UNIVERSITI TEKNOLOGI MARA

FAKULTI KEJURUTERAAN KIMIA

TECHNOLOGY ENTREPRENEURSHIP
ENT600

BUSSINESS MODEL CANVAS

(SmartPen)

NAME : MHD BADHRUL BIN BAHAR

STUDENT ID : 2016589039

PROGRAMME : CHEMICAL ENGINEERING

PROGRAMME CODE : EH220

COURSE : TECHNOLOGY ENTREPRENEURSHIP

COURSE CODE : ENT600

SEMESTER :7

GROUP : EH2207A

SUBMITTED TO
ASSOC PROF DR ZARINA SALLEH
SUBMITTION DATE
13TH MAY 2020
BRIEF DESCRIPTION OF THE PRODUCT
1
1.0 INTRODUCTION
2
2.0 BUSINESS MODEL CANVAS FOR SmartPen
2.1 Value proposition
2.2 Customer Segment 10-14
2.3 Channel
2.4 Customer relationship
2.5 Revenue stream
2.6 Key Resources
2.7 Key Activities
2.8 Key Partner
2.9 Cost Sturcture

3.0 CONCLUSION 15
 BUSINESS MODEL CANVAS
REPORT

NAME OF PRODUCT: SmartPen

BREIF DESCRIPTION OF THE PRODUCT:

Have you ever heard about smart pen? Based on the research and observation, only small
amount of people acknowledge about the invention of this smart pen. As a student, pen is really
needed in our daily life. We use pen to jot down our notes, to complete our tutorials, assessments and
many more. Since people started to use goose feather for writing, then the pen is improved through the
cartridge and now reaching the simple ball pen, the way people wrote had passed through a major
evolution. It is now possible to have a pen with more features that comes with more useful functions.

I decided to invent SmarPen as my product. SmartPen is not like the other pen. We developed new
special features and that makes it different from the other pen so that it could be used by customer
with satisfaction. Among the features that we developed are it comes with USB drive, laser pointer
and flashlight. The SmartPen is an improvement product by making adjustment or
modification to the classical pen that have only one function which is to joted down the
notes
1.0 INTRODUCTION

Business Model Canvas (BMC) is a strategic management tool to quickly and easily define and
communicate a business idea or concept. BMC can clearly show our business idea on a piece of
paper that allows us to visualize the business model, detect weaknesses and test and if use carefully
can help us to the extend whether the idea for the businesses can work or vice versa. BMC usually
produce by the brainstorming of a group of people or team which focuses on test alternatives for the
business idea and find the new combination possibilities where the idea are sketch and build segment
by segment. It is usually the visual chart with the “nine elements” consist of value proposition,
customer segment, channel, customer relationship, revenue stream, key resources, key activities, key
partners and cost structure.

The BMC report on my product which is SmartPen can act as the business plan. The goal is to look
beyond spreadsheets, market research and financial projections. It is interesting to note that although
the main focus of the BMC is to establish the foundation of the business model, it also may helps in
enhancing my business as it evolves. There are many advantages on BMC I can take for my new idea
product which is, I have an overview of what my business model really is, I can also cut which
activities are not so important. Moreover, by using BMC, I can clearly stacking my idea into a cleared
structured form. In other words it can offers me an overview of the business idea from every
perspective, thus make it easier for my company executing the project of producing the SmartPen
product.
2.0 The Business Model Canvas (BMC) for SmartPen

KEY PARTNERS (8) KEYACTIVITIES (7) VALUE CUSTOMER CUSTOMER

-Supplier for raw
component/materials
-Research and development
partner
-Marketing partner
-Marketing
-Reseacrch and Development
-Product manufacturing
-selling and delivering the product
-Networking
KEY RESOURCES (6)
-Integrity and quality worker
-Facility to manufacture the
product
-Patent or copyright of the
product
PROPOSITION (1)
-Newness to the existing classical
product
-Simple and easy to use while
maintaining the effective
performance of product.
-Aesthetic element on the design
of the SmartPen
-Affordable price for the targeting the product by advertising
customer and
RELATIONSHIP (4) SEGMENT (2)
-Membership discount
-Targeted Customer
-Promotion to the loyal Customer (Student, lecturer,
and retailer businessman)
-Call center/Personel Assistant -Potential age
(21 years old- 50 years old)
-Communities of SmartPen
-Gender
CHANNEL (3) (Both male and female)
-Channel to raise awareness of
-Potential customer
( Educational and
-Channel to purchase the product business)
-Channel to deliver the product
-Channel to evaluate the product
after sale.

