BUSINESS MODEL CANVAS KEY ACTIVITIES: WHAT ARE THEY?

All business models call for you to perform a number of key activities. In?Business Model Canvas, key activities are item number SEVEN in building out your canvas.?These are the key activities you must DO in order to be able to deliver your value propositions, access your customer segments, maintain relationships and ultimately earn money.?

?In this article, we take a look at how to determine your key activities list for?Business Model Canvas?(BMC) and how they might differ depending upon your industry.

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Know Your Business Category

With Business Model Canvas, key activities include critical tasks your business must perform to support your value propositions.?This of course will largely be driven by the type of business and industry you are in.?So the first step is to take a look at the type of business you have.

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1. Production or Creation of Goods

Is your business built around goods???If you are producing, creating, or constructing a physical product, then yes. These key activities usually involve sourcing raw materials and manufacturing. Some of the key activities might therefore be involve quality and cost control. Employees will process them and distribute the final product. Here are some examples:

• A farmer that focuses on growing vegetables.
• A mobile phone manufacturer that makes phones.
• Any business where your customers pay for manufactured, produced, or grown goods.

If the production process is the main building block of your business, then you are in the “production or creation of goods” category.?Companies like Samsung and Tesla are famous examples of such businesses.

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2. Problem Solving

If you’re focused on individual customer problems and developing new solutions for those problems, then you have a “problem solving” business.?Examples of problem-solving businesses include hospitals, consultancies and often service organizations.?

According to BMC, problem-solving businesses are very knowledge intensive. Some of the key activities might therefore be for your research and development department. Knowledge management and continuous training may be typical key activities for such a business.

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3. Platforms and Networks

You may have a platform or network business if you provide software, a matchmaking service, or some form of a platform that allows people to conduct transactions.?Platforms often connect businesses to customers, enabling buyers to find goods and services.?Business Model Canvas even lists “brands” as a type of platform.?

eBay is an example of a platform and eBay‘s key activities would include maintaining its platform. Visa provides a credit card transaction platform for merchants, customers and banks.?Their platform management activities include maintaining the security and operations required for transaction processing.?Meta, LinkedIn and other social networking utilities are examples.?Platforms like Zoom have almost become networks in their own right.

Support Your Value Proposition

Now that you have clarified your business category, you can see how you are delivering value to your customers.?So, with your value proposition in mind (item number TWO in building your BMC), write down the key activities required to make your business model possible. Hint: also go through each of the SIX proceeding building blocks of your business model.?

?You have promised your customers something.?How can you ensure you deliver it??Articulate the exact steps needed to support each customer segment.?Draw your key activities from this list.?Here are some example questions:

• What actions are integral to building your platform, product, or service?
• What do you need to DO to distribute your product or service?
• What activities will allow us to acquire key resources?
• What activities allow us to maintain good customer relationships?
• What activities are mandatory for ensuring revenue streams? How often do you need to do these tasks?

?The key activities you need to perform will again vary depending upon your industry, your niche, and your business model.

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Example key activities for a production/goods business

In this example we will assume you are a supplements manufacturer.?Key activities might be:

• Do market research on quality ingredients plus studies that back them up.
• Use the studies to promote your products via influencers.
• Find a quality factory to make your ______________.
• Find a delivery channel that reduces % of goods damaged during transit (and the number of returns)
• Create a dunning system for your supplement subscribers.

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Example key activities for a problem solving business

In this example we will assume you are a hospital.?Key activities might be:

• Analyze significant quantities of supplies required due to COVID-19
• Research upcoming viral trends and increased staffing requirements
• Provide staff training on new procedures per CDA requirements
• Create post visit follow up program to improve patient outcomes
• Apply for government assistance program to bolster revenue streams

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Example key activities for a platform/network business

Next let’s look at network related key activities for a social media company...

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