4.

Business Model Development Using

Programming
Business Programming
Brief overview:

• Recap of Weeks 1 - 3
• Defining a “Business Model”
• Identifying how programming supports business model development
• Examples of programmatically enabled business models (automation, data
analytics, e-commerce, etc.)
• Simple use-case exercises

• To do:
• Review prior topics (basic Python, conditionals, loops, data structures).
• Remember: there is a practical connection between code and real-world business.

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Quick Recap (Weeks 1 - 3)

• Week 1: Programming fundamentals, variables, data types, and basic

I/O in Python.
• Week 2: Conditionals, loops, data structures (lists, dicts)
• Week 3: Functions, OOP, and programming paradigms

• Where we stand:
• You can now build small scripts to handle logic (if/else) and repetitive tasks
(loops).
• This foundation lets us prototype simple business applications.

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What Is a Business Model?

• Definition: A business model describes how an organization creates,

delivers, and captures value.
• Key Elements (simplified):
• Value proposition
• Target customers
• Revenue streams
• Cost structure
• Key activities & resources

• Programming can enable or enhance each element. For instance, data

analytics might refine a revenue stream; automation can reduce costs.

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Programming’s Role in Business Model Development

• Software Tools: Provide new channels (e.g., e-commerce site) or

optimize processes (e.g., automated billing).
• Data-Driven Decisions: Code can gather and analyze user behavior,
sales, or operational metrics, refining your value proposition.
• Scalability: Once code is written, it can handle large volumes of
transactions (essential for growth).

• Example: Airbnb or Uber leveraged programming to connect supply

and demand via an app, creating new markets.

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Example – Simple E-commerce Model

• Value Proposition: Sell products online with lower overhead costs.

• Target Customer: Internet users wanting convenient access.
• Revenue Stream: Online sales, subscription plans, etc.
• Cost Structure: Inventory, website hosting, payment processing fees.
• Programming Support:
• Web application (front-end + back-end).
• Inventory management scripts (looping through product data).
• Payment integration (API usage).

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Identifying Business Requirements

• Ask: Which tasks could code automate or streamline?

• Gather:
• Functional requirements: e.g., “Users must be able to register and log in.”
• Non-functional requirements: e.g., “System must handle 1000 transactions/day.”

• Tech Tip:
• Create a requirements list or use a simplified approach: “Who? What? Why? How?”
• Example: “As a store owner (who), I want to automatically restock items (what) so I
never run out (why). I’ll do this by daily scripts checking inventory (how).”

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Translating Requirements into a Model

• Process:
• Identify key entities (e.g., “Customer”, “Product”, “Order”).
• Determine relationships (e.g., “Order has many products.”).
• Outline main actions (e.g., “Submit order,” “Calculate total,” “Apply discount.”).

• Technical: Use Python to model these entities (classes/dicts), then write logic to manage them.

• Example:
class Product:
def __init__(self, name, price):
[Link] = name
[Link] = price

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 Basic Data Flow Diagram
• Visual (flowchart)
Customer
• Diagram (simplified):
• Customer -> Order -> Payment -> ↓
Confirmation
Order
• Python Role: ↓
• Conditionals for payment approval
(if user has enough balance). Payment
• Loops for iterating through items. ↓
• Dictionaries/lists for storing
Notify
product or user data.
↓
Done

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Micro-Exercise #1 – Basic “Order” Calculation

• Prompt the user for multiple product prices (store them in a list).
• Sum them up, apply a discount if total > X (Week 2 skill).
• Print final total and number of items.

