellectual property by paying a fee. It is quite
common in the areas of media and technology;
Brokerage fee: This revenue stream provides a
percentage of the value of a service executed
through intermediation between the parties. This is
the case with insurance brokers or real estate brokers,
as well as credit card operators, who receive a
commission on the transactions they intermediate;
Advertising: As the name says, this is an
advertisement-based revenue stream that involves
advertising a brand, product, or service. It is fairly
common in media, events, software, and apps.
 Finding the Key Activities
To find your key activity the best place
to start is your value proposition

Key Activities
• What’s are the most important
actions to build your product or
service?
are the key things that you need to do in order to deliver
your value propositions to customers. • What’s most important to distribute
your product and service?

• What kinds of activities are

important if we want to maintain
customer relationships? (Personal
Service, Your Office, Sharing
Experience etc..)

• What kinds of activities are

fundamental to your revenue
streams? (Credit Limit, Fast Payment,
Trust etc..)
What Key Activities Do Your Value
Proposition(s) Require?

First of all look at your value proposition. What are the key things that you need
to do to make it work? If you have a florist you need to

• buy the flowers,

• prepare them and
• deliver them

You also need to manage your promotional channels so that

customers come to the shop.
Functions in R&D
01 New Product Research

02 New Product Development

03 Existing Product Update Description

Research and Developement refers to the
sy ste m a t i c p r o c e s s o f i n v e s t i g a t i n g ,
experimenting, and innovating to create
new products, processes, or technologies.
04 Quality Checks

05 Innovation
 Product
01 Selection of product and design

02 Selection of product process A product is the item offered for

sale. A product can be a service
or an item. It can be physical or
03 Selecting right product capacity in virtual or cyber form.

04 Product Planning Description

Product management is the
practice of strategically driving the
05 Product Control development, market launch, and
continual support and improvement
of a company's products.
06 Quality and cost Control
Every product is made at a cost
and each is sold at a price. The
07 Inventory control price that can be charged
depends on the market, the
quality, the marketing and the
segment that is targeted.
08 Maintaining and Replacement of
Machines
Marketing
Function of marketing department
“Marketing is the management process
01 Strategy responsible for identifying, anticipating
and satisfying customer requirements
profitably.”
02 Market Research
Description
03 Product Development Market Department is responsible for
the growth of the company y
getting word of the companys
existence and the value it provide
04 Communications to its customers.

Fundamentally, marketing is about

05 Sales Support understanding who your customers are, what
they need and what they value. Identifying
your customers’ needs and working out how
your business can fulfil those needs is the role
06 Events of marketing – so you can see why it’s key to
the success of any business. With no customers,
you have no business.
 Sales & Customer Services Sales professionals are driven to close deals,
while customer service reps focus more on aiding
customers through their journey, ensuring they
utilize the product or service to its full potential.
Handling the customer experience:
Customer service and sales roles are the
01 Handling problems lifeblood of any organisation. In fact, they are
often referred to as the ‘face’ or ‘voice’ of the
business. These roles bridge the gap between
the company and its customers, nurturing
relationships and fostering trust

Description
02 Assisting in sales
Customer ser vice professionals
handle client inquiries, resolve issues,
provide information about products
and services, and ensure overall
customer satisfaction.

03 Clerical tasks
They use various communication
channels, such as telephone, email,
chat, social media, and face-to-face
interactions
Key Resources Types of
are the main inputs that your company uses to create its
value propopsitions, service its cutomer segment and
Key Resources
deliver the product to the customer.
1. Physical Resources
2. Intellectual Resources
3. Huan resources
4. Financial Resources
 Four Types of
Key Partnership Partnership
are the network of suppliers and partners that make the
business model work.
1. Strategic illiances
between non-
competitors
2. Coopetition
3. Joint ventures to
develop new businesses
4. Buyer supplier
relationships
Cost structure
is the aggregate of the various types of costs, fixed and Four Types of
Partnership
variable, that make up a business' overall expenses.
Companies use cost structure to set pricing and identify
areas where expenses can be reduced.
1. Strategic illiances
between non-
competitors
2. Coopetition
3. Joint ventures to
develop new businesses
4. Buyer supplier
relationships
CASE STUDIES
The Smart Communication Network focused on enabling connectivity and data
exchange for smart cities. This service could be provided by a telecom company
or tech startup that aims to establish IoT (Internet of Things) infrastructure to
support data-driven city management, including traffic control, public safety, and
energy efficiency.

