How to Use Business Model Canvas?

How to Use Business Model Canvas?

How to Use Business Model Canvas?

BMC is used to describe business activities. This will give us an overview of business conditions or can be used to develop new business models.

Ideas will be nothing if they cannot be executed. The direct execution of an idea without a plan can result in wasted time and cost. In a business context, what is needed is how to turn ideas into a business in a fast and efficient way.

The most widely used tool to turn ideas into business is the business model. The business model simplifies complex business realities into basic elements that are easy to make.

Business Model Canvas can be used well when outlined on large sheets, so that groups can jointly start sketching and discussing elements of a business model by using post-it (a piece of colored paper used to make notes), by using the hand as a tool to understand the discussion

Alexander Osterwalder and Yves Pigneur, coined a concept that simplifies business concepts that can be applied in all types of industries. The concept is referred to as a business model. The business model is designed to simplify a business complexity so that it can be more easily understood by ordinary people or people who are not involved in the business. Simplification does not mean underestimating a business concept that has been prepared or underestimate the intellect of its maker. The business model only seeks to unify the different business concepts into a common "language" that can be adopted by all parties.

The business model describes rationally about how an organization (both profit and non-profit) creates, communicates, and finds important values for customers. The concept of a business model uses 9 main factors as a shared language to understand business. The nine factors include:

1. Un-building business model In a business, there are 3 management concepts, namely the x, y, and z axis Where the x axis is Product innovation, the y axis is Infrastructure, and the z axis is Service Excellence. Each company can only choose one of the three management concepts because the three concepts collide with each other. For example, if we want to innovate products, we cannot provide satisfying services. Besides, if we want to do product innovation, efficiency will be disrupted because to innovate products requires more costs, in addition, if we want to provide good service we cannot combine it with efficiency because to be able to provide good service we need to pay for learning for our employees

2. Long Tail This business model is said to be long tail because profits can be obtained over a very long period of time and this business model is rarely used.

3. Multi-Sided Platform This business model is a business model that benefits from a number of sources, in addition to that business model also develops into several segments. For example, Google gets revenue from advertising.

4. Free Business Model This business model is in the form of a company providing a free service so people can be interested and move to use the product. In addition to offering a free product, this company also provides a service that has to pay. Example: AVIRA anti-virus.

5. Open Business Models in this business busines two types, namely: -Outside in: where products from outside are purchased for the benefit of our company. -Inside out: where the company sells products for the benefit of other companies In my opinion, of the five types of business models, the best is multi-sided because the benefits come from many segments and also several sources.

9 Building Blocks and How to Use them.

1. The Customer Segment.

The Customer Segments building block defines the different groups of people or organizations and enterprise aims to reach and serve

Know / Know Your Business Customers
find out what age, gender or gender of your customers, where they live, what are their needs, how much are they spending each month, do a survey to get the data above, if you have clear data you can determine what type of product will be offered to them.

The business model concept puts customers first because it sees that the company must be customer-oriented.

Companies must be able to capture the desires of customers and be able to map which customers need the most attention from the company. With unlimited customer desires and limited company capabilities, of course, a company cannot fulfill all customer desires.

Therefore the company must segment the customer. Customer segmentation can be divided into various categories; demographics, geography, psychography and others. Based on its capabilities, the company can choose the chosen customers; mass market, niche market, segmented market, or two side market.

One wise piece of advice that companies must keep in mind about customer orientation is that "the desires of consumers always change in the short term, so companies must more quickly grasp those changes or fall behind" However, it is also not easy for companies to position themselves as companies that create demand. So that competition to become a company that understands customers will always be tight as time changes.

Customer Market Segments consist of various kinds of buyers who buy a product according to their wishes, resources, location, and buying habits. Because each has unique needs and desires, each buyer is its own potential market.

Therefore, the seller should ideally design his own marketing program for each of these market segments, but not all customer groups can be referred to as market segments. A group of customers can be called a market segment if:

  • Requires services (value propositions) that are separate because of special problems and needs.
  • Achieved and served with different distribution channels.
  • Need a different approach (customer relationship).
  • Provides different profitability.
  • Have different ability to pay according to the perception of the value they receive.

In general, market segments consist of groups of customers who have the same set of desires (Kotler, 2005). Customers are the heart of every business model. Without customers, no company can survive for a long time. In order to meet customer satisfaction, the company groups customers into several different segments based on shared needs, shared behavior, and others. The business model can be applied in a variety of companies both small and large.

