Business Model Canvas Introduction

1. Business Mode
Canvas
Mohamed Sami
1
From Idea to Model

2. About me
Mohamed
Sami
Enterprise architect and software engineer. Mohamed Sami has more than 13 years of
professional experience and was involved in more than 40 governmental projects with different
roles and responsibilities for execution and management of projects and drafting of the
conceptual architecture and detailed designs for different national solutions. Moreover,
Mohamed contributed to different digital strategies in the government sector, which enriched
his business and technical skills over the past years.
Mohamed Sami is a value-driven individual, one of his personal goals, is how to become more
valuable to society from his career and creating a conscious business. Through Mohamed’s
career journey, he worked with a lot of vendors in Information technology and services industry
from consulting companies, IT and services companies, infrastructure-focused companies and
International vendors.
Mohamed Sami has a comprehensive business and technical skills and expert in Software
Engineering, business process, technology management, requirements engineering and
management, program and project management, software development life cycles, web
technologies and Agile development.
Mohamed received his bachelor degree in systems and biomedical engineering from Cairo
University in 2006 before receiving the master degree in software engineering in 2014 from Nile
University. Mohamed is self-learning who always wants to learn new technologies, tools, and
improves his skills. Mohamed is contributing some of his time as a mentor and a beta tester in
Coursera platform.
He is authoring of his personal blog to share software engineering practices which have a lot of
visits worldwide. He is passionate about technology, innovations, new business ideas, business
strategies and information management.
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https://melsatar.blog/

3. Why do we need a
business model?
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4. The Business Model Canvas
What is a business model? What is the purpose of the business model canvas?
A Business Model
describes…
the rationale of how an organization
creates, delivers, and captures value.
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5. The Business Model Canvas
From Idea to Business Model
Why this idea, what is the
business value, who are
the customer
Select the idea
Present why, how, what,
who, where, when
Tell the story
Place your idea into BMC
Model 9 blocks
Build the model
Ready to have it in action
Business
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The Nine Building Blocks
Key
Partners
Key
Activities
Value
Proposition
Customer
Relationships
Customer
Segments
Key
Resources
Channels
Cost Structure Revenue Streams
Who are our
customers?
What is the value
we need to
deliver?
How we can deliver
the value and
communicate with
customers?
The expected
relationship for our
customers?
What are the
sources of the
revenue?
What are the
resources required
to deliver the
value?
What we do in
order to deliver this
value?
Do we need
partners to be able
to deliver the value
to our customers?
What are the cost to
build and operate our
business?

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Let us take one by one
Strategyzer: Getting From Business Idea to Business Model
Getting From Business Idea to Business
Model Video

8. Start now
Write your project idea, the drivers to have this idea
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Customer Segments
The different groups of people you aim to reach and serve. It is the heart of the business model
Customers are grouped into segments based on
common needs, problems, or behaviors. large group with broadly
similar needs
E.g. All population
Mass Market
A specific group with very
specific needs.
E.g. Bloggers
Niche Market
Groups with slightly different
needs.
E.g. Technology Bloggers,
Health bloggers
Segmented
Steps:
• List all of your target potential customers
segments
• Choose one or two that you can start with
• Focus on those customers concerns and needs
• Profile them and make personas

10. Who are
Customers?
Define what are your customer segments?
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Value Proposition
The Value Proposition is the reason why customers turn to one company over another
• The Value propositions is typically the benefits that a
company offers to their customers.
• Some may be innovative and represent a new or disruptive
offer.
• Some may be high quality service
• Some may be affordable cost
• Others may be similar to existing products and services but
with added features.
• Selecting the value must touch customer’s most critical pain
or need and how this value will satisfy this need and
eliminate this pain.
• Speed of service
• Pricing innovations and
competition
• Adding new features
E.g. Huawei, Carrefour
Quantitative
• Improve the customer
experience
• Improved emotional strategies
• Enhancing status
• Personalization
E.g. Apple, Uber, Netflix
Qualitative
• Disrupt an industry
through new product,
service, or industry
E.g. Tesla, iPhone, Xerox
Radical & Game -Changing

12. What is your idea
value proposition?
Try to list your idea benefits, and how they are related to the customer needs? Which category
your benefits fit in?
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Channels
How will we communicate with and reach the customers to deliver our value
Channels serve as touch points that determine the customer’s acknowledgment and
satisfaction.
Website Direct PartnersStores
& others
We establish channels for sales, marketing, communications, getting feedback, deliver value,
support, …etc.

