LDT BMC Analysis Report-2

LDT2037
DESIGN THINKING FOR STRATEGIC COMMUNICATION

FACULTY OF APPLIED COMMUNICATION
(FAC)

TRIMESTER 3, 2021/2022 SESSION (T2130)

ASSIGNMENT 1
BUSINESS MODEL CANVAS ANALYSIS REPORT

PREPARED BY: STUDENT ID
1211305894
STUDENT NAME 1191102620
SOFEA ADLINA BINTI SUHAIMI
WAN NUR SARAH JASMINE BINTI WAN NADZREE

PREPARED FOR:
MS NURAFIQ INANI

ASSIGNMENT SUBMISSION DATE:
28 NOVEMBER 2022

Business Model Canvas

Introduction

A business model canvas is a one-page overview of the high-level strategic details required to
successfully launch a business. Business model expansion can be started with the use of the
strategic management tool known as the Business Model Canvas. Alexander Osterwalder's
initial proposal for the nine "building blocks" of the Business Model canvas was made in
2005 based on his past research on business model strategy. New canvases for specialised
niches began to appear around 2008. With the help of the template, any business may swiftly
outline its business model. The template consists of nice boxes, which are the Key Partners,
Key Activities, Key Resources Value Propositions, Customer Relationships, Channels,
Customer Segments,Cost Structures And Revenue Streams.

The sustainability project that we chose is sustainable transport. To start with this project we
have decided to partner up with Beam Mobility to provide faster and accessible transportation
for residents in Cyberjaya, most importantly the staff and students of Multimedia University
(MMU) Cyberjaya. Beam is the biggest shared micro mobility company in Asia Pacific,
which was founded in 2018. Their main goal is to turn little drives into better rides and make
cities flow better for everyone. With operations in Australia, New Zealand, Indonesia, South
Korea, Turkey, Thailand, and Malaysia, they are leading the way in the fastest-growing
industry in the world for shared micro mobility. They work closely with cities to develop
fleets of autonomous tiny electric vehicles that provide citizens with a new, cost-effective,
and environmentally friendly method of transportation. They are now operating in Turkey,
Indonesia, and will soon be moving to Japan.

The reason we chose to work with Beam is because we want to make the world a better place.
Beam Mobility, is a pioneer in sustainable micro mobility, is trying to expand the sharing
economy in the city. This will help us promote values that are more centered on the
community, such as effective resource allocation and cooperative consumption.

Key Partners

We will be working in collaboration with the Multimedia University (MMU) to improve the
city's transportation infrastructure by strengthening the connection between shared mobility
and the university. Beam Mobility wishes to improve customer convenience by allowing
them to arrive at their destination faster while reducing fuel waste. As a result, Beam
Mobility will offer special discounts to MMU students who enter their student ID number.
MMU is thus able to introduce a sustainable mode of transportation that has been proven to
be a next-generation mobility option. As a matter of fact, Beam Mobility will be able to
expand the shared mobility market by increasing connectivity with universities, as well as
contribute to the establishment of a more orderly shared e-scooter culture.

Besides working with MMU, we will also be working with the Students' Representative
Council (SRC) . They are a council or group that advocates on behalf of students at a
university and is typically made up of students as members. Hence, they are the best people
to help spread the awareness of shared mobility and the benefits for students of MMU
through events. Since they are usually made up of members who are also students of MMU,
they are able to find a better approach on how to encourage more students to use Beam
Mobility around campus.

In addition, we will collaborate closely with social media influencers to reach a wider
audience. This effort is made in case some students didn't hear about the news that MMU and
SRC were promoting. These social media influencers will nevertheless help them gain
attention. Since everyone undeniably spends the most of their time on social media, in this
situation they won't miss out on the information. They will eventually come to these
messages posted by the influencers. By sharing videos of themselves using the e-scooters on
the MMU campus and a lesson on how to use the programme and use the student discounts
for MMU students, they will aid in our promotion.