There are various types in market segmentation including:

1. Open Market (Mass Market)
Business models that market segmentation are mass markets or open markets do not classify customers into various groups or specific segments. Here, the company assumes that everyone is a customer. Value propositions (value added given to customers), channels (channels for dealing with customers), and customer relationships (the type of relationship that wants to be established with customers) only focus on the general public who have similar needs and problems. This type of business model can be found in electronic equipment customers.

2. Niche Market
Business models that market segmentation are niche markets or niche markets targeting specific specific market segments that are usually small in number and are not well served. Value propositions (added value given to customers), channels (channels to connect with customers), and customer relationships (the type of relationship that wants to be established with customers) are all aimed at the specific needs of the niche market. This business model is commonly found in business relationships between supplier-buyers, for example a car assembly plant needs materials from the main automobile factory.

Marketers usually identify a niche market by dividing a segment into several sub-segments or by defining a group that is looking for a combination of special benefits that is different from that sought by other groups. For example, the heavy smoker segment includes those who are trying to stop smoking and those who don't care.

An attractive market niche has the following characteristics: Customers in that market have a completely different set of needs; they are willing to pay additional prices to companies that best satisfy their needs; the niche might not attract other competitors; niche fill companies get certain savings through specialization; and niches have an adequate size, profit, and growth potential.

3. Segmented Market (Segmented)
A business model in which market segmentation is segmented groups customers in different segments that have different needs and problems. Value propotions (value added given to customers), channels (channels for dealing with customers), and customer relationships (the type of relationship that wants to be established with customers) are tailored to the market segment.

Market segmentation is a grouping of individuals (customers) into several groups (segments) where individuals who are in one segment have characteristics or behavior that are relatively similar (homogeneous) compared to individuals in other groups (Kotler, 2003). There are several approaches used to segment the market, namely demography, geography and psychography. Demographic approaches include age, gender, occupation, education, and income. The geographical approach tends to divide customers according to the area of ​​residence, while the psychographic approach includes lifestyles, attitudes, and customer interests (Airlangga, 2011).

4. Market Diversification (Diversified)
Business models that have a diversified market segmentation classify customers in various segments that have no relation in terms of problems and needs. These two or more customer segments seem to have the same needs, but with different characteristics. With market diversification, market volume will also be wider. In fact, it might be able to create new markets. For example, in 2006, decided to diversify its retail business, which it has been engaged in by selling "cloud computing" services, which are services engaged in online and server storage. This causes to start a business with a different market segment that has very different added values.

5. Multi-market (Multi-sided Platform)
Some organizations serve two or more customers who have relationships with each other or are interconnected (multiside market). For example, a company engaged in the newspaper business needs a large audience to attract advertisers. On the other hand, companies also need advertisers to finance production and distribution. Both of these segments are needed to make this company's business model.

2. The Value Proposition.

The value proposition building block describes the bundle of product services that creates the value of a specific Customer Segment

What Product You Will Offer
For what products will be your choice, you can determine after you know your customer data, in terms of what they need, for example, your customers are students, then you can provide the products students need, such as thesis manuals, etc. or if the needs of your customers are those who like to speak English then you can open an English language course institution.

Now customers are confused about what they will consume and how they will get it. This happens because many competing companies offer the same thing. At the same time, there are still companies that only offer functions without regard to value.

Product value is not only explained from the functional product or only meets the main needs of a product, but more than that. The value of the product meets the overall needs of consumers, both visible and unseen. The company's job is to create that value.

Value propositions (products added to customers) consist of products and services that can add value to specific segments. For customers, value propositions are manifested in the form of solving problems faced or fulfilled needs.

Value propositions are the reason why customers often shift attention from one company to another. These value propositions can address customer needs or satisfy customer needs. In this case, value propositions are the benefits offered by the company to customers.

Some value propositions are innovative that offer something completely new. Others can also be similar to general market offerings, but are added with other attributes.
In the canvas business model, the element of value propositions influences and is influenced by almost all other elements.

The directly related element is customer segments. This can be understood, because each segment has unique needs and problems. Design value propositions can be done with value innovation (value creation) and cost reduction.

Value innovation will make customers willing to pay higher and will increase revenue streams. In addition to value creation, companies can also reduce or eliminate value propositions that are not actually needed or are less important to customers so as to reduce costs.

