Saturday, January 28, 2017

Business Model Canvas - Building Blocks - 07 - Key Activities

Key Activities = Most important things a company must do to make its business model work



Company
Business Model
Key Activity
Microsoft
Software Maker
Software Development
Dell
PC Manufacturer
Supply Chain Management
McKinsey
Consultancy
Problem Solving

 Questions to ask ourselves while thinking about Key Activities:
  • Our Value Propositions require what type of Key Activities?
  • Our Distribution Channels require what type of Key Activities?
  • Our Customer Relationships require what type of Key Activities?
  • Our Revenue Streams require what type of Key Activities?


These are some ways to categorize Key Activities:
  • Production:
    • Example: Activities like: Designing, Making and Delivering a Product in substantial quantities or of superior quality.
    • Production activity dominates the business model of manufacturing firms.
  • Problem Solving:
    • Activities include - coming up with new solutions to individual customer problems.
    • Example: operations of consultancies, hospitals and other service organizations are typically dominated by problem solving activities.
    • Their business models call for activities like: knowledge management and continuous training.
  • Platform / Network:
    • Business models designed with a platform as a key resource are dominated by platform or network related key activities.
    • Networks, matchmaking platforms, software and even brands can function as a platform.
    • eBay's business model requires that the company continually develop and maintain its platform: the website at eBay.com.
    • Visa's business model requires activities related to its Visa credit card transaction platform for merchants, customers and banks.
    • Microsoft's business model requires managing the interface between other vendor's software and its Windows operating system platform.
    • Key activities in this category relate to platform management, service provisioning and platform promotion.

No comments:

Post a Comment