Most entrepreneurs building a business want ‘Customer Advantage’ and based on this, there is the need for exploring and establishing the right business model.
The second episode of the Masterclass series focused on The Power of a Business Model with our facilitator, Thompson Tsuwa.
Business models aim to translate one’s purpose into daily business operations that lead to real value creation for customers hence, a solid business model is pivotal to achieving ‘customer advantage’.
Having the right business model is critical to you winning with the customer. Osterwalder & Pigneur reduced the business model into 9 basic building blocks which show how any business, creates, delivers and captures value.
The blocks are:
- Customer Segments: Business models are created for those you want to serve – your ideal customers.
- Value Propositions Your business’ specific product and/or services mix that delivers value in a way others can’t
- Channels: How your business intend to communicate with & deliver value to its ideal customer.
- Customer Relationships: Speaks about the kind of relationships a company has with its customers.
- Revenue Streams
- Key Resources: Important assets without which your business model is just a dream.
- Key Activities: High impact tasks that a company executes regularly for its business model to work. • E.g. Juice producer – distribution.
- Key Partners This block speaks to key suppliers & partners. Without these, the business model will collapse
- Cost Structure: Captures all costs your business incurs as it operates the business model.
All these building blocks come together to form the Business Model Canvas and any business leader can sketch out his/her business using it.
The business model canvas is a tool that can help you revitalize your business for sustainable growth. The business model of today cannot deal with the turbulent environment of tomorrow so business model innovation is always required.
Incremental business model changes stemming from performance reviews build capabilities for future turbulence.
Changes made after future turbulence hits a business tend to be reactive, big and harder to accommodate by employees and that’s why many change projects fail and at times the business itself .
Click here to listen to program for more don’t forget to tune in to the Masterclass every Wednesday at 2:05 pm on your superstation Joy 99.7 FM for more of this.