Value propositions create added value for market segments by mixing elements that meet the needs of market segments. Added value can be quantitative (For example: price, speed of service) and qualitative (For example: design, customer experience).

Some elements that contribute to the formation of added value are:

1. Newness
The novelty value proposition is a value proposition that has never been offered by any company because there is no such offer. This often happens with technology products, such as cellular phones.

2. Performance
Improving product quality or performance in service is a common way to create added value. However, improved performance has limitations, for example fast computer growth continues to require large data storage and improved graphics so that it cannot meet customer needs anymore.

3. Customization
Customization is a product or service that is tailored to the individual needs of the customer. Now the concept of mass cuztomization is developed, which is a form of adjustment to individual needs but can be mass produced. Today, mass customization and co-creation products are becoming increasingly important.

4. Getting the Job Done
This added value can be created by assisting customers in completing several jobs. For example, advertising companies help customers in designing and creating advertisements. With the help of this advertising company, customers can concentrate more on carrying out promotional strategies.

5. Design
Design added value is an important attribute but is difficult to measure. A product can look luxurious because of a good design. In the fashion and electronics industry, design is a very important value proposition.

6. Brand / Status (Brand / Status)
Customers can find added value in the brand of a product or service. The added value of this brand is considered to be able to improve the socioeconomic status of customers who use their products. For example, Rolex watch customers will feel proud when wearing these watches.

7. Price (Price)
When a company offers a product that is similar to a product that is already on the market and is cheaper than other products it is a common way to win price sensitive market segments. For example, RIM issued a Blackberry under two million rupiah to add value in terms of price.

8. Cost Reduction
The company can provide value to customers in the form of reduced costs from activities carried out by customers. For example, which sells customer relationship management hosting applications. This can benefit the customer because the customer is free from the costs of buying, installing, and managing the software itself.

9. Risk Reduction
The company can provide value to customers by reducing the risk faced by customers. For example is the guarantee of a product or service from a company to serve customer complaints due to damaged or unusable product or service.

10. Access (Accessibility)
Another way to provide added value is to make products or services that can be reached by customers where previous customers could not reach the product or service. This is the result of business model innovation, new technology, or a combination of both.

11. Comfort / Ease of Use (Convenience / Usability)
Companies can also create added value by making products that are more convenient and easier for customers to use. For example, the iPod and iTunes companies, Apple, offer customers the convenience of finding, buying, downloading, and listening to digital music.

3. The Channels.

The Channels building block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition

Channels are a means for organizations to deliver value proposition to the customer segment served. The channel functions in several stages from customer awareness to after sales service.

Channel describes how a company communicates and deliver the value of certain propositions offered to a group of customers. Channels are the "touch points" of an organization with customers who play a very important role in building a customer experience.

When the company already has the value of the product offered, the task that must be done is to convey that value to the consumer. Without good communication and distribution channels, the value of the product will not be captured well by consumers. There are even times when the value of a product lies in its communication channels and distribution.

Channels are a channel to connect with customers. Communication, distribution and sales network is one of the company's efforts to communicate with customers. Channels play an important role in the customer experience.

Channels has several functions, including:
1. Increase customer awareness of the products and services of the company.
2. Assist customers in evaluating the value proposition of the company.
3. Facilitating customers to make certain products and services.
4. Helps deliver added value to customers.
5. Provide support to customers after purchase.

Finding the right channels to satisfy customer needs is a crucial part of providing a value proposition for the company.

Organizations can choose to touch their customers through the company's own media, media partners, or a combination of the two. Partner channels are usually indirect and have a variety of choices, such as wholesales, retail, and others.

Partner channels make the margins the company receives are low, but companies can develop and use the advantages of partners. Owned channels make the company receives high margins, but also wasteful in financing.

The most appropriate way is to combine and balance the two to make customers satisfied and maximize profits.

Osterwalder and Pigneur (2010) divided channels into 5 (five) phases, namely awareness, evaluation, purchase, delivery, and aftersales. In the awareness phase, channels function to introduce the company to customers.

The next evaluation phase or assessment phase is a phase for mutual evaluation between the company and the customer. The next phase is the purchase phase, which is the purchase phase where the company and the customer carry out the transaction of buying and selling products. After the transaction process, the channels enter the delivery phase which is proof of value propositions. The customer is entitled to the "promise" offered, and on the other hand, the company is obliged to fulfill the "promise" offered in the value propositions, and is entitled to an award.