Key Key Value Customer Customer

Partners Activities Proportions Relationship Segments
What key activities do our value What value do we deliver to the What type of relationship does For whom are we creating value? Who
Who are our key partners? propositions require? customer? each of our customer segments are our most important customers?
Who are our key suppliers? Our distribution channels? Which one of our customer’s problems expect us to establish and
Which key resources are we acquiring for them? Customer relationships? Revenue are we helping to solve? maintain with them? • Municipal Governments
streams? What bundles of products and services Which ones have we established? • Public Safety Agencies
Network Installation are we offering to each customer Account Managers Transportation Authorities
Telecom Providers
• • •
• • Maintenance and Technical segment? • Customized Solutions and • Utility Providers
• IoT Device Manufacturers •
Support
Research and Development
Which customer needs are we
satisfying? •
Implementation Plans
Training and Onboarding
• Businesses

• Local Governments and • Customer Training and Programs

Consultation Support team
Municipal Agencies
•
• Data Collection and Analysis • Reliable, High-Speed Connectivity
• Academic and Research • Real-Time Data Monitoring and
Analysis
Institutions • Cost-Effective Urban Management • Sales and Account Management
Enhanced Public Safety Teams
Technology Partners
•
• Scalable Network Solutions Website and Online Platforms
Key Resources Channels
• •
• Industry Conferences and Trade
What key resources do our value Through which channels do our Shows
propositions require? customer segments want to be • Consultation and Partnership
reached? Networks
• Network Engineers and How are we reaching them now?
Technicians How are our channels integrated?
• Partnerships with IoT and Which ones work best? Which ones
Hardware Providers are most cost-efficient? How are
• Software and Data Analytics we integrating them with
Tools customer routines?
• data center

Cost Structure Revenue Streams

What are the most important costs inherent in our business model? For what value are our customers really willing to pay? For what do they currently pay? How are they
Which key resources are the most expensive? Which key activities are the most expensive? Infrastructure currently paying? How would they prefer to pay? How much does each revenue stream contribute to
and Hardware Costs ,Software Development and Licensing:Personnel Costs:Marketing and Sales and r&D overall revenues? Service Fees,Installation and Setup Fees:Consulting Fees Data Analytics Services
Types of Partnership
Partners may contribute capital, labor, skills, and experience to the business. They may have unlimited legal liability for the
actions of the partnership and its partners.

• Sole proprietorship
• General partnership
• Limited partnership
• Corporation
• (C-corporation or S-corporation)
Sole Partnership When a business is operated as a sole proprietorship in the
United States, essetially all income generated through the
business is self-employment income and subject to a self-
• A sole proprietorship is created by default any time an employment tax.
individual owns a business without going through the The primary and significant downside of a sole proprietorship
specific formalities required to create a statutory is that it is an unlimited liability entity—its owner is personally
responsible for all the business liabilities.
entity. Why would anyone operate a business as a sole
• A sole proprietorship can operate under the individual proprietorship?
owner’s name or under a fictitious name. Most of the time, the unfortunate answer is simple of the
unlimited liability. Someone might choose to operate as a
sole proprietorship because of the relative ease of, and lack
of expenses entailed in, establishing the business.

A proprietor is personally
responsible for the debts and
obligations of the business, as
well as for the actions of
employees.
General Partnership • A general partner’s liability is not limited to
that partner’s percentage of ownership.
• In more legal terms, each general partner is
• A general partnership is a business arrangement in jointly and severally liable for the debts and
which two or more business partners co-own a obligations of the partnership.
business and are equally responsible for its running, • This means that each partner could be held
profits, debts, liabilities, and assets. personally liable for the entire amount of the
partnership debt and obligations,
irrespective of their proportionate ownership
in the venture, and all of their personal assets
are at risk to satisfy those obligations.

For liability purpo se s, a ge ne ra l

partnership is considered the alter
ego of each of the partners. Any
general partner can bind the
business to an agreement, and
each partner is liable for the acts of
the others, as well as employees.
Limited Partnership
• Limited partnership (LP) is a type of partnership
organization that limits the personal liability of some
partners. In general partnerships, every partner
remains personally liable for the debts and obligations
of the partnership.

The limited partners are,

essentially, passive investors.
Corporation • A corporation is managed by a board of directors and
various officers who are selected and serve at the
pleasure of the board.
• A corporation is a legal entity, created under the laws • Officers are responsible for the day_x0002_to-day
of a particular jurisdiction (typically under state law in operation of the venture, while the board of directors
has fiduciary responsibility to the owners (shareholders)
the United States), separate and apart from its owners. of the venture.
• The word “corporation” is derived from the Latin • Equity interests in a corporation are managed and
corparæ, which means to make corporal, or tracked through the distribution of stock or shares.
• There are typically written stock certificates representing
physically embody. the interests of the various owners.
• Not surprisingly, the owners of a corporation are referred
to as shareholders, or stockholders.
• A corporation is a limited liability entity—shareholders
are liable only to the extent that they can lose the value
of their shares.