14. What is your model
channels?
List how would you like to communicate with your customers?
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Customer Relationships
The relationship that each Customer Segment expect us to establish and maintain with them?
Customer relationships can range from highly personal to automated
• Personal Assistance
• Dedicated Personal Assistance
• Self-Service
• Co-Creation
• Communities
The drivers to establish the relationship:
• Acquire customers
• Retain customers
• Increase sales (upselling & cross selling)
Think about open source tools, the main customer relationship through community
knowledge, while for mobile operators through Personal assistance and self-services
Long Term
Deep relationship
E.g. Banks
Transactional
One time
E.g. Airports, Kiosks

16. Think about
relationships you
want to establish
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Revenue Streams
Customer Segments is the heart of a business model, the Revenue Streams are its arteries
How we get money as revenue to sustain our business?
Each Revenue Stream has a pricing mechanism such as fixed list pricing, discount pricing,
market dependent pricing, or volume dependent pricing
one-time customer payment
E.g. Buy book, computer, or
phone
Transactional
Ongoing payments
E.g. Subscription, Usage, renting,
Licenses
Recurring

18. Money $$$
List sources of revenues
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Key Resources
Key Resources to deliver the Value Proposition to the Customer Segments
What are the resources required to create, deliver, maintain, and improve the value?
The resources helps in creating the relationships, reaching the customers.
Intellectual
Property
brands, proprietary
knowledge, patents and
copyrights, partnerships, and
customer databases
Financial
cash, lines of credit,
or offering stock
options
Physical
Manufacturing facilities,
buildings, vehicles,
machines, systems, point-
of-sales systems, and
distribution networks
Human
Manpower of humans
that creates the
industry and
knowledge

20. What are the key
resources?
List your business resources categorized, that will help to identify their
cost
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Key Activities
What are the actions the company do to operate successfully. It is closely related to Key partnerships
In order to perform the
activities, you need the
resources, partnerships,
channels. The model is very
connected.
You need to think who will
perform these activities, how,
and why these activities are
important to your business

22. What are the main
activities you want
to perform?
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Key Partners
Your network of suppliers, partners, and strategic alliances
Strategic
partnerships
between
competitors
Joint Ventures to
develop new
businesses
Buyer-Supplier
Alliances to
assure reliable
supplies
Strategic
alliances
between non-
competitors
Focus on your business
activities and outsource what
partners can do.
E.g. home delivery can be
outsourced if you need to focus
on production and
manufacturing
E.g. outsourcing building
technological platform to
development company if it is
not your core competencies

24. Think about your
partnerships
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Cost Structure
All costs incurred to operate your business model
Cost-Driven
Minimizing costs wherever
possible
Value-Driven
Focus on value creation
regardless the cost
implications
It includes cost of:
• Resources
• Equipment
• Facilities
• Activities
• Platforms
• …
Economies of scale
Cost advantages that
a business enjoys as
its output expands
E.g. Cloud
Economies of scope
Cost advantages that a
business enjoys due to
a larger scope of
operations
E.g. Multi products
Fixed cost
Costs that remain the
same despite the
volume of goods or
services produced
E.g. Salaries,
facilities
Variable cost
Costs that vary
proportionally with
the volume of goods
or services produced
E.g. Events, Software
Development

26. What are the cost
sources for our
business?
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27. Let us have
an example
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Health Services Locator
The Business goals
• Provide excellent experience for people to locate the best and affordable health care
services
• Self-services for people with 0 cost to use
• Improve the health care services in Egypt
• Establish information base about the health service performance and coverage
The Business Drivers
• Poor health care services and high cost
• Scattered opinions and rating
• No industry standards for level of services versus cost
• The eco systems of health providers and health insurance

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Health
Services
Locator
Key Partners Key Activities Value Propositions Customer
Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams

30. References
[1] S. AG, "Strategyzer | Trusted by over 5 million business practitioners", Strategyzer.com.
[Online]. Available: https://www.strategyzer.com/. [Accessed: 22- Jun- 2019].
[2] "Ep 1 - Getting From Business Idea to Business Model", YouTube, 2013. [Online]. Available:
https://www.youtube.com/watch?v=wwShFsSFb-Y. [Accessed: 22- Jun- 2019].
[3] A. Cowan, "The 20 Minute Business Plan: Business Model Canvas Made Easy", Alex Cowan.
[Online]. Available: https://www.alexandercowan.com/business-model-canvas-templates.
[Accessed: 22- Jun- 2019].
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31. Mohamed Sami
THANK YOU.
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