My approach in teaching e-commerce has change when I encountered the business model canvas as presented in the book “Business Model Generation“.
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The Business Model Canvas requires one to look into 9 aspects of a business. This includes:
1. Customers – Who is your target market? Are you targeting a niche segment, diversified, or specialized segment?
2. Value proposition – Cite value the business intends to deliver. What problems are you solving? What needs are being met? What products or services will be offered?
3. Channels – How will you reach out, build, and maintain relationship with your customers at various stages such as: awareness, evaluation, purchase, delivery, after-sales customer support.
4. Customer relationship – How will the relationship with the customer be maintained? Will it be one-on-one personal, automated, through communities, self-service, or other modes?
5. Revenue streams – Income areas of the business. I always encourage business to have opportunities for one time and repeat sales, short and long term business relationships, up-sell and cross-sell of products or services.
6. Key resources – List physical, human, intellectual, financial resources needed.
7. Key activities – enumerate important things a company needs to do to deliver the value proposition.
8. Key partnership – cite key resource activities and resources suppliers and / or partners that can help make the business work.
9. Cost structure – identify expenses in delivering key activities, key resources, and key partnerships.
This topic group is an important component of the DigitalFilipino E-Commerce Boot Camp as you will be using this template in analyzing various e-commerce sites, business models, and in presenting your own project.
In the webinar lecture, I shared the DigitalFilipino Start-Up 100 Project as an example and mentioned the following:
Have two targets.
a. Successful entrepreneurs who would like to become investors.
b. Aspiring technopreneurs who need support for their ventures.
2. Value proposition
a. Start-ups can get experienced e-commerce practitioners as mentors providing support to their business.
b. Angel investors are hands-on and will help the start-up in its journey.
c. Locating in Manila is not necessary. We want to support the start-up wherever they may be in the country.
a. For the angel investors network, we will reach out through our personal networks as trust and relationships have already been built.
b. E-Learning – the e-commerce boot camp (online and its future offline forms) is our primary recruitment platform for entrepreneur applicants in the project.
4. Customer relationship
One-on-one relationship management will be fostered as both investors and technopreneur require constant communication in the various phases of a start-up business venture. At the same time, minimalize bureaucracy in getting concerns attended to.
5. Revenue streams
a. Get 3% share of a company invested in the Start-Up 100 Project.
b. To sustain the day-to-day needs of the E-Commerce Boot Camp, the face-to-face boot camp and E-Commerce Summit can provide income opportunities from participation fee to sponsorship.
6. Key resources
a. E-Learning – website, webinar tool, content storage, video and presentation creation / editing tools, computers.
b. Core Group – angel investors (with e-commerce as core or secondary knowledge discipline).
c. Formation of a venture company in the Philippines and Singapore.
d. Create or avail or participate in a funding platform and program to support aspiring start-ups or recruit angel investors.
7. Key activities
a. E-Commerce boot camp (online and offline) to attract potential applicants in the Start-Up 100 Project and in sustaining the platform.
b. Mentoring sessions
c. Angel investors and partner negotiations.
8. Key partnership
a. DigitalFilipino Club members as angel investors and mentors.
b. International incubators for showcasing Filipino e-commerce business start-ups.
c. Funding platform to facilitate easy flow of investment helping the technopreneur.
9. Cost structure
a. E-learning platform (maintenance and technical support)
b. Negotiations (meetings)
c. Professionals / expert support
(This lesson was created last November 2012.)
Join the MSME Mentorship Community
The Business Model Canvas is used as a tool here to present the idea or overview of a project. To develop your ideas further, you can join groups that fosters discussion on this topic exchange what they have done in this area.
To get you started, I encourage you to look into existing online business that catches your fancy and analyze their business model with this tool.
Join the Certified E-Commerce Specialist, Entrepreneur, Professional Program
If you are interested in extending your business online or build a marketplace or become a service provider, you are invited to take part in the Certified E-Commerce Specialist, Entrepreneur, and Professional Program (http://digitalfilipino.com/certified).
This is a self-paced online learning program that you can take anytime, anywhere.
For inquiries about this lesson, contact Janette Toral by sending her a private message via Facebook. She completed “Mastering Business Models” last August 13, 2017 and “Mastering Value Propositions” last August 16, 2017 at Strategyzer Academy (makers of Business Model Canvas and Value Proposition Canvas).