Courseware: ES038-L01 Technopreneurship
Courseware: ES038-L01 Technopreneurship
Courseware: ES038-L01 Technopreneurship
COURSEWARE
ES038-L01
TECHNOPRENEURSHIP
WEEK 4: MAY 18-23, 2020
Prepared by:
Summer
Academic Year 2019-2020
ABOUT THE COURSE
Course / Section ES038 TECHNOPRENEURSHIP L01 Credit Units 3
Term Offered Summer 2020 Total Hours 54
Instructor Engr. KRISTAN IAN D. CABAŇA
Pre-Requisite/s ES034 ENGINEERING MANAGEMENT
Co-Requisite/s None
COURSE DESCRIPTION
CLO1: Evaluate and define the market needs and provide solutions to key problems
CLO2: Experience the entrepreneurial process from the generation of creative ideas
Explore the feasibility and creation of a business enterprise, and experience
CLO3:
the dynamics of participating on a business team
CLO4: Create and present a business plan for a technology idea
CL05: Develop creative idea into a real product
WEEK 4 TOPIC
bit.ly/IE-WeeklyDigitalLearningJournal
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PREFACE
Hello! I welcome you to this course of exploring your business
and techie mind using a wide range of tools.
By the end of this course, you’ll know how to test, validate and
prototype your idea, and also whether or not you fit the profile of
a technopreneur!
COURSE SYLLABUS:
https://bit.ly/TECCourseSyllabus
COURSE PLAN:
https://bit.ly/TECCoursePlan
COURSE LOCATOR:
https://bit.ly/ES038-L01-CourseLocator
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WEEK 4 TOPIC
MODULE 4: BUSINESS MODELLING
BUSINESS MODEL
I am pretty sure you have had quite a number of light bulb moments from last week's
module. You have come up with a great business idea and are ready to start a business.
Before you start a business, you need to create a business model. A business model is
the roadmap for the success of your business. And no, a business model is NOT a
business plan. A business plan can not even be made until you have created a "blueprint"
for your success with a business model.
I know this has all been confusing, but worry not, as we will be taking a closer look on
business modelling, the business model canvas and its components, and a complete
guide on how to create a business model canvas for your business idea.1
A simple way to think of what a business really is, is to think about it in three parts:
A business model helps you to clearly express how the pieces of your business
come together to create a product or service that customers will buy and enable
you to make a profit.
If you can’t describe your business model clearly and efficiently, you will have a lot of
problems that result in losing effort, time and money. Clearly describing your business
model to others, such as partners, investors, consulters, employees, etc., enables you to
share your knowledge and effort simply and completely.
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THE BUSINESS MODEL CANVAS
If you think about writing all the information about your business in a document, then it’s
obviously going to require multiple pages to capture all information. If you think about
trying to get all that information you’ve just captured into your brain and play with it, then
it’s a complicated and confusing task and it’s really easy to see why people get
overwhelmed when thinking about business models.
This is where the business model canvas comes in. It gives you a way to create a pretty
clear business model using just a single sheet of paper when you want to start your
business professionally. What is great about it is that it can be used to describe any
company from the largest company in the world to a startup.
With the Business Model Canvas, you can sketch out new business ideas or
visualize existing businesses.
1. Easy to understand
It can describe a business model in a single sheet of paper.
2. Focused
It removes all the unnecessary details that might have been present in a traditional
business model.
3. Flexible
It’s quick and easy to make changes to your model and sketch out new ideas.
4. Customer Focused
It forces you to think about the value you’re providing to your customers and only
then what it takes to deliver that value.
5. Shows Connections
The single page and graphical nature of the canvas shows how the different parts
of the model relate to each other. That’s something that’s hard to understand from
a traditional business plan.
6. Easy to Communicate
The canvas is so easy to understand, you’ll be able to share and explain it easily
with your team. Making it easier for them to get on board with your vision.
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The Canvas: Building Blocks3,4
The business model canvas consists of 9 blocks as shown in the image below. These
blocks are used to describe any company business model.
Before we go deeper into each of these elements, there is one thing you should be aware
of. We can say that elements on the left-hand side of the business model canvas
represent costs to the business. Similarly, elements on the right-hand side of the
canvas represent revenue for the business, or they generate revenue for the business.
1. Customer Segments
For example, Google serves two customer segments. It serves people who perform
searches, but it also serves advertisers.
2. Value Proposition
In the value propositions block, you will describe the group of products and services that
create value for your Customer Segment – what problems do you solve for each segment,
what needs do you satisfy. Value proposition answers the question, why will customers
buy from us.
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Common value propositions:
• Newness
• High performance
• Ability to customize
• Design
• Brand/Status
• Cost reduction
• Convenience
3. Channels
In this block, you will describe how your company communicates with customer
segments. How does the company reach its customers and deliver a value proposition?
Ask yourself, how do customers want to be reached or even how are you reaching them
right now. You can either have your own channels or you can partner with someone else
who has a channel. Your own channel includes any combination of things like stores you
own, a sales force you employ, or even your website.
Partner channels could include a multitude of options. For example, using a wholesaler,
maybe working with affiliates, or even using Google AdWords to advertise on Google.
4. Customer Relationships
The customer relationships block describes the strategies and tactics used to get, keep,
and grow customers.
Get: How do customers find out about you, and make their initial purchase decision? For
example, you could advertise through Facebook.
Keep: How do you keep customers once you’ve got them? For example, excellent
customer service might help you to keep your existing customers.
