Business Model Canvas, Market Analysis, and Innovation Strategies

Posted on Jan 6, 2025 in Business Administration and Management (BAM)

Business Model Canvas

The Business Model Canvas includes the following key elements:

  1. Value Proposition: What you offer.
  2. Customer Segments: Who will buy your product.
  3. Channels: How clients access your product.
  4. Customer Relationships: How you relate with clients.
  5. Revenue Streams: How money comes into the business.
  6. Key Activities: Things you do very well.
  7. Key Resources: What you invest in to grow.
  8. Key Partners: Who you partner with for a great business model.
  9. Cost Structure: Your costs.

Business Model Questions

  • What channels do companies use?
  • How do companies create customer engagement?
  • What do they invest in (key resources)?
  • What do they do with perfection (key activities)?

Smoke Test

Used to gauge market interest before building a product. For example, before developing the Cybertruck, make real prototypes to examine the client experience.

Market Analysis

  • TAM (Total Addressable Market): All that your sector has.
  • SOM (Serviceable Obtainable Market): The share you want to cover.

Start-up

A technological company looking for an efficient business model.

Impact on the P&L

Do we increase revenue? Or do we reduce costs? Both are innovation. Focus on revenue.

Business Strategy

All decisions made to achieve your company’s goals. When you kill a category or a product, it’s a clear innovation. Example: the iPhone and digital cameras.

Ways to Know Market Dimension

  1. Passport by Euromonitor.
  2. Sector reports by McKinsey or IBIS World.
  3. Sabi.
  4. Estimations.

(Knowing market size helps in assessing growth potential)

How Companies Generate Ideas for Innovation

  • Using a core asset or competence.
  • Capturing an unmet need.
  • Questioning an orthodoxy.
  • Understanding a systematic change.

7 Stages in the Evolution of Innovation

  1. Technical Rush (1840).
  2. Market pull (1920).
  3. Whole company is an innovation system.
  4. Involve the supply chain.
  5. Open Innovation paradigm.
  6. Local/Regional Innovation ecosystems.
  7. The age of geopolitics in innovation.

CEO, Business Model, and KPIs

The job of a CEO in business models is to manage the business model for maximum efficiency, keep an eye on external factors, and manage adaptability. KPIs (Key Performance Indicators) help manage these external factors.