Then the last phase is the after sales phase or after-sales phase which is often forgotten or ignored by the company. The post-sale phase is the determining phase whether the customer re-transacts with the company or the customer is sufficient to make a transaction once.

The ease with which customers submit their suggestions and complaints is a crucial moment in determining the long-term cooperation relationship.

4. The Marketing Strategy & Customer Relationship.

To introduce your business in need of marketing or marketing strategies so that your business quickly circulates and is known to many people, now there is no difficulty in terms of marketing, you can take advantage of so many and well-known social media such as Facebook, Twitter, Google Plus, etc. Just how do you be consistent in marketing with existing facilities.

When customers have captured the value that the company offers, the company must maintain the relationship for a long time. The more consumers are bound to a product, the more guaranteed the survival of the product and the company. It doesn't even rule out the possibility of companies acquiring customers from competing companies by offering better value. Because basically consumers are always looking for new and better things.

Customer relationships are the type of relationships that you want to establish with customers from specific market segments. Companies should think about the type of relationship that will be established with customers from various segments.

Customer relationships can be formed from various motivations, including:

1. Customer acquisition
2. Customer retention
3. Boosting sales (upselling)

The job of a marketer in two large groups, namely customer acquisition and customer retention.

In the first group (customer acquisition), the job of the marketer is to continually look for new customers, both from competing customers and turning previously non-customers into their managed customers.

As for the second group (customer retention), the task of the marketer is to continually retain customers who are already using their brands so as not to move to competing brands (Wind, 2002).

While boosting sales is encouraging existing customers to shop more for the company.

Based on the business model, customer relationships greatly affect customer feelings. There are several categories of customer relationships that can be integrated with customer segments, including:

1. Personal Assistance
This relationship pattern is obtained based on interactions between individuals. Customers can communicate with representatives of the company directly during the purchase or post-purchase process. This is often done through call centers, e-mails, and other media.
2. Dedicated Personal Assistance
This relationship is similar to personal assitance but is deeper and more intensive. Here the company gives special treatment to customers as a special person. Usually the company appoints a representative to serve certain customers.
3. Self Service
In this type of relationship, the company does not interact directly or personally with customers. The company provides important things to help customers meet their needs.
In retail companies, self service refers to the store format that is often known today. Customers can explore their choices at their leisure, choose their own shopping basket, and complete the shopping process by paying at the cash register at the front of the store (Neuman, 2006).
4. Automated Service
In this type of relationship, the company does not interact directly with customers, but provides important things that are processed automatically. This is a type of personal assistance relationship with self service. For example, online personal profiles provide access to services that are tailored to customer needs. This automated service can recognize individual customers and the characteristics of these customers so that they can offer products that are suitable for customers.
5. Communities
Generally companies often use the community to get closer to customers and facilitate customers who are members of the community. Companies often create online communities so customers can exchange ideas and share with one another.
6. Co-creation
Most companies return to the traditional company-customer relationship to add value. In this type of relationship, the company engages customers to create value for the customers themselves. For example, online bookstores invite customers to write reviews and create value for other customers.

5. The Revenue Stream

The Revenue Streams building block represents the cash a company generates from each Customer Segments

Determine the Revenue Plan
This is the most important thing in building a business, you need to think about the source of income from what business you are going to live in, maybe if you want to do business online you can get income from other people who put advertisements on Twitter or your fanpage or your website. You also have to be able to estimate what percentage of income you will get if you decide to run a business.

Osterwalder & Pigneur (2010) explains that if the customer is the heart of the company, then revenue streams are the blood vessels. And companies need to question what value customers are willing to pay. A business model can involve two different types of revenue streams, namely:

1. Transaction revenues obtained from 1 time payment from the customer
2. Recurring revenues from ongoing payments to deliver value propositions to customers (Rent, Credit, Subscription) and provide customer support after purchase.

Revenue Streams are revenue received by companies from each market segment or in other words revenue streams are revenue that is usually measured in terms of money received by the company from its customers.

If customer satisfaction is the heart of a business model, then revenue streams are the arteries. Revenue streams do not represent the benefits obtained, because it is generally known that profits are net income after deducting business costs (PPM Management, 2012).

Companies must often think about what added value can be used so that customers are willing to pay for it. If this question can be answered, the company can infer one or more of the revenue streams obtained from each market segment.

Each revenue stream has a different pricing mechanism, for example fixed prices, bargaining, auctioning, market dependent, volume dependent, and yield management.