Key Activities

Beam must complete key activities in order to function. Furthermore , it is the most essential
point Beam must do in order to provide value propositions to customers. According to the
research of a scholar named Charles B. Stabell, key activities can be divided into three
categories: production, problem solving, and platform/network.

One of the most important things for Beam to do is to write a proposal. Creating one to send
to the official Beam headquarters as well as the Multimedia University (MMU). Outline the
mission and vision for bringing Beam to campus. Following that, the budget for overall
scooters that Beam must provide for students on the Cyberjaya campus.

After developing a budget, receiving a quotation, and finally receiving approval from
higher-ups, it is possible to begin identifying resources and transferring the project to the
Multimedia University campus in Cyberjaya.

Value Propositions

A value proposition that we promise our customers is that by having Beam in MMU, their
staff and students can lessen the time spent traveling from one place to another around
campus. This is because the Multimedia University is quite big so, from one faculty to
another could take up to 10 to 15 minutes. Not to mention also the hot weather in Malaysia
some might have to stop by shops to get themselves a drink.

Additionally, MMU mandates that students have access to a reliable, efficient, and
sustainable transportation system. Students who don't have access to a vehicle are especially
likely to use public transportation to go around. Their current choices are the Grab and the
MMU bus shuttle. But because the bus shuttle operates on its own schedule, riders who miss
the first rotation could have to wait for the second and risk arriving later. Grab is inconsistent
in its operations. On some days, there are many drivers in the area, but on other days, it may
take a while to find a driver. Students who reside off campus can therefore use BEam
Mobility to simply register on the app and rent e-scooters to get to their faculty. They are able
to save time as a result, and they won't have to worry if they miss the MMU bus shuttle or
having to book a grab.

In addition, students should conserve their energy and time so they can concentrate better and
do better on their tests. To put it into perspective, even when you are not exhausted, it can be
challenging to pay attention to a two-hour lecture because students frequently become
distracted by other activities. It is more difficult, though, if they are exhausted and running
late for their classes. This is due to the fact that they will need to stop and catch their breath
as they walk from one end of the faculty to the other before entering their class. Additionally,
they will need to take time to collect their breath when they arrive late for class and will need
to work hard to comprehend the lecture in order to catch up with the class. Therefore, it
would already take additional time to have to refer back to the slides and try to understand
that. As a result, they will experience anxiety during the class due to these.

In addition, it is efficient and convenient for our customers. Our first priority is also to keep
them safe. We recognise that some people might feel safer in a car than on a bike, where
accidents are more likely to occur. Because of this, we will include a gadget with Beam
Mobility that can follow your whereabouts and detect if you have been in an accident. The
moment an impact is made, a sensor might be activated. In addition to alerting the
responsible party, the gadget on the e-scooters makes it easier for the responsible party to find
the user. Additionally, a specific lane will be made available for e-scooters to utilise so they
can avoid riding on the road in order to ensure their safety. So there is less chance that they
will have an accident.

Customer Relationships

For shared e-scooter use by MMU students, faculty, and staff, we intend to upgrade the
on-campus infrastructure. Based on student operation data, a recommended parking location
will be established in high-demand areas where they can obtain parking rewards, while a
discounted rate system will be applied to e-scooters that started driving on campus. so that
students can access the campus more quickly and affordably. In this manner, Beam Mobility
can aid in the spreading of the sharing economy throughout society and increase its socially
beneficial effects. By combining all these efforts and working together, we think we can
create a real sharing economy in our society that will function better than the market
economy.

Other than that, we will offer a feedback form to customers after their ride in order to develop
our relationship with them. We will be able to better understand our customers' demands and
make changes as a result. Since they would be the ones using it every day, we should
consider their suggestions since they should be better knowledgeable about how to make the
ride more comfortable and simple for them. Since our main objective is to make their rides
more convenient so that they can promote the use of sustainable transport, this will in a
manner show to them that their opinions do count.

