1 Assignment 2: Business model analysis and patterns Course: MMST13017 Business of Digital Innovation, 2017 Term 1 Due date: 9:00 pm AEST, Friday of Week 8 Weighting: 30% Objectives This assessment item relates to the course learning outcomes 1, 3 and 5. Task This assignment requires you to describe and analyse the business model of an existing business using the Business Model Canvas. You must also write a report that explains the nine building blocks of your Business Model Canvas and discusses how your chosen business resembles one of the business model patterns described in chapter two of the textbook. Choosing a business The business that you select as the subject of this assignment must satisfy the following three conditions. 1. Digital media must be a central part of the selected business's operations. For example the business might sell digital products, it might provide digital services, or it might communicate and deliver its value proposition through digital channels. 2. The selected business must not be one that has been used as an example of the Business Model Canvas in class or in the textbook. 3. The selected business must show characteristics of one of the business model patterns that are described in chapter two of the textbook (Patterns), namely: Unbundled business models; Long Tail business models; Multi-Sided Platform business models; Free business models; or Open business models. Ineligible businesses and business types The following businesses may not be used as the subject of your assignment because they are used as examples of the Business Model Canvas within the textbook. Some of these businesses are also ineligible because digital media is not a central part of their operations.  Amazon.com  Apple  Car2go  Cirque du Soleil  craigslist.com  Dell  eBay  Facebook  Financial Times  Flickr  Gillette  GlaxoSmithKline  Google  Grameenphone  Innocentive  Lego  Lulu.com  Metro  Microsoft  Nespresso  Nestlé  NetFlix  Nintendo  Nokia  Peepoople  Procter & Gamble  RedHat  REGA  Skype  Sony  Swatch  Visa  YouTube  Zipcar.com The following types of businesses are also ineligible for the reasons described above. 2  Budget airlines  Private banking institutions  Mobile telcos  Free newspapers  Free mobile phones Business Model Canvas Chapter one of the textbook (Canvas) discusses the Business Model Canvas, which is a framework for describing, analysing and designing business models. Download the Business Model Canvas template in Microsoft Word format from the course web site. Use the template to develop a Business Model Canvas for your chosen business. Refer to chapter one of the textbook (Canvas) for the details of this process. Some research will be required to develop the Business Model Canvas for the business that you select. It might be possible to complete some components of the canvas using observation, but other components might be hidden from view, particularly the blocks on the left-hand side of the canvas: Key Partners, Key Activities, Key Resources and Cost Structure. In those cases, some research will be required to uncover the details. Obviously Google and other search engines can help with research, but don't overlook the electronic databases that you have access to through the CQUniversity Library at http://www.cqu.edu.au/library Note: The Business Model Canvas template supplied on the course web site has been adapted from a version released under Creative Commons at http://businessmodelgeneration.com Report Write a report that introduces your chosen business, explains the nine building blocks of your Business Model Canvas, and discusses how your business resembles one of the business model patterns described in chapter two of the textbook (Patterns). The report should be prepared as a Microsoft Word document. It should be entitled ‘MMST13017 Assignment 2’, and the title should be followed by your name and student number. The length of the report should be between 1000 and 1500 words. The following outline explains how to structure your report. It lists the headings for each of the twelve sections of your report. Each section should answer the questions that are provided in a narrative style, not a question-and-answer format. Do not include the questions in your report. Introduction  What is the name of the business?  What products or services does the business provide?  What problem, opportunity or need does the business satisfy?  When was the business established?  Where does the business operate? Customer segments (CS)  For whom does the business create value?  Who are the business’s most important customers? Value propositions (VP)  What value does the business deliver to the customer?  Which one of the customer's problems is the business helping to solve?  Which customer needs is the business satisfying? 3  What bundle of products and services is the business offering to each Customer Segment? Channels (CH)  Through which Channels do the Customer Segments want to be reached?  How is the business reaching them now?  How are the business’s Channels integrated?  Which ones work best?  Which ones are most cost-efficient?  How is the business integrating them with customer routines? Customer relationships (CR)  What type of relationship do each of the Customer Segments expect the business to establish and maintain with them?  Which ones have the business established?  How costly are they?  How are they integrated with the rest of the business model? Revenue streams (R$)  For what value are the business’s customers really willing to pay?  For what do they currently pay?  How are they currently paying?  How would they prefer to pay?  How much does each Revenue Stream contribute to overall revenues? Key resources (KR)  What Key Resources do the business’s Value Propositions require?  What Key Resources do the business’s Distribution Channels require?  What Key Resources do the business’s Customer Relationships require?  What Key Resources do the business’s Revenue Streams require? Key activities (KA)  What Key Activities do the business’s Value Propositions require?  What Key Activities do the business’s Distribution Channels require?  What Key Activities do the business’s Customer Relationships require?  What Key Activities do the business’s Revenue Streams require? Key partnerships (KP)  Who are the business’s Key Partners?  Who are the business’s key suppliers?  Which Key Resources are the business acquiring from partners?  Which Key Activities do partners perform? Cost structure (C$)  What are the most important costs inherent in the business model?  Which Key Resources are most expensive?  Which Key Activities are most expensive? Business model pattern  Which business model pattern from chapter two of the textbook does the business resemble? (Unbundled business models; Long Tail business models; Multi-Sided Platform business models; Free business models; or Open business models) 4  What are the characteristics of that pattern?  How does the chosen business resemble that pattern? References This section should provide a list of references to any works that are cited in your report, such as books, journals, periodicals, newspapers and web sites. References must be provided whenever you quote, paraphrase or summarise the work of another author. At the very least, your report should reference the textbook when it first introduces the Business Model Canvas. The recommended referencing system for this course is the author-date system (sometimes called the name-year system or the Harvard system), which is described at the following address: http://www.cqu.edu.au/studentlife/services-and-facilites/referencing Presentation and submission This assignment must be submitted electronically through the course web site. You must submit a single archive file (zip file) named assignment2.zip that contains the following files:  a Microsoft Word file named canvas.docx containing your Business Model Canvas; and  a Microsoft Word file named report.docx containing your report. Instructions for submitting assignments electronically are available on the course web site. Plagiarism The work that you submit for this assignment must be your own. You must not take the words or ideas of others and attempt to pass them off as your own when completing this assignment. Refer to the University's Plagiarism Policy for more information. Assessment criteria The assignment will be assessed against the following criteria. Penalties will be applied for late submission and failing to comply with the assignment's requirements. Criteria Marks Report introduction and discussion of the nine building blocks of the Business Model Canvas (content; clarity; completeness; formatting and presentation; adherence to outline; word count; grammar, punctuation and spelling; written expression and style; appropriate referencing) 20 Discussion of the business model pattern within the report (content; clarity; completeness; formatting and presentation; adherence to outline; word count; grammar, punctuation and spelling; written expression and style; appropriate referencing) 5 Business Model Canvas (content; clarity; completeness; formatting and presentation; use of template; grammar, punctuation and spelling;) 5 Total 30