6. Key Resources.

The key Resources building block describes the most important assets required to make a business model work

Business Partner
if you feel unable to be alone to run a business, especially if your business is a large business then you need to find a working partner, because to make a good business you can not be alone and have to find partners to work together to manage the business. In finding your partner as well must be observant and do not just search, look for partners who have the potential and ability to suit your business, look for business partners who are truly quality and can be trusted to manage your business.

Key resources related to raw materials and supply channels needed in the production process. The availability and quality of ingredients is an important element in a company. The value of the product can also be determined by communicating how the raw material is obtained and how the quality of the raw material affects the quality of the product.

Key resources are the main resources needed by the company so that the business model can run.

These main resources enable a company to form and offer value propositions, gain markets, monitor relationships with market segments, and earn revenue. Key resources are formed based on the type of business model.

Key resources can be in the form of physical, financial, intellectual, or human objects. Key resources can be owned by companies or in collaboration with Key partners.

Key resources can be grouped as follows:

1. Facilities (Physical)
This category includes physical assets such as manufacturing facilities, buildings, machinery and equipment, systems, sales systems, and distribution networks.
2. Intellectual (Intellectual)
Intellectual resources include brands, knowledge, patents and copyrights, partnerships, and customer databases which are important components in creating a strong business model. Intellectual resources are very difficult to build but when they are successfully built can provide very good added value.
3. Human (Human)
Every business needs human resources, but humans are a very important asset in the business model.
4. Financial (Financial)
Some business models require financial resources and / or financial guarantees, for example cash, credit, and other needs to meet the company's resource needs.
5. Technology (Technology)
In high-tech companies, technology becomes a crucial resource. In telecommunications companies, mastery of the latest technology is the determinant for realizing the value propositions promised to customers.
6. Distribution Channels (Channel)
Distribution channels are now also an important resource. For consumer good companies, distribution channels for their products are very important.

7. Key Activities.

The Key Activities building block describes the most important things a company must do to make its business model work

Business activities
You need to think about any activities or activities in your business that will be done to generate income that can benefit your business.

Is the main activity of the organization to be able to create value propositions. According to Osterwalder & Pigneur (2010), key activities describe the important activities that must be carried out by the company so that the business model can run well.

Key activities are the main activities that need to be carried out by the organization or company in order to provide added value well.

Each business model has main activities. This is the most important action for the company to operate the company successfully.

Like key resources, key activites are also needed to make and offer customers a value proposition, gain market share, and generate revenue. In addition, key activities are based on a business model.

Key activities can be categorized as follows:

1. Production Operations

This activity aims to design, make, and deliver a certain number of products and / or good quality. Production activity dominates in the business model in manufacturing factories. The main activities in the type of production organization include procurement of materials needed from suppliers, processing in the production process, and distribution of finished products or services to customers.

2. Service Operations (Problem Solving)

This activity aims to overcome problems and provide new solutions to individual customer problems. Problem-solving activities in particular are types of operations for consultants, hospitals and other service organizations.

3. Platform and Network (Platform / Network)

The main activities in business organizations based on platforms and networks are the design, construction, and development of hardware and software, including internet networks and websites.

Its activities include providing services needed by customers and users, including the delivery process and maintaining relationships with customers.

8. Key Partnerships.

The Key Partnerships building block describes the network of suppliers and partners that make the business model work

You certainly will find it difficult if you walk alone in business, that's where you need resources that can boost your business progress rapidly, you need to find people to be made into staff or secretaries, or finance, etc., Resources needed to be able to divide the tasks in your business according to the part that is needed.

It is a resource needed by an organization to realize a value proposition, but is not owned by the organization. Utilization of Key Partnerships by companies can take the form of outsourcing, joint ventures, joint operations, or strategic alliances.

Partnership or partnerships is an agreement and cooperation between the two parties to achieve a common interest. It has become a common strategy for companies to establish partnerships aimed at having high competitiveness from their rivals

Key partnerships are the main partners in business, for example suppliers, so the business model can work.

Companies collaborate for several reasons and the fabric of cooperation forms the basis of several business models. Companies make alliances to optimize their business models, reduce risk, or obtain resources.