COST STRUCTURE (9) REVENUE STREAM (5)

-Cost-driven structure -Retail profit / Product sale

-Additional Sale
Cost Characteristic
-marketing cost, salary cost, rent, raw materials/component cost
2.1 Value Proposition

The value proposition is the segment that compelling about the proposition of the my products of why
do the target customer need to buy SmartPen, what value do the product deliver to the customer, what
is the problem that SmartPen tackles compare to existing similar product. For the SmartPen, there are
some value proposition that can be identified.

a) Newness to the existing product

Compare to the original classic pen where its function is solely to jotted down note, I have
been added some function which is specific to educational purpose. Some of the newness my
product is a laser pointer usually use for presentation as an eye catching device. Moreover,
SmartPen also have USB-drive to save the document, it is very useful either for students or
working people. The USB-drive on SmartPen have variety of capacity (8 GB, 16 GB, 32GB)
that depends on the price.

b) Simple, easy to use and effective product performance.

Eventhough SmartPen has many function, it is easier and simple to use. The product pen is a
twisted type. With a twisted ballpoint pen, you'll never have to worry about losing or breaking
a pen cap. These twisted features also suitable for our physical design of our smartpen since it
has a combination of electronic part and non- electronic part. On the power supply of the
electronic part (laser pointer and flashlight) of SmartPen, the product promotes a rechargeable
battery by using USB port.

c) Aesthetic element on the design of SmartPen

For the new product development, i am emphasizing an aesthetic element into SmartPen
product design in order to give an attractive visual or good first impression about my product.
These Aesthetic designs will influencing on how people think and feel how much pleasure we
feel from the product

d) Affordable price
Even though the product having the multiple function with an aesthetic design that exudes its
elegance and luxury, the price of the SmartPen is still affordable to the target customer with
respect to its function.
2.2 Customer Segment

Customer segment is the part of where it defines the groups of people or organizations you
aim to reach or serve. Every company needs profitable customers in order to survive. Using
the business model canvas, I can determine what my customer segment will be, who are the
customers, what do they think and fell about the product

a) Targeted Customer
The targeted customer for this customer is the University student, lecturer and may be
business man

b) Potential age for targeted customer

Start with the university student’s age around 21 years old until the age of senior
lecturer around 50 years old

c) Gender for targeted customer

Can be used to both male and female

d) Potential customer needs

The product may be need in educational study and also business section as long as
involved the presentation activities.
2.3 Channel

Channel segment in BMC describing how can my product reach the customer segment to deliver then
value proposition. It is important for all the company to understand which channel is best to reach the
company. . I have been divided each channel for making sure how my product reach my targeted
customer.

a) Channel to raise awareness

This channel is the first phase on how my company can pull the targeted customer awareness of
my product. For this product, the product advertising is one of my choices. By fully utilizing the
social media such as Facebook and Instagram. My targeted customer may know that this product
is available and ready to be purchased.

b) Channel to purchase the product

This channel is when the customer is interested and ready to buy my product. Some channel that I
used may by online purchasing the SmartPen, my product would be available in the online retailer
such as Shoppe and Lazada. The second one is, the intrested customer can go into my company
website to purchase.

c) Channel to deliver the product

This channel is on how my product would be delivered to my customer, I would prefer the courier
such as Pos Laju and other same company that works on delivery services. Moreover, by direct
sale on the shop by our retailer that can be called as the our product distributor.

d) Channel to evaluate after sale.

This channel channel is on how my customer evaluate or give the feedback on the product.
Whether it will be on our website or call center at the company. My company also having
customer assistant to give the new customer on how to use SmartPen properly.
2.4 Customer Relationship

Customer relationship is one of the 9 blocks in the BMC. This section is discussing on the relationship of
the company with the customer upon during or after buying the product. This segment is important as the
current customer that are satisfied to the product or services may be become our promoter to other new
customer.

a) Membership Discount
The customer that been applied to become member with the company would get discount. The
retailer that act as our product distributor also automatically become the membership.

b) Promotion to the loyal customer

My company offer the sale or promotion to the loyal customer that buy the product more than
once.

c) Call center/Personal Assistant

May help the customer upon handling the SmartPen wisely, instant reply to the question from the
customer.

d) Communities of SmartPen
Forming a communities of customer that use the SmartPen so that they can keep up with the new
update or any information regarding to the product from the company.

