The Business Model Canvas (BMC) forms a powerful framework for businesses looking to innovate or assess their current business model. In this article, we dive deeper into one of the 9 elements, the key activities Business Model Canvas building block. We learn you why it is important to pay attention to the core activities of your company. Also we provide some interesting key activities examples. Are you ready to get inspired?
Key activities are the most important actions that a business must take to operate successfully and deliver its value proposition. These activities are crucial for creating, delivering, and capturing value. They can vary significantly based on the type of business and its specific needs.
Paying attention to the key activities Business Model Canvas building block is vital for success. Here’s why it matters:
Operational efficiency: Understanding which activities are most important helps a business optimize its operations, leading to reduced costs and increased productivity.
Value delivery: Key activities are directly related to how value is delivered to customers. By focusing on these activities, businesses can improve customer satisfaction and loyalty.
Competitive advantage: Identifying and honing in on unique core activities can help a business differentiate itself from competitors. This can create a unique position in the market that competitors may struggle to replicate.
Resource allocation: Knowing your most important activities allows for better allocation of resources. Businesses can invest more time, money, and effort into the activities that will yield the highest returns.
Adaptability: In a constantly changing market, understanding core activities allows businesses to be more agile. They can quickly adjust their operations to meet new challenges and opportunities.
In the Business Model Canvas key activities are classified into different types. Here are the common categories:
Production activities: These are activities related to the creation of products. For example, a bakery focuses on baking goods, ensuring quality and consistency in production.
Problem-solving activities: This involves activities that solve specific customer problems. A consultancy firm, for instance, engages in research and analysis to offer tailored solutions to clients.
Platform/network activities: These activities are focused on maintaining and enhancing platforms or networks. For example, social media companies continuously improve their platforms to keep users engaged and attract advertisers.
Marketing and sales activities: Activities aimed at promoting products and acquiring customers fall into this category. For instance, an e-commerce store might focus on digital marketing campaigns and social media outreach.
Customer support activities:These activities ensure customer satisfaction and support. For example, a software company invests in customer service to assist users in resolving issues promptly.
Understanding these categories helps businesses identify their core operations and prioritize accordingly.
You can follow the following steps to identify the most important key activities for your company:
Start by understanding your value proposition. What unique problem do you solve for your customers? Identify the success factors in your market that help you stand out.
Look at all the tasks required to make your business model work effectively. Break these down into specific activities, from production to customer service.
Decide which activities you will handle in-house and which ones can be outsourced. This helps you focus on your core strengths while leveraging external expertise.
Give priority to the activities that will have the most significant impact on your business model. Focus on what drives value and improves customer satisfaction.
Identifying key activities is not a one-time task. Regularly review and adjust them as your business and market evolve. Stay adaptable to maintain effectiveness.
Here 3 key activities examples of companies from different industies. Each example has been worked out by filling in the key activities Business Model Canvas building block.
Type of business: Mobility platform
The first key activities example is Uber. Uber is a ride-sharing platform that connects drivers with passengers through a mobile app. Focussing on the following key activities helps them ensure a smooth experience for both drivers and riders.
Tip: Learn more about the Uber business model in this deepdive
Type of business: Impact-oriënted clothes retailer
The seconde example is Patagonia. Patagonia is a leading outdoor apparel brand known for its commitment to environmental sustainability. The following key activities helps them with their mission to be a leader in sustainable business practices,
Tip: Learn more about the Patagonia business model in this deepdive
Type of business: Waste management
The last key activities example is Renewi. Renewi is a waste management company dedicated to turning waste into resources. The key activities Business Model Canvas buildingblock consist the following:
The key activities building block in the Business Model Canvas is not static; it changes over time. As your business grows and the market evolves, your core activities may need to adapt. For example, you might need to add new tasks to keep up with customer demands or improve efficiency. Regularly reviewing and updating your core activities ensures that your business stays relevant and competitive. Staying flexible allows you to respond to new challenges and opportunities in your industry.
Key activities are interconnected with other components of the Business Model Canvas. Understanding these relationships helps businesses create a cohesive strategy. Here are some examples:
Key activities are closely linked to your value proposition. The activities you perform are essential to delivering the value you promise to your customers. For example, if your value proposition is fast delivery, your core activities might include efficient logistics and order processing. These activities ensure you meet customer expectations.
Key activities depend on key resources. Resources are the assets you need to perform your activities effectively. For instance, if a company’s key activity is product development, it will need resources like skilled employees and technology. Without the right resources, your core activities cannot succeed.
Core activities often involve collaboration with key partners. Partners can help you perform activities more efficiently or provide specialized expertise. For example, if your key activity is waste recycling, you might partner with local recycling facilities. This partnership enhances your ability to deliver value while sharing costs and risks.
We have created several deep dives into different aspects of the Business Model Canvas. Discover insights on:
We hope that our key activities Business Model Canvas deepdive has provided you with valuable insights. If you found this article helpful, please share it with your friends, colleagues, and others who could benefit from it!
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