Skip to content

How do I use the Business Model Canvas Key Activities building block?

IMAGE OF Key Activities

The Key Activities follow the Key Resources, the most crucial inputs for your business.

These are the tasks the company must complete to meet its business purpose—meeting the Value Proposition, reaching Customer Segments, maintaining Customer Relationships, and creating Revenue Streams.

Business Model determines key activities. Product-focused companies conduct research. Third-party contract companies must prioritize channel management.

How can you define the Key Activities of your Business Model Canvas effectively?

 

What are Key Activity Categories in Business Model Canvas?

Production: product development, manufacturing, and delivery. It usually involves lots of products. This dominates manufacturing-focused Business Models.

Organizations solve problems by problem-solving. Hospitals and consultancies are examples. These companies emphasize knowledge management and ongoing training.

Platforms include networks, combination platforms, software, and brands. The company builds, manages, and promotes the platform and provides services.

Typical activities

Most organizations perform these key activities:

Research & Development

Works with marketing, production, sales, and other departments. It performs:

New product research: The R&D department evaluates design, cost, and production time before a product enters production.
New product development: The initial evaluation results in developing the new product.
Existing product updates: Besides new products, evaluating existing products’ market fit is important. Public demands or industrial changes may require product updates. Faults may also need fixing.

Quality checks

The R&D department audits and quality checks products to meet company standards.

Innovation

Finally, the department monitors market trends and innovations to ensure the company and products meet the scenarios.

Production

One of the most comprehensive areas includes many typical activities that may become Key Activities. Such as:

Selecting and designing a product to market is the first step. This combination is the company’s Value Proposition and may determine its success.
After choosing a product, the company must choose a production process, including technology, machinery, and systems.
Correct production capacity: the company must know product demand to determine production capacity.
Product shortage and surplus can cause issues. Production managers use break-even analysis most to predict capacity.
Production planning: create a healthy, sustainable, and economical flow. Includes a schedule of activities within set hours.
Production control: monitor and correct production deviations to ensure planned production.

image of Production

Quality and cost control

Improving the product while lowering costs to compete in the market.
Production-driven businesses need inventory control. Overstocking wastes materials, while understocking delays production and causes late deliveries.
Machine maintenance and replacement: everything to keep equipment and machinery running smoothly to avoid production chain interruptions.

Marketing

It manages company growth and value. Its Key Activities include:

Strategy: designing and implementing marketing strategies based on company goals and missions.

Market research: examines the market, product strengths and weaknesses, target audiences, and competitors.

Marketing collaborates with product development. In this case, a new product can fill market gaps.
Communications: includes all product-related press releases, ads, emails, etc.
Sales support: marketing collaborates with sales to provide leads and promotional materials.
Key and potential customers are invited to seminars, product launches, exhibitions, and other events.

image of Marketing

Sales/Customer Service

Sales and service impact customer experience. They create brand advocates and customer loyalty.

The company’s “front” team handles customer complaints and has the power and resources to resolve them.

They can also manage new and existing client accounts.

To determine your business’s Key Activities, you must examine the related components and identify which are necessary to deliver value propositions, maintain customer relationships, take advantage of distribution, and generate revenue.

Naturally, this block must be updated as the business evolves to include new Key Activities.

Leave a Reply

Your email address will not be published. Required fields are marked *