2.5 Revenue Stream

Revenue stream is on how my company generate cash or profit from this product. For the SmartPen, one
of the main revenue stream is on;

a) Retail profit/product sale

Every unit of SmartPen sold is consider as cash profit, that exclude the other cost such as
operating cost, acquisition cost.

b) Additional sale
Spare-part sale of the SmartPen, since it is consist of electronics parts (laser pointer, flashlight,
USB-drive) and non-electronics part (replaceable ink), all the part is available individually
considering if the product having malfunction or broken.
2.6 Key Resources

Key resources are important to create value for the customer, it is also considered as the assests to a
company that are needed to sustain and support the business. The key resources may vary with human,
financial, physical and many more. For this company, some of the key resources are;

a) Integrity and quality worker

To keep the product meet the expectation of the customer, a good attitude worker is a must.
The employee also need to be trained accordingly and has the skill. Moreover, to avoid the
potential business dishonesty, an employee must having a sense of integrity.

b) Facility to produce the product

The company also have the production facility, where the SmartPen is build, install and repair
here. In other words, This facility is an important part in order for the business running well

c) Patent or copyright of the product

SmartPen having the copyright or patent gives the company the right to stop others from
copying, manufacturing, selling or importing the invention without the permission. My
company also get protection for a pre-determined period, allowing the competitors at bay.
2.7 Key Activities

Key activities are the most important activities in executing the company’s value proposition. The
question on what key activities do the SmartPen value proposition require, what key activities do
product’s channel require as well as what key activities do the targeted customer relationship require are
an important thing in order to fully understanding the my company key activities to produce our product.
Some of key activities that been identified are;

a) Marketing
In order to reach our targeted customer, the need of marketing is the first step to our key activities
because marketing functions start from identifying the consumer needs and end with satisfying the
consumer needs. Marketing also function as a gathering the market info and analyzing that info.
Market planning and strategy formation. To assist in product designing and development also
comes under the marketing functions

b) Research and development

Upon gathering and analyzing the market info, research and development can be executed in
order to meet the satisfaction between the company and the customer. The product design and
function usually respected to the research and development of each company.

c) Product manufacturing
The SmartPen is manufacture and design in our facility by the workers as the end product.
Usually, the product manufacturing execute after the marketing and research and development is
done.

d) Selling and delivering the products.

When the product is finished and the customers are interested to buy, the company needs to
execute the product selling and delivery. In my company, we use the retailer as a product
distributor and courier as delivery services for the product to go to the customer or consumer.

e) Networking
Networking is also important to the company running the business, raw materials supply and
delivery services as well as finding the right partner for research and development is the key
aspect for my company to expand the networking.
2.8 Key Partners

In order to optimizes operations and reduce risk for the business, my company involved in the relationship
business, governmental, non-government or can be the non-targeted customer entities in order to help my
business model work. Some of the key partners for my company are;

a) Supplier for raw component/materials

In order for my company focuses on other activities such as manufacturing process, the
partnership for the component supplier must be chosen accordingly and carefully. By doing so,
the process of manufacturing can be done smoothly.

b) Research and development partner

My company been try to work together with the government authority in order to help the product
manufacturing, design and function at the best and peak condition.

c) Marketing partner
My company been joined venture with other vendors to develop online platform channel for the
customer to purchase the product such as Lazada or Shoppe.
2.9 Costs Structure

This final segment defines all the cost and expenses the company will incur while operating the business.
This segment also determined whether the project can proceed or canceled. There are two main categories
for the cost structure which is cost-driven and value-driven. My product been fall into cost-driven since
our targeted customer is focusing the student where they did not have much money. Cost-driven defined
as the cost structure that focusing on minimizing the costs of the product or services as much as possible.

There some cost characteristics when executing this business which is;

a) Fixed cost
The example of this cost is rent of the facility manufacturer and salary of the employee or worker.

b) Variable cost
Cost for the raw component or raw materials that depend on the economical factors. Another
example of the variable cost is marketing cost.
3.0 Conclusion

As a conlusion, the Business Model Canvas (BMC) is an important thing to execute as it guide the
company thinking through each of the key segment or blocks for devising a business model. Using a tool
like the Business Model Canvas can serve to unite my company under a clear visualization of where your
organization sits today and where it can be tomorrow. For example, what is the strongest revenue streams
are and how they can complement each other or closely examine the value propositions and discover
better ways to position the product or service to customers. Use customer segments to find out exactly
who is the customer the company looking for and how to approach them more effectively.
4.0 APPENDICES