We can distinguish between the four different types of partnerships:

1. Strategic alliances between companies not competitors
2. Coopetition: a strategic partnership between competitors
3. Joint ventures to create new businesses
4. Buyer-supplier relationship so that it can guarantee that the supply obtained is a good supply

This can be useful in distinguishing the three motivations for forming partnerships:

1. Optimization and Economic Scale
The most basic form of partnership or buyer and supplier relationship is designed to optimize the allocation of resources and activities. It is not possible for a company to carry out its activities alone. Economy-scale optimization and partnerships are usually formed to reduce costs, outsource or share infrastructure.
2. Risk Reduction and Uncertainty
Partnerships can help reduce risk in a competitive environment characterized by uncertainty. It is not uncommon for competing companies to form strategic alliances in one area while competing in another.
3. Obtaining Certain Resources and Activities
Only a few companies have all the resources or do all the activities described by their business model. Instead, they increase their ability by relying on other companies to provide certain resources or carry out certain activities. The partnership can be motivated by the need to acquire knowledge, licenses, or access to customers.

9. Cost Structure.

The Cost Structure describes all costs incurred to operate a business model.

In the business world everything is bound to cost money, although the level of cost varies between one business and another, but certainly requires costs for business to run. you here must be able to calculate the costs required in your business, make sure you make a written data on expenses and income in your business, you must know how much is the expenditure and how much income from your business, if the expense is greater than the income means you need to make improvements performance in your business so that you can generate more revenue than expenses.

Is the cost composition for operating an organization to realize the value proposition given to customers. An efficient cost structure is the key to the amount of profit the organization earns. In this Cost Structure block, it explains all the costs that will arise in running a business model. The costs described are usually the most important cost items.

In business activities to deliver Value Propositions to customers, maintain Customer Relationships and generate revenue, all of which require costs. These costs can be calculated easily after Key Resources, Key Activities and Key Partnerships have been determined.

Cost structure is the cost components used so that the organization or company can run in accordance with its business model.

Creating and increasing added value, connecting with customers, and earning income are all included in the cost component.

Some cost components can be calculated after the company knows key resources, key activities, and key partnerships.

Actually, costs can be minimized in each business model. There are two types of Cost Structure business models, they are cost based and value added

1. Cost-driven
The cost-driven business model focuses on cost minimization wherever cost minimization can be carried out. This approach focuses on creating and monitoring the lowest cost structure, using inexpensive value propositions, maximizing automation, and extensive outsourcing.

2. Value-driven
Some companies are less concerned with the cost implications of certain business models and focus on the formation of added value because the target market segments are market segments that are not price sensitive. Value propositions and a high level of personal service usually characterize this business model.

Cost Structure has several characteristics, including:

1. Fixed Costs
Fixed costs are the same fixed costs even though the volume of goods or services produced goes up or down. Examples are salaries, rent, and physical manufacturing facilities. Some businesses such as manufacturing companies are characterized by a high proportion of fixed costs. According to Hernanto (1989), fixed costs are large and small costs not dependent on the size of the production, for example land tax, land rent, depreciation of agricultural building equipment, and interest on loans.

2. Variable Costs
Variable costs are costs that vary proportionally with the volume of goods or services produced. Some businesses such as music festivals are characterized by a high proportion of variable costs. According to Hernanto (1989), variable costs are costs directly related to the amount of production.

3. Economic Scale
Economies of scale are cost advantages because output increases. Larger companies, for example, benefit by lowering the level of mass purchases. This and other factors cause the average cost per unit to fall as output increases.

4. Economies of Scope
Cost structures that rely on economies of scale utilize the volume of activity to reduce costs.

Mapping a business model is something that is commonly done, but designing a new and innovative business model is another thing. Mapping a business model is one of the stages in designing a business model for your startup.

To make new choices in the business model, the first step needed is to generate or generation of ideas, namely gathering ideas before narrowing to a short list of possible choices and synthesis of ideas where ideas are discussed, combined, and narrowed down to a number of feasible choices. In generating ideas, it can be seen from a different starting point, namely the epicenter of the canvas business model innovation and the "what if" question.

Ideas for business model innovation can come from anywhere, and each building block can be a starting point for starting innovation.

There are 4 (four) epicenter of business model innovations such as resources-driven, offer-driven, customer-driven, and finance-driven and each has a strong impact on other blocks. In addition, in making business model designs, managers can also use the "what if" question.

This question is a starting point in making business models.

This question challenges the mind to find the right business model. Some "what if" questions might still not be answered because they are too provocative. However, this question has aroused creativity because it spurs the brain to think deeper.