Shareholders typically share in the

continuing operation of a corporation
through dividends or distributions—
monies paid to shareholders out of the
corporation’s profits or reserves.
Dividends should be distinguished from
payments for goods or services, such
as salaries paid to employees.
Lean Canvas
The Lean Canvas is a modified
version of the classic business
model canvas that is designed to
maximize user value by combining
a strategy.
Three elements are the building
blocks of the Lean methodology:
• Focus on value to the customer
• Eliminate things that don’t
directly provide value (aka
waste)
• Iterate with cyclical
improvements
 1. Problem: This section outlines the specific problem or
pain point that your product or service aims to solve.

2. Solution: Describe how your product or service addresses

the identified problem. This is usually a brief description of
the value proposition.

9 key
3. Key Metrics: Identify the key performance indicators
(KPIs) you will use to track your business’s success.

elements
4. Unique Value Proposition (UVP): Clearly states what
makes your product or service unique and why it’s better
than existing alternatives.

of lean
5. Channels: Outline the marketing and distribution
channels you plan to use to reach your target customers.

canvas
6. Customer Segments: Defines the specific groups or types
of customers your business is targeting.

7. Cost Structure: Lists the main costs associated with

running your business.

8. Revenue Streams: Describes how your business will make

money, including pricing strategies and revenue sources.

9. Unfair Advantage: Identifies any advantages or unique

factors that give your business a competitive edge.
 1. Problem: Many people struggle to stay
organized and manage their tasks efficiently.
2. Solution: A mobile app that provides a simple
and intuitive task management system.
3. Key Metrics: User engagement, daily active users,
retention rate.
4. UVP: Offers a unique combination of user-
friendly design and intelligent task prioritization.
5. Channels: App stores, social media advertising,
word-of-mouth referrals.
6. Customer Segments: Busy professionals, students,
Example : and freelancers.
7. Cost Structure: Development and maintenance
A Mobile App for costs, marketing expenses.
Task Management 8. Revenue Streams: Freemium model with a free
version and premium subscription options.
9. Unfair Advantage: Proprietary task prioritization
algorithm.
 Business innovation plans are a compilation of
documents that define a company's objectives
and the strategies and timeline for achieving those
goals.

BUSINESS These plans provide background

INNOVATION information about a company and its

financial projections.
PLAN
Companies often use them to
secure funding or establish a
partnership.
 Business plans provide direction to a company's
goals and serve as a guide to achieving these
goals. You can use them to attract investors, secure
loans and gain approval from partners or
shareholders.

Starting your own business, applying for a

BUSINESS
business loan, planning future strategies
or maintaining a company, a business
plan is a good document to help you set

PLAN out your business goals and how you

intend to achieve them.

It includes your business model,

marketing plans and financial
projections.
 1. Start-up business plan

2. Strategic business plan

TYPES OF
3. Operations business plan
BUSINESS
PLAN 4. Internal business plan

5. Growth business plan

 1. Promotes funding
2. Helps track progress
3. Increases accountability
4. Increases clarity
BENEFITS 5. Attract talents

OF 6. Improves your decision

making
BUSINESS 7. Promotes growth

PLAN 8. Builds confidence

9. Helps you analyse the
cash flow
 1. Research your
HOW TO industry
WRITE 2. Find the purpose
YOUR 3. Define your
BUSINESS business
PLAN 4. Write the plan
 1. executive summary

2. company description

3. products and services

4. market analysis
6 THE FF. DETAILS
TO TO START YOUR 5. sales and marketing strategy
BUSINESS PLAN:
6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
EXECUTIVE
SUMMARY 5. sales and marketing strategy

6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
COMPANY
DESCRIPTION 5. sales and marketing strategy

6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
PRODUCT AND
SERVICES 5. sales and marketing strategy

6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
MARKETING
ANALYSIS 5. sales and marketing strategy

6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
SALES AND
MARKETING 5. sales and marketing strategy

6. financial projections
 1. executive summary

2. company description

3. products and services

4. market analysis
FINANCIAL
PROJECTIONS 5. sales and marketing strategy

6. financial projections
Thank
You for your time!