Business Model Canvas Part 3

In this service marketing class, we are given a project to create a super hotel that will cater to 3 different customer segments (business people, employees and housewives). Our group's part is the business people. So, we focused on infrastructure management which means maximizing the use of all assets to be more efficient (that in turn will cut down cost).

Our idea to improve employee efficiency was to give them more training on how to reduce mistakes, better time management, delegation and others. Aside from contributing to employees' knowledge and skills, this training program will improve their motivation level which will, again, lead to higher efficiency. Moreover, efficiency can be improved by creating waste management program like reusing or recycling waste products to create something else. Such as the use of toast bread crust to produce breadcrumb. Other than that, more revenue can be earned from renting free space to outside establishments and expenses can be cut down by working together with hospitality schools and universities to provide free trainees.

It is really important to be efficient and that's what we have done in our businesses. In our Hungrylicious restaurant, the left over croissants are coated with chocolate, packed and sold all around UC. Vegetable trimmings can be used to make vegetable stock, and the chicken bones can be roasted to make brown sauce. This is proved to reduce the cost of our restaurant. In the future, we will think of any other ways to reduce cost and improve revenue to earn higher profit.

Business Model Canvas Part 2 -- The Patterns

Today's marketing class was a continuation of the business model canvas. I haven't learned about these theories before, that was why I listened very closely and tried my best to understand. We focused on business model patterns. There were many business models such as un-bundling business model, long tail, multi-sided business model and open business model.

The thing is, we must not try to cover all areas in business because we will lose focus and spend just way too much money on things that will not work out! Instead, we should try to focus on one aspect such as service excellence but try to integrate this value with other values like product innovation and infrastructure management. This is what un-bundling business model is all about. When I ponder about it again, I think that 'well, it really make sense!' The same goes to our personal life. We have to make our priorities! Whether we want to focus on education, career, love life or relationship with family. Of course all these things should be present in our daily life, but there will absolutely be one aspect that overgrown the others.

While last week's lecture was about the basic principles of business model canvas, today was about the application of business model canvas to different types of business model patterns. We were taught about how the business model canvas looks like when it is applied in long tail business model pattern and so on. Our Miracle Recycle business can be considered as long tail business model pattern since it caters the niche market. It takes lots of time to earn revenue because we have to plant the idea of environmental concern into our target market. Currently, it is still not much but in the near future, we are sure that it will become a big hit in Indonesia.

BMC Part 1

I first learned about BMC (Business Model Canvas) in my Entrepreneur 4 class and surprisingly it is carried forward to my Entrepreneur 5 class as well as this Service Marketing Class. Mr. Sandy even mentioned that it will still be used whenever we are still in the business world. For me, BMC helps me to think in a paternalistic way and helps me to organize ideas for my product. What product I need to produce for the customer, how to distribute them to the customer and how will I be able to produce the product itself. There are lots of supporting details behind those 3 factors.

I got to know so much more about BMC from today's class because the discussion was really into details of each element and examples were given. Today's lesson made me feel that my E5 Mid-term exam presentation was incomplete! I need to explore more about our products (for Miracle Recycle, Carnaval Snack Box, Hungrylicious Resto and my very own Delicate Patisserie) and analyze every single element of their business model canvas.