• Skeleton:
prices = []
# Loop until user types 'done'
# Summation + discount logic
# Print results

• Purpose: Reinforce conditionals + loops in a business scenario (similar to a small cart system)

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Business Model Canvas (similarity)

• The Business Model Canvas is a popular framework with 9 blocks (Key

Partners, Activities, Resources, Value Prop, Customer Relationships,
Channels, Customer Segments, Cost Structure, Revenue Streams).
• We’re focusing on the “Activities” and “Value Prop” part that often rely on
programming:
• Activities: Automation, e-commerce, analytics
• Value: Software-based convenience or cost-saving

(connecting to recognized frameworks)

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Leveraging Data for Decisions

• Data Analysis: E.g., weekly sales logs => identify best-selling products => adjust
inventory or marketing.
• Python Tools: Even basic scripts can parse CSV files or do quick calculations.
• Example:
# Pseudocode
load [Link]
calculate total sales by product
sort & identify top 3 sellers

• Business Impact: Informs strategy (replenish top sellers, discontinue low-performing

items).

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Micro-Exercise #2 – Mini Sales Report

• Assume you have a small dictionary: • Skeleton:

sales_data = { sales_data = {
"ItemA": 150, "ItemA": 150,
"ItemB": 75, "ItemB": 75,
"ItemC": 200 "ItemC": 200
} }
# sum them, find max
• Write a script to:
• Sum total sales across all items. • Purpose: Reinforces dict usage,
• Identify the item with max sales. iteration, conditional or built-in
• Print a short “report” to the console. functions (like max()).

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Integrating Simple UIs or Scripts

• Command-Line: Enough for quick business logic tests or smaller

tasks.
• Graphical/Web: (Preview of future weeks) Once you know how to
handle the logic, you can wrap it in a GUI or web interface for real
users.
• Note: Connect this “logic-first” approach to the possibility of building
more sophisticated front-ends later.

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Practical Example – “Small Inventory System”

• A quick pseudo-code:
inventory = {"pens": 100, "notebooks": 50, "erasers": 200}

# restock if below threshold

for item, quantity in [Link]():
if quantity < 60:
print(f"Restocking {item}...")
inventory[item] = 100

• Business: Minimizes out-of-stock scenarios, automates reordering.

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Considerations for Scalability

• Once your business model grows:

• Data might be in databases, not just dicts or CSV files.
• You’ll need to manage concurrency, larger user bases, security.

• Week 5+: We’ll talk about web dev, frameworks, or version control to
handle bigger projects.
• Goal: Understand the fundamental logic first, then scale or formalize.

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Mini-Case Study – Local Bakery

• Scenario: A local bakery that wants to:

• Track daily sales by product type (bread, cookies, cakes).
• Identify which item sells best each day.
• Predict next day’s production needs.

• Solution:
• A small Python script reading daily input, generating a short report.
• Possibly sends an email summary to the baker (future: automation).

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Micro-Exercise #3 – Prototype the Bakery Script
• Ask the user for the number of bread, cookies, and cakes sold today.
• Store them in a dict or separate variables.
• Print which product sold the most.
• Suggest how many to bake for tomorrow (e.g., 20% more than today’s best seller).

• Skeleton:
bread_sold = int(input("Breads sold: "))
cookie_sold = int(input("Cookies sold: "))
cake_sold = int(input("Cakes sold: "))

# Determine max
# Suggest tomorrow's quantity

• Goal: To show how simple logic can guide day-to-day business decisions.

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Integrating Feedback into the Model

• Once you have a script:

• You iteratively improve it based on user/business feedback.
• Add new features: data saving, discount logic, multi-day history.
• This process is how software evolves alongside business needs.

• Tip: Next weeks, we’ll talk about methodologies (e.g., Agile) and
version control (Git) to manage these iterations effectively.

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Summary of Week 4

• Key Point: Programming underpins many aspects of business model

development—automation, analytics, logic.
• Examples: E-commerce cart, sales data analysis, inventory system,
mini-bakery scenario.
• Takeaway: Even simple scripts can bring real value to a business
model.

• Exercise: Reflect on your own business contexts or ideas.

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Next Steps & Homework

• Complete the micro-exercises (Order Calculation, Mini Sales Report,

Bakery Script).
• Upload or share code on the forum
• Prepare any questions for the live session.

• Next week: “Web Development for Business”

• Come to class ready to discuss or debug anything that stumped you

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