UNIVERSITY OF SOUTHERN MINDANAO
Technopreneurship
ES 223
Module 5
Module 5: Business Model
and Plan
• Business Model
• Business Plan
• Lean Canvass
Business Model and Plan 2
Lecture 1: Understanding
Business Model
ILO 1: By the end of the learning experience,
students must be able to:
✓Understand Business Model
Business Model 3
Business Model
Scope: This represents the broader concept of the
business's structure and its fundamental modus
operandi. It's an overview of how the business
plans to function at its core, capturing, delivering,
and creating value.
Objective: Its primary aim is to define the method
through which the company creates, delivers, and
captures value. It's about answering the "What,
Why, and For Whom" of the business.
Business Model 4
Business Model
Flexibility: Given its higher-level perspective, the
business model is often more adaptable. As market
conditions change, customer preferences evolve,
or new opportunities emerge, the business model
can be adjusted to pivot or capitalize on these
shifts.
Seeking Investments: Investors will want a
snapshot of your business's core. They want to
know why your business exists and how it stands
out. Thus, presenting a clear business model is
paramount.
Business Model 5
Business Model
• Business model
- The process of business model construction and
modification is also called business model
innovation and forms a part of business strategy
Business Model 6
Business Plan
- a comprehensive document that outlines the
goals, objectives, strategies, and tactics of a
business. It serves as a roadmap for the company's
operations and helps guide decision-making.
Scope: Business plans typically cover various
aspects of the business, including executive
summary, company description, market analysis,
marketing and sales strategies, operations plan,
management team, financial projections, and
funding requirements.
Business Model 7
Business Model
Commonly used:
1. Manufacture – a company that produces goods
or products from raw materials or components.
e.g.
• Nike (produces athletic footwear and apparel)
• San Miguel Corporation (Produces various
products including food and beverages such as
beer, processed meats, and snacks.)
Business Model 8
Business Model
2. Distributor – a middleman or intermediary that
buys products from manufacturers in bulk and
sells them to retailers or other businesses.
e.g. Universal Robina Corporation (Jack 'n Jill,
Great Taste, C2, and Robina Farms)
3. Retailer - a business that sells goods or
products directly to consumers for personal or
household use.
e.g. SM Supermalls (offering a wide variety of
products and services to consumers.)
Business Model 9
Business Model
4. Aggregator – a platform or service that collects
and organizes information, products, or services
from multiple sources into a single unified platform
e.g. Angkas (An app-based motorcycle ride-hailing
service that aggregates motorcycle drivers and
matches them with passengers.)
5. An e-tailer, or electronic retailer - is a business that
sells goods or products exclusively through online
channels such as e-commerce websites or digital
marketplaces.
e.g. Lazada, Shopee
Business Model 10
Business Model
6. Franchise - a business model in which a
franchisor grants the rights to operate a
branded business to a franchisee in exchange
for fees or royalties.
e.g. Jolibee, Mc Donald’s
6. Bricks and Clicks - also known as omnichannel
retailing, refers to businesses that operate both
online and offline operations, which typically
include a website and a physical store.
e.g. The SM Store, Toy Kingdom, Rustan’s
Business Model 11
Business Model
8. Freemium - a business model in which a
company offers a basic version of its product or
service for free, with the option to upgrade to a
premium paid version for additional features or
functionality.
e.g. [Link] (A financial technology company that
offers a mobile wallet app for digital payments,
with basic features available for free and premium
features for additional fees.)
Business Model 12
Business Model
9. Subscription - A subscription business model
involves offering products or services to
customers on a recurring basis in exchange for
a subscription fee.
e.g. Netflix
9. SAAS - Software as a Service (SAAS) is a
software delivery model in which software
applications are hosted on cloud servers and
accessed by users over the internet on a
subscription basis.
e.g. DropBox, PayrollHero
Business Model 13
Business Model
11. Marketplace - is a platform or venue where
buyers and sellers come together to exchange
goods, services, or information.
e.g. OLX Carousell Philippines (An online
marketplace where users can buy and sell a wide
variety of new and secondhand items, ranging
from electronics to clothing to home goods.)
Business Model 14
Lecture 2: Lean Canvass
ILO 1: By the end of the learning experience,
students must be able to:
✓Understand and apply Lean Canvass Model
Lean canvass Model 15
Business Model Canvass
- a strategic management and entrepreneurial tool.
It allows you to describe, design, challenge,
invent, and pivot your business model.
- a simple document that can help you cover the
different parts of your business. This includes
your offering in terms of product or service, your
customer segments, your distribution channels,
your finances.
Business Model 16
Business Model Canvass
- Why use Business Model Canvass?
• Map Existing Business Models - Visualize and
communicate a simple story of your business
model.
• Design New Business Models - Use the canvas to
explore new business models whether you are a
start-up or an existing business
• Manage a Portfolio of Business Models - Use the
canvas to easily juggle between "Explore" and
"Exploit" business models.
Business Model 17
Lean Canvass Model
Lean Canvass 18
Lean Canvass
1. Problem - identifies the top problems or pain
points that your target customers face.
2. Solution - outlines your proposed solution to
address the problems identified in the previous
section.
3. UVP - communicates the unique benefit or
advantage that your solution offers to
customers compared to alternatives.
4. Existing Alternatives - identifies the current
alternatives or solutions that customers are
using to address their problems.
Lean Canvass Model 19
Lean Canvass
5. Channels - various marketing and distribution
channels through which you will reach your
target customers.
6. Revenue Streams - describes how your business
will generate revenue from your solution.
7. Cost Structure - describes how your business
will generate revenue from your solution.
8. Key Metrics - the quantifiable indicators that
you will track to measure the success and
performance of your business.
Lean Canvass Model 20
Lean Canvass
9. Unfair Advantage - This section highlights any
unique advantages or barriers to entry that your
business has over competitors.
10. Customer Segment - specific customer
segments or groups that your solution targets
11. High-Level Concept- provides a brief overview
or elevator pitch of your business idea. It
summarizes the problem, solution, and unique
value proposition in a concise and compelling
manner.
Lean Canvass Model 21
End of Topic
Thank you
Competitive Advantage 22