Presentation by Fred Akintunwa

3. Introduction

4. How can I start a new business?
How can we re-evaluate and reposition our business after Covid-
19?
How do we align our strategy to become one of the best in our
sector?
How can we upscale our present business operations?
How can we pivot/transition into a new business?
How can I attract business funders/partners?
…….. need for strategy Management decision
Some Questions looking for solution….

5. What’s strategic management tools?
Strategic management is the ongoing planning,
monitoring, analysis and assessment of all necessities
an organization needs to meet its goals and
objectives.
The strategic management process has become more complex and
costly. Therefore, in order to assist strategic managers, a wide
variety of tools and techniques have been developed.

6. Most Strategic Management Tools

7. A business model is simply a plan describing how a business intends to
make money.
The business model canvas is a strategic management tool that lets you
describe, design, visualize, challenge, invent, pivot and assess your
business idea or concept. It’s a one-page document containing nine boxes
that represent different fundamental elements of a business.
What’s Business Model Canvas?

8. Building blocks of BMC

9. Customer Segments
The heart of any business model
Without profitable customer, business
can’t continue
Who are the customers? What do they
think? See? Feel? Do?
Segmenting your customers based on similarities such as
geographical area, gender, age, behaviours, interests, etc.
gives you the opportunity to better serve their needs,
specifically by customizing the solution you are providing
them.
After a thorough analysis of your customer segments, you can
determine who you should serve and ignore. Then create
customer personas for each of the selected customer
segments.

10. Customer Persona Template

11. Clarity
Clarify who you are selling to, and it will
become much easier to refine your sales
approach.
Mass market
Niche market
Segmented
Diversified
Multi-sided markets

12. What’s compelling about the proposition? Why do customers buy,
use your products?
Value Propositions
This is the building block that is at the
heart of the BMC. And it represents
your unique solution (product or
service) for a problem faced by a
customer segment, or that creates
value for the customer segment.

13. A value proposition should be unique or should be different
from that of your competitors. If you are offering a new
product, it should be innovative and disruptive. And if you
are offering a product that already exists in the market, it
should stand out with new features and attributes.
Value propositions can be either quantitative (price and
speed of service) or qualitative (customer experience or
design).

14. How are these propositions promoted, sold and delivered?
Why? Is it working?
Channels
Value propositions are
delivered to customers
through
communication,
distribution, and sales
Channels

15. Channels play a role in raising awareness of your product or
service among customers and delivering your value
propositions to them.
There are two types of channels
Owned channels: company website, social media sites, in-
house sales, etc.
Partner channels: partner-owned websites, wholesale
distribution, retail, etc.

16. Driven by the following motivation: Customer acquisition, retention
Boosting sales (Self service, personal assistance, automated, chat,
communities
Customer Relationships
How do you interact
with the customer
through their
‘journey’?

17. Personal assistance
Dedicated personal assistance
Self-service
Automated services
Online Communities
Co-creation
Types of Relationships

18. How does the business earn revenue from the value propositions?
Revenue Streams
Customers are the heart
of business and Revenue
is the arteries
Revenue streams result from value propositions successfully
offered to customers

19. A revenue stream can belong to one of the following revenue models
Transaction-based revenue: made from customers who make a one-time
payment
Recurring revenue: made from ongoing payments for continuing services or
post-sale services
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would the prefer to pay?
How much does each revenue stream contribute to overall
revenue?

20. Asset sales: by selling the rights of ownership for a product to a buyer
Usage fee: by charging the customer for the use of its product or service
Subscription fee: by charging the customer for using its product regularly
and consistently
Lending/ leasing/ renting: the customer pays to get exclusive rights to use
an asset for a fixed period of time
Licensing: customer pays to get permission to use the company’s
intellectual property
Brokerage fees: revenue generated by acting as an intermediary between
two or more parties
Ways of Revenue generation

21. Key Activities
The most important
activities/actions a
company must do to
operate successfully.
What are the activities/ tasks that need to be completed to fulfill
your business purpose?

22. Categories of key activities
•Production: designing, manufacturing and delivering a product in
significant quantities and/ or of superior quality.
•Problem-solving: finding new solutions to individual problems
faced by customers.
•Platform/ network: Creating and maintaining platforms. For
example, Microsoft provides a reliable operating system to support
third-party software products.

23. What uniquely strategic things does the business do to deliver its
proposition?
Physical, Human, intelligent, financial
Key Resources
Key Resources are the assets
required to make business
model work
The main inputs you need to
carry out your key activities in
order to create your value
proposition.

24. •Human (employees)
•Financial (cash, lines of credit, etc.)
•Intellectual (brand, patents, IP, copyright)
•Physical (equipment, inventory, buildings)
Types key resources

25. Who are the key partners? Who are the key suppliers? Which key
resources are we acquiring from the partners? Which activities do the
partners performs?
Key Partners
Key partners are the external companies or suppliers that will
help you carry out your key activities. These partnerships are
forged in order to reduce risks and acquire resources.

26. •Strategic alliance: partnership between non-competitors
•Coopetition: strategic partnership between partners
(cooperative competition )
•Joint ventures: partners developing a new business
•Buyer-supplier relationships: ensure reliable supplies
Types of Partnership

27. What are the business’ major cost drivers? How are they linked to
revenue? (Fixed, Variable, Economics of scale and scope)
Cost Structures

28. • Strategic Planning/Development
• Dashboard
• Understanding Competition
• Portfolio of Business models
• Design, test, and build new growth engines
• New idea template
• Understanding customers
• Shared language across functions
• Investment decisions
Purpose of BMC