Customer Segments

All classes were conducted online following the Covid-19 outbreak, and only lately, with the
announcement of the epidemic, did things start to return to normal. We no longer need to
wear face masks when we travel, and classes are now all conducted physically, so we can no
longer attend them in the comfort of our own homes. Students must get up early since they
must take into account getting ready and the walking distance, particularly for those who live
in dorms or close to campus without access to transportation. Since it can be quite a distance
from their home to each faculty and the idea of arriving to classes late is unacceptable, it is
evident that the majority of students are lazy. Therefore, students can better manage their time
with Beam Mobility, and if they oversleep, it won't be a problem because they still have a
chance to go to their classes on time.

Furthermore, some people prefer not to drive on campus because they want to save fuel. As
we all know, fuel is quite expensive nowadays, so people would rather walk around campus.
Beam Mobility has gathered data through public opinion and surveys to learn more about
how each driver on the road can contribute to air pollution, no matter how small their
contribution vehicles are, to lowering carbon emissions. Beam Mobility informed survey
respondents that the average fossil-fueled vehicle emits 269 grams of CO2 per kilometer
traveled. Beam Mobility's shared e-scooter, which emits no CO2, stands out in stark contrast.

Aside from that, we have customers who live off campus and refuse to walk there. Because of
the distance and the unpredictable weather, it could be scorching hot one minute and raining
heavily the next. Some may believe it is a waste of their time and effort. There is also the
MMU bus shuttle, which has its own rotation schedule. If students miss the first rotation, they
might still have to wait for the next one, which would be inconvenient for them. Imagine
dressing up for an hour just to walk to class in the blistering heat. One might end up looking
sweaty and unattractive as a result. With Beam around the corner, they may be able to attend
their classes on time while still looking attractive in a way it could also help them boost their
confidence in themselves.

Key Resources

Key resources are the most important assets in the Business Model Canvas (BMC). It enables
Beam to develop and deliver a value proposition, enter markets, generate revenue, and
maintain relationships with their customer segments. Physical, intellectual, human, and
financial resources are the four types of key resources. Manufacturing plants, machines,
buildings, systems, vehicles, point-of-sale systems, and distribution systems are examples of
physical assets included in the Physical category. Then there's creativity and experience in the
Human category. The following category is Intellectual, which includes the brand, proprietary
knowledge, patents, and partnerships. Finally, there is the financial category, which includes
cash, credit, and stock.

One of the key resources that Beam is currently using is Intellectual. Beam is currently under
the supervision of Alan Jian and Deb Gangopadhyay, the CEO of Beam Mobility Holdings.
Beam was founded originally in 2018, it is Asia’s largest shared micromobility company.
Shared micromobility is among the world's fastest-growing industries, and Beam is at the
forefront in Asia Pacific, with operational processes in Australia, New Zealand, Indonesia,
South Korea, Turkey, Thailand, and Malaysia. With their fleets of self-driven small electric
vehicles, they provide citizens with a secure, affordable, and sustainable new mode of
transportation in collaboration with cities. Working closely with heads of Beam will ensure
that the planning phase goes smoothly.

Other than that, another key resource is the Physical category. MMU will have a specialized
area called Campus Scooter Holders where the Beam's scooters will be properly stored. All
maintenance and contact information will be posted at the stall. Customers who wish to rent a
scooter or file a complaint can do so at the booth.

Channels

A channel is a path through which a product or service travels until it reaches its final
intended consumer. This also explains how payments from the end user to the first supplier
are made. Wholesalers, retailers, distributors, and even the internet can all be considered
channels. It can be short or long, depending on how many intermediaries are required to
deliver the product or service.

Direct channels and indirect channels are the two types of channels. A direct channel allows
the consumer to buy directly from the manufacturer. However, an indirect channel allows the
consumer to purchase the products from a wholesaler or retailer. Products sold in traditional
brick-and-mortar shops are typically sold through indirect channels.

Beam has a variety of channels. The main access to Beam is their mobile application where it
can be easily downloaded at the App Store, both in iOS and Android. This makes it
consumer-friendly because everything you need to start off is from the application itself.
There is no hassle or need to contact a direct worker for consumers to start operating the
scooters. Not only can it start off your journey, any questions and related information can be
found in the application too, which is super convenient and user-friendly.

