RHCC All Notes on lectures & workshops:
Lecture 1 BMC:
1. Customer segments:
- Specific groups of customers and clients (could also be companies and organizations).
- Look at what your target group is wanting
2. Value propositions:
- It seeks to solve customer problems and satisfy customer needs to value propositions.
- What value do we deliver to our customers?: Newness, performance, customization,
design, brand, status, price, cost, risk, accessibility, convenience, usability, etc.
3. Channels:
- Through which Channels do our Customer Segments want to be reached?
- Value propositions are delivered to customers through communication, distribution and
sales channels.
4. Customer relationships:
- What type of relationship does each of our Customer segments expect us to establish and
maintain with them?
- Costumer relationships are established and maintained with each Customer Segment.
5. Social media: (fine tune social media with target group to make the best fit)
- Social media is best understood as a group of new kinds of online media, which share most
or all of the following characteristics: Participation, Openness, Conversation, Community
and Connectedness.
- At this time, there are basically six kinds of social media. Note, though, that innovation and
change are rife.
Social networks: Facebook
Blogs:
,Wikis: Wikipedia
Podcasts: iTunes
Forums:
Content communities: YouTube
Microblogging: twitter
6. Key resources: (knowledge as a tourism student)
- What Key Resources do our Value Propositions require?
- Key resources are the assets required to offer and deliver the previously described
elements.
- TYPES OF RESOURCES:
Physical (e.g. Wal-Mart, Amazon.com)
Intellectual (e.g. Nike, Sony)
Human (e.g. pharmaceutical company)
Financial (e.g. Ikea)
7. Key activities: (all activities that create value)
- What Key Activities do our Value Propositions require? By performing a number of key
activities.
- CATEGORIES:
Production (e.g. granules for synthetic fibres)
Problem Solving (e.g. consultancies, hospitals and other service organizations; Deloitte)
Platform/Network (e.g. eBay’s, Visa)
8. Key partnerships:
- Who are our key partners?
- Some activities are outsourced, and some resources are acquired outside the enterprise.
Strategic alliances between non-competitors
Coopetition
Joint ventures
Buyer-supplier relationships
3 motivations:
- Optimization and economy of scale (e.g. Citroën, Peugot, Toyota, Aygo)
- Reduction of risk and uncertainty (e.g. Philips, Sony)
- Acquisition of particular resources and activities (e.g. Network NS; Prorail)
9. Revenue streams: (ways of generating money, how to sell products)
- For what value are our customers really willing to pay?
- Revenue streams result from value proposition successfully offered to customers
segments.
- Subscriptions, direct buying, extra things that need to be bought (skins with a game or
blades with a razor)
10. Cost structure: (the costs you make to deliver your product + the way you think you
build up your price)
- What are the most important costs in our business model?
- The business model elements result in the cost structure.
- Different cost structures:
Cost driven (e.g. no frill airlines; Southwest, EasyJet and Ryanair)
Value-driven (luxurious hotels; Hyatt)
Fixed costs (wages, rent, physical product facilities)
, Variable costs (e.g. music festivals)
Economies of scale (e.g. large companies & lower bulk purchase rates)
Economies of scope (e.g. Unilever, Philips, Walmart)
Strong points of the BMC:
- If one building blocks changed the BMC will change.
- You can isolate a Customer Segment and build a new BMC by using this CS as a
starting point.
- Especially Key Partners and Revenue streams are offering new opportunities.
Value proposition canvas:
- Searches for new product fits between service offered and what customers want.
- Tool that allows you to design, test and visualize the value of your products for
customers in a structured way.