Grow: How do we get your customers to spend more. For example, you could set a
monthly newsletter strategy to keep them informed about your latest products or your
latest services.
Easiest way to define all this is to walk through the entire customer journey in detail. That
is to define how customers find out about you, how they decide whether to investigate
your product, how they buy your product, and then how they managed after they’ve made
the purchase.
5. Revenue Streams
In the revenue streams block, you will describe the cash a company generates from the
customer segment. Where does the money come from? What you’re actually trying to
figure out is what strategy you’ll use to capture the most value from your customers.
In a practical sense there’s a bunch of ways you could do this. Will customers pay a one-
time fee? Will you have a monthly subscription fee? Perhaps you give away your product
for free like Skype does and hope that some portion of your customers upgrade to your
premium product.
If your company serves more than one customer segment, the revenue must be declared
for each customer segment. Also, if your company provides more than one
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product/service, the revenue generated from each product/service should be described
separately.
6. Key Resources
The key resources block describes your most important strategic assets that are required
to make your business model work. The resources can be owned or leased by the
company, or they may be acquired.
7. Key Activities
These are the most important strategic activities you must do to make your business work.
These could include promotional activities, further product research and development,
etc. Key activities should be directly related to your value proposition. If they’re not, then
something is wrong. Because, the activities that you view as being most important in your
business aren’t actually delivering any value to your customers.
8. Key Partners
The key partnerships block describes the network of suppliers and partners that support
you in running the rest of your business model blocks. In this block, you list the tasks and
activities that are important but which you’re not going to do yourself. Instead, you’ll use
suppliers and partners to make your business work.
For example, Spotify’s key activity is probably updating their platform by uploading music
from artists. However, as it doesn’t produce its own music, one of the key partnerships of
Spotify will be the deals that it strikes with the artists, record labels and publishing houses.
Without those deals, there literally wouldn’t be any music in Spotify.
9. Cost Structure
The final block of the business model canvas is cost structure. This is where we map key
activities to costs. The cost structure block describes all costs incurred to operate the
business model, such as the basic operating costs of the business, the cost to build and
make the product, the costs of using different channels, the cost to get, keep, and grow
customers, etc.
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When describing a business model, try not to describe each block as
being isolated from the rest of your business model. While describing
each block, try to describe the impact of the blocks on each other and
how they work together to form a business model as a whole.
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The Business
Model Canvas
Instruction Manual5
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Materials
Canvas Template
The Business Model Canvas may be printed in a letter-size or A4 sheet of paper. It is preferred to
use a B0 sized sheet for better visualization and discussion. You may also use an online electronic
material like Google’s Jamboard or Strategyzer.
Sticky Notes
Markers
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to sketch out their entire business model. What you really want to
do is just get started. Put up the sticky notes. Now, why do you want
to get started? Because you want to have a tangible visible, concrete
conversation and there's no risk. You can move the sticky note
around or if you think something shouldn't be there and the
conversation shows that, you can always take it away.
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Sketch out stuff on a sticky note, make it clear of course, because
your brain processes images faster than words. And the best way to
do it is using images and words so it's crystal clear what you're talking
about and your brain can still process this very quickly, and you can
look at the big picture of an entire business model.
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Instructions
Getting started:
Start sketching out your business model by creating sticky notes for each one of the nine building
blocks. Some people prefer to begin with listing their customer segments or value propositions.
Others prefer starting with their key resources or key activities. It doesn’t matter. Just do it.
Tell a story:
When finished sketching out your business model, try telling the story of your model one sticky
note at a time. Take all the sticky notes down and explain your business model by putting up one
sticky note after the other on a blank Canvas. This will force you to tell a coherent story element
after element.
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WEEK 4 BUSINESS MODELLING
DEADLINE:
BMC - Friday, May 22, 2020 on or before 11:59PM
PITCH DECK - Saturday, May 23, 2020 on or before 11:59PM
GENERAL DIRECTION:
1. With the same group and business idea that you have, create and layout your
BUSINESS MODEL CANVAS (BMC).
*See annexes of Week 4 Courseware for the SAMPLE TEMPLATE.
2. Upload BMC to your designated google drive folder using this:
FILENAME: 04-T1-BUSINESS MODEL CANVAS*
*T1 – Team 1, T2 – Team 2, and so on…
3. Submit your BMC on or before 11:59PM of Friday, May 22, 2020.
4. Prepare your PITCH DECK (containing all your worksheets starting Week 1) and
upload on or before 11:59PM of Saturday May 23, 2020.
*A separate instruction will be given for your midterm requirement. Use the PITCH
DECK I will be posting this weekend. Please standby.
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END OF MODULE 4
BUSINESS MODELLING
SOURCES
1. Samantha Garner, “Why a business model is so
important?”,
http://canadianentrepreneurtraining.com/why-a-
business-model-is-so-important/
2. Gary Fox, “What Is A Business Model? Definition,
Explanation & 30+ Examples”,
https://www.garyfox.co/what-is-a-business-model/
3. Muammer Huseyinoglu, “Business Model Explained”,
https://medium.com/swlh/business-model-canvas-
explained-545434daa7cc
4. Today Founder, “How To Describe Your Business
Model”, https://todayfounder.com/how-to-describe-
your-business-model/
5. Strategyzer AG, “The Business Model Canvas
Instruction Manual”
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ANNEXES
Google’s Business Model Canvas
Skype’s Business Model Canvas
Business Model Canvas Template
Blah-Blah-Blah Card
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