Those who haven't installed the app yet but are interested in doing so can go to Beam's
official website and/or their official Instagram account, where they will post daily updates.
They are approaching more potential customers through an online social media platform.
Because Beam collaborates closely with MMU's Students' Representative Council (SRC),
any relevant information will also be posted on their Instagram account. There are numerous
ways for Beam to gain access to a wealth of information.

There is also a secret and special discount available to those who stay on Beam's or SRC's
social media platform, such as "Free 1-hour ride with the code, "HOUR”". Because of the
very appealing discount code, this will help gain more customers.

Cost Structure

The final and most important step is the cost structure, which represents all of the costs and
expenses incurred by Beam while operating their business model. It is divided into two cost
structures: value-driven and cost-driven. Value-driven cost structures are concerned with
adding more value to the product rather than producing it at the lowest possible cost. A
cost-driven cost structure, on the other hand, focuses on minimizing the costs of the product
or service as much as possible.

Beam is more value-driven because the products they produce have more value. As a result,
the price is considered quite high. Beam's most expensive cost is the use of machinery and
raw materials, as good machinery is required to produce high-quality products.

Fixed cost, variable cost, economies of scale, and economies of scope are all characteristics
of cost structures. A fixed cost is an amount that does not change when the quantity of
products or services sold decreases or increases. It is also the organization's expenses that
must be paid. A fixed cost is typically determined by a contract agreement or schedule. This
includes rent and management salaries, as well as insurance, property taxes, electricity, and
Internet access. While variable costs are expenses that vary in proportion to production
output, they are affected by production volume. These are the goods that are directly used in
serving customers and vary in terms of total sales. Consider the costs of the raw materials and
packaging. Variable costs can reduce the breakeven point.

After which, most large companies with a high output quota benefit from economies of scale.
Essentially, this is a cost advantage that large corporations can enjoy due to their size, sheer
volume of output, or scale of operation. Finally, economies of scope refer to the cost savings
that occur when a company invests in multiple markets or expands its scope of operations. If
a company chooses to increase the number of goods it produces, the average cost of
production is expected to fall.

Revenue Streams

Revenue is the amount of money brought into a company by its various business activities
such as product and service sales. A Revenue Stream represents the money earned by a
company from each Customer Segment. Most businesses require at least one significant
revenue stream in order to obtain funds. Pricing mechanisms for each revenue stream may
include fixed list prices, auctioning, bargaining, volume dependent, market dependent, or
yield management. A business model can generate transactional revenues from one-time
customer payments, such as sales, or recurring revenues, such as a subscription.

Revenue Streams can be created in numerous ways, such as Asset sales, usage fees,
subscription fees, lending/renting/leasing, licensing, brokerage fees, and advertising are all
ways to generate revenue streams. When selling ownership rights to a physical product, the
most commonly understood revenue stream is an asset sale. The sale of physical products
occurs when customers pay in cash or by credit/debit card for the scooter they rent from the
Beam application.

Following that, the usage fee is produced when clients use a specific service and pay a user
fee. For example, Grab Food or FoodPanda charge customers a delivery fee for food prepared
at a business outlet and delivered to the customer's location.

For volume-selling, Beam charges a fixed price for the products they sell. They do, however,
have a promotion strategy, such as a Birthday Promotion in which you can get a free 1-day
token to use the Beam scooter. Or any other type of special discount for any traditional
holiday. Customers can put in the code when they are in the Beam application.

References

Osterwalder, A. (2005) ‘What is a business model?”. Retrieved from:
https://web.archive.org/web/20061213141941/http://business-model-design.blogspot.com/20
05/11/what-is-business-model.html

Azman, T. (2022) Seremban Township Partners Beam Mobility for Sustainable Transport,
Beam. Retrieved from:
https://www.ridebeam.com/newsroom/seremban-township-partners-beam-mobility-for-